§1204. Removal of debtor as debtor in possession

(a) On request of a party in interest, and after notice and a hearing, the court shall order that the debtor shall not be a debtor in possession for cause, including fraud, dishonesty, incompetence, or gross mismanagement of the affairs of the debtor, either before or after the commencement of the case.

(b) On request of a party in interest, and after notice and a hearing, the court may reinstate the debtor in possession.

(Added and amended Pub. L. 99–554, title II, §255, title III, §302(f), Oct. 27, 1986, 100 Stat. 3107 , 3124; Pub. L. 105–277, div. C, title I, §149(a), Oct. 21, 1998, 112 Stat. 2681–610 ; Pub. L. 106–5, §1(1), (2), Mar. 30, 1999, 113 Stat. 9 ; Pub. L. 106–70, §1, Oct. 9, 1999, 113 Stat. 1031 .)

Termination of Section

For termination of reenactment of this section by section 149(a) of Pub. L. 105–277, as amended, see Repeal, Reenactment, and Termination of Chapter note set out under section 1201 of this title.

Codification

For repeal of section effective Oct. 1, 1998, and subsequent reenactment of section for specific periods, see note set out preceding section 1201 of this title.

Section Referred to in Other Sections

This section is referred to in sections 363, 364, 1207 of this title.