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Cheyenne’s Bankruptcy Proceedings
On February 28, 1989, petitioner filed a voluntary
chapter 12 petition in bankruptcy for Cheyenne. Cheyenne
failed to fulfill its duties as a debtor-in-possession and to
file complete and adequate schedules with the bankruptcy court.
Cheyenne also failed to cooperate with the trustee in bankruptcy
and to provide the trustee with financial information. As a
result, Cheyenne’s petition was dismissed on May 15, 1989.
On June 20, 1989, petitioner filed a second voluntary
chapter 12 petition in bankruptcy for Cheyenne. This petition
was also filed without the required statements and schedules. On
July 18, 1989, this petition was dismissed.
In 1989, the Agricultural Stabilization and Conservation
Service (ASCS) owed a 1988 corn and soybean disaster payment to
Cheyenne in the amount of $37,723. ASCS distributed the disaster
payment to the Commodity Credit Corporation (CCC) and the SBA,
creditors of Cheyenne, in the amounts of $34,171 and $3,552,
respectively. Cheyenne did not report the $37,723 disaster
payment on its 1989 Form 1120S.
In 1989, Cheyenne was also entitled to receive a Federal
Crop Insurance (FCI) payment in the amount of $43,496 from
Thurston Fire & Casualty Insurance Co. In 1989, the $43,496 FCI
payment was made to AG Services of America, a creditor of
Cheyenne that had financed its farming operations in earlier
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Last modified: May 25, 2011