Federal bankruptcy officials asked a federal judge to dismiss the chapter 11 application for protection from creditors filed by Sherman Industry Inc., a geothermal heating and cooling installation company that lost licenses to operate on Long Island after dozens of consumer complaints, Newsday reported today. As an alternative to dismissal, the office of U.S. Trustee William K. Harrington asked Bankruptcy Judge Alan S. Trust yesterday to convert the filing to chapter 7. The application filed in federal court in Central Islip, N.Y., by an attorney for the U.S. trustee said, "Since the filing of this chapter 11 case, the debtor [Sherman] has failed to provide any financial information to the United States trustee...[and] 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."
