Arm Ventures, LLC, Debtor(s)., 564 B.R. 77

Summary

HOLDINGS: [1]-The court could not confirm a bankruptcy plan that was filed by a LLC that declared Chapter 11 bankruptcy and claimed that it owned only one asset--a building located in Miami Beach, Florida--because the LLC proposed to fund its plan, at least in part, by using money it received from a business that sold marijuana; [2]-Although it appeared that the LLC declared bankruptcy in bad faith to avoid a bank's action to foreclose a secured debt it was owed, the bank's motion to dismiss the LLC's case under 11 U.S.C.S. § 1112 would be denied without prejudice to give the LLC time to propose another plan because the LLC owed non-insider unsecured debt that would be affected if the case was dismissed; [3]-Although the bank was entitled to relief from the automatic stay, it had to cancel any foreclosure sale that was scheduled if the LLC filed a new plan which the court confirmed.