U.S. Trustee seeks denial of former Bowe Bell + Howell case dismissal

By Caroline Salls

Pittsburgh, March 20 - The U.S. Trustee for Mail Systems Liquidation, Inc.'s Chapter 11 bankruptcy case objected to the company's case dismissal motion, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Region 3 U.S. trustee Roberta A. DeAngelis said the company is looking to dismiss the case without making any distributions to some administrative claimants, many of which are governmental entities, while allowing Mail Systems' counsel and other administrative creditors to be paid at or close to the full amount of their claims.

As a result, DeAngelis said conversion of the case may be appropriate to allow a Chapter 7 trustee to investigate whether to seek disgorgement of interim compensation paid to professionals or amounts paid to other administrative claimants.

A hearing on the case dismissal motion is scheduled for March 21.

Mail Systems was formerly Bowe Bell & Howell, a Wheeling, Ill., provider of high-performance document management services. The company filed for bankruptcy on April 18, 2011 under Chapter 11 case number 11-11187.

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