Summit Financial conversion and trustee appointment hearing continued

By Caroline Salls

Pittsburgh, May 15 – A hearing on conversion of Summit Financial Corp.’s Chapter 11 bankruptcy case to Chapter 7 and appointment of a Chapter 11 trustee has been continued to June 5 from May 15, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Florida.

Lender agent Bank of America, NA filed a motion asking the court to continue the hearing on Tuesday.

Bank of America said in its motion that the hearing should be continued because the transition of the servicing of Summit’s loan portfolio is not expected to be completed until May 22. The agent said appointment of a trustee or conversion of the case before that date could disrupt the transition.

Wednesday’s order said Summit and its official committee of unsecured creditors agreed to the continuance request.

The creditors committee requested that a trustee be appointed, while Summit asked the court to convert the case.

Plantation, Fla.-based Summit provides financing by purchasing and servicing retail installment sales contracts. The company filed bankruptcy on March 23, 2018 under Chapter 11 case number 18-13389.

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