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MATTER OF NIKRON, INC.

Bankruptcy No. 82-04159-B.

27 B.R. 773 (1983)

In the Matter of NIKRON, INC., a Michigan corporation, Debtor.

United States Bankruptcy Court, E.D. Michigan, S.D.

February 22, 1983.

Attorney(s) appearing for the Case

Goldstein, Goldstein & Bershad, P.C. by Paul H. Steinberg, Southfield, Mich., for debtor.

OPINION

GEORGE BRODY, Bankruptcy Judge.

This case raises questions of paramount importance in the administration of chapter 11 cases—namely, whether a bankruptcy judge on his own motion has sua sponte power to convert a chapter 11 case to a chapter 7 case and what limits there are, if any, as to the availability of chapter 11 as a vehicle for liquidation.

Nikron, Inc., owned and operated a theater. In December of 1981, it sold the theater...

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