The trustee for Little Rock developer Philip Herrington withdrew a request last week that his bankruptcy be converted from reorganization to Chapter 7 liquidation.
A hearing on the issue had been scheduled for Tuesday, but Acting U.S. Trustee Daniel Casamatta agreed to give Herrington more time to file his required paperwork.
In addition, Herrington is working on a settlement with his creditors. If the settlements fall apart, Herrington will dismiss his Chapter 11 reorganization or convert to a liquidation by December.
If you recall, Herrington filed for Chapter 11 in March and listed $13.45 million in debts and only $5.1 million in assets.
In his earlier motion to convert the case to a liquidation, Casamatta said Herrington had failed to hand over copies of his 2013, 2014 and 2015 tax returns, even though he was asked several times to do so.
As part of the agreement to withdraw the motion, Herrington has agreed to file those with the trustee this week.
U.S. Bankruptcy Judge Ben Barry approved of the Herrington’s extension.