Riddick L. Bowe, 1st

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
RIDDICK L. BOWE, 1st : Case No. 05-41735PM
: Chapter 11
Debtor :
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MEMORANDUM OF OPINION
Riddick L. Bowe, 1st (“Debtor”), filed a bankruptcy case under Chapter 11 on October
15, 2005. The Debtor, a former heavyweight boxing champion of the world, based his hopes of
success for a Plan of Reorganization upon a recommencement of his pugilistic career. Debtor’s
recognition of the futility of this Plan was manifest by his Motion to Convert this case to a case
under Chapter 7. In a nutshell, the case went nowhere.
Debtor’s acknowledgment of futility was predated by a Motion filed by Commerce
Funding Corporation (“CFC”) to dismiss the case, convert the case to a case under Chapter 7, or
to appoint a trustee, filed on November 3, 2006. Likewise, the Office of the United States
Trustee filed a Motion on November 8, 2006, seeking conversion of the case to a case under
Chapter 7. Another creditor, Gulick Group, Inc., joined in both of the Motions. The Motions
were argued on February 1, 2007. At the argument, CFC changed its position and sought
dismissal of the case. Dismissal benefits CFC in that it would no longer be vulnerable to having
a voidable preference claim brought against it pursuant to § 547(b) of the Bankruptcy Code. On
the other hand, Debtor’s professionals benefit from conversion by virtue of the priority of
§ 726(b) of the Bankruptcy Code granting administrative expenses arising prior to conversion.
Debtor’s attorneys have pending an Application for Interim Compensation of $251,092.00.
Date signed February 02, 2007
Entered: February 02, 2007 Case 05-41735 Doc 297 Filed 02/02/07 Page 1 of 2

There are various actions that could be filed by a Chapter 7 Trustee on behalf of the estate that
might produce a substantial return for the estate.
The decision before the court is controlled by § 1112(b) of the Bankruptcy Code that
provides that “after notice and a hearing, the court may convert a case under this chapter to a case
under chapter 7 of the title or may dismiss a case under this chapter, whichever is in the best
interest of creditors and the estate . . . .” The court finds that the creditors of the estate, with the
obvious exception of CFC, will benefit from conversion of this estate to a case under Chapter 7
by virtue of the more equitable distribution of proceeds of the estate and the ability of the
Chapter 7 Trustee to pursue various actions, including a resolution of a dispute with Gulick
Group, Inc. Considering the lack of progress in this estate, it seems unlikely that the
professionals will be able to show that the benefit of the services rendered by them will approach
the amount of compensation sought.
An appropriate order will be entered converting the case to a case under Chapter 7 on the
Motion of the United States Trustee.
cc:
Stephen B. Gerald, Whiteford Taylor, 7 Saint Paul Street, #1400, Baltimore, MD 21202
United States Trustee, 6305 Ivy Lane, #600, Greenbelt MD 20770
Diarmuid F. Gorham, Esq., Shapiro Sher, 36 South Charles Street, #2000, Baltimore, MD 21201
Melvyn J. Weinstock, Esq., 6801 Kenilworth Ave., #400, Riverdale Park, MD 20737
H. Tucker Dewey, Esq., Husch Eppenberger, 200 Jefferson Ave., #1450, Memphis TN 38103
Heather R. Sullenberger, Esq., 4113 Maple Street, Fairfax, VA 22030
End of Memorandum
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