17 B 22517
The movants sought dismissal of this Chapter 11 case for cause alleging that the Debtor is an instrumentality of the Village of Lombard, and as such is not allowed to seek bankruptcy relief as a governmental unit.  The Debtor was incorporated by Lombard to construct and operate a hotel and convention center which has been managed under the Westin flag for several years. The court denied the motions to dismiss finding that Lombard did not control the Debtor and that the Debtor did not perform municipal functions, relying in part on an Illinois Appellate Court ruling denying the Debtor’s efforts seeking a tax exemption as a governmental body.