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Regarding third parties that were not subject to the Brazilian expansion order, the personal bankruptcy court in Petroforte held the trustee may be entitled to broad discovery to the level the borrower is a majority shareholder in the non-debtor discovery target.
Section 1106 of the Bankruptcy Code calls for the trustee to submit a strategy "as quickly as practicable" or, alternatively, to submit a report discussing why a strategy will not be filed or to advise that the situation be converted to another phase or rejected.
Yet submitting a proof of case is not needed if the financial institution's case is scheduled (but is not detailed as challenged, contingent, or unliquidated by the borrower) because the borrower's routines are considered to constitute proof of the legitimacy and quantity of those insurance claims.
The court, on activity by a party in rate of interest or the U.S. trustee and after notice and hearing, shall purchase the consultation of a situation trustee for cause, including fraudulence, dishonesty, incompetence, or gross mismanagement, or if such a visit remains in the passion of creditors, any kind of equity protection owners, and various other interests of the estate.
Trigger for termination or conversion additionally consists of an unexcused failing to prompt conformity with reporting and filing demands; failing to attend the conference of creditors or attend an examination without excellent reason; failing to timely provide info to the U.S. trustee; and failing to prompt pay post-petition tax obligations or prompt data post-petition returns Fed.