IN THE UNITED STATES BANKRUPTCY COURT  FOR THE SOUTHERN DISTRICT OF IOWA      In the Matter of:    Foods, Inc.,    Case No. 14-02689-als11          Debtor          John Michael Maier, as Trustee          Adv. Pro. 21-30022-als  for the Dahl's Employee Stock Ownership  Plan and Trust,        Plaintiff      v.    Barry A. Chatz,        Defendant        MEMORANDUM OF DECISION  (Date entered on docket: August 23, 2022)      Before the Court is the Defendant’s Motion to Dismiss and Plaintiff’s Objections. The  Court has jurisdiction of this matter pursuant to 28 U.S.C. §§157(b)(1) and 1334. For the reasons stated the objections are sustained and the Motion to Dismiss is denied.  BACKGROUND FACTS  Foods, Inc. owned and operated a chain of grocery stores. Due to diminishing profits and  inability to compete in the marketplace it filed a chapter 11 petition on November 9, 2014. The schedules identified the Dahl’s Employee Stock Option Plan (ESOP) as both a creditor (ECF No. 20) and an equity holder (ECF No. 1). Among the proofs of claim filed in the case was number 176 filed by John Maier as the ESOP’s Trustee. The claim was finally allowed as a priority claim in the amount of $191,543 and as an unsecured claim in the amount of $904,119 for a total claim of $1,095,662. (ECF No. 842, Exhibit A).  Throughout the administration of the bankruptcy case there were allegations that some  officers and directors had engaged in conduct which affected the business operations and its stock. The Debtor proposed a liquidating plan using a liquidating trust as the vehicle to administer available assets and pay creditor claims. Creditors in Class 3 (unsecured creditors), Class 4 (subordinated general unsecured ESOP Contribution Claims), and Class 5 (equity interest holders)  Case 21-30022-als Doc 40 Filed 08/23/22 Entered 08/23/22 15:52:05 Desc Main  Document Page 1 of 7

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