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IN RE JOHNSTON

BAP No. NV-90-1789-ARP, Bankruptcy No. BK-S 90-01317-RCJ.

149 B.R. 158 (1992)

In re John Luther JOHNSTON, Debtor. John L. JOHNSTON, Appellant, v. JEM DEVELOPMENT CO., Neal McFarland, Bradley Enright, Thomas Enright, Keith Galliher, Colleen Eckman, Verlamae Rigby, Trustees of the Teamsters, Troy and Nichols, IRS, CSC Financial Services, Cenlar Federal Savings Bank, New Mexico Taxation Department, Arizona Department of Transportation, Martin J. Safko, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 16, 1992.

Attorney(s) appearing for the Case

George R. Carter, Las Vegas, NV, for John L. Johnston.

Paul V. Carrelli, Las Vegas, NV, for Jem Development Co. et al.

Before ASHLAND, RUSSELL and PERRIS, Bankruptcy Judges.

OPINION

ASHLAND, Bankruptcy Judge:

John Luther Johnston appeals an order of the bankruptcy court for conversion from a Chapter 11 bankruptcy case to one under Chapter 7 based on the inability of the debtor to propose an effective plan of reorganization. We affirm.

STATEMENT OF THE FACTS

The debtor John Johnston owned a trucking and hauling company. In 1986 Johnston sold his business to his nephew Bradley Enright and Neal McFarland, both...

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