Bankruptcy Judge Alan S. Trust ordered Sherman Industry Inc., a Westbury, N.Y., home remodeler that lost its licenses to operate on Long Island amid consumer complaints, to liquidate rather than reorganize and resume operations, Newsday reported today. Judge Trust ordered that Sherman's bankruptcy be converted from chapter 11 to chapter 7, appointed an interim trustee for the case and set a creditors' meeting for 11 a.m. Sept. 3 at the courthouse in Central Islip. The Office of the United States Trustee on Monday asked Judge Trust to either dismiss Sherman's June 25 application for protection from creditors and reorganization under chapter 11 or convert it to a chapter 7 liquidation proceeding. The request made to Judge Trust said that Sherman, which is not operating, "has failed to demonstrate to the court and the trustee that it has either the means or the desire to proceed toward a successful reorganization."
