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If CH 11 sells business after discharge/case closure,
It's an INC, not an individual. Just not sure if there is something we need
to do. Case is closed, discharge entered because it's a corporation. Just
wondering if the corp needs to make the creditor payments after it is
purchased. Sounds like the principals selling the biz are going to make the
payments from the monthly purchase payments. Just not sure if this is
proper.
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
On Mon, Mar 12, 2018 at 5:37 PM, 'Peter M. Lively'
petermlively2000@yahoo.com [cdcbaa] wrote:
>
>
> Take a look at 1127(e). If the debtor is an individual, then the plan may
> be modified any time after confirmation but before completion of payments -
> the closing of the case may not matter. If I was an unsecured creditor and
> found out about this sale agreement, I'd move to modify the plan to access
> the surplus net proceeds of sale above the existing plant payout.
>
> Peter M. Lively, J.D., M.B.A.
> Law Office of Peter M. Lively * Personal Financial Law Center I
> 11268 Washington Boulevard, Suite 203, Culver City, California 90230
>
> -4647
> Telephone: (310) 391-2400 * Toll Free: (800) 307-3328 * Fax: (310)
> 391-2462
>
>
> On Monday, March 12, 2018, 12:41:35 PM PDT, Holly Roark
> hollyroark22@gmail.com [cdcbaa] wrote:
>
>
>
>
> Plan confirmed, case closed. Creditors (secured and unsecured) paid over 5
> years. Purchaser of business is putting down $100K and will pay $1MM over 3
> years to principals of Debtor.
>
> Principals who are selling the debtor, are proposing to make the creditor
> payments from the payments they receive for the purchase of the Debtor.
> (The debtor is a trucking company that has several trucks which are
> security for loans and leases paid according to the CH 11 plan.)
>
> If they were to default, who is liable? They no longer will own the
> Debtor, but it's the Debtor that has a confirmed plan, not the principals.
>
> I am having trouble wrapping my head around the sale of this debtor and
> who is really responsible to make the payments under the plan, especially
> since the purchase of the Debtor is to take place over 3 years and the plan
> is a 5 year plan.
>
> Do any of you have any post-CH 11 purchase/sale agreements you would like
> to share?
>
>
> Holly Roark
> Certified Bankruptcy Specialist*
> *and Sports Lawyer*
> holly@roarklawoffices.com **primary email address**
> www..roarklawoffices.com
> *Central District of California & District of Idaho* - Consumer
> Bankruptcy Attorney
> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
>
> T (310) 553-2600; F (310) 553-2601
>
> *By State Bar of California Board of Legal Specialization
>
>
>
>
It's an INC, not an individual. Just not sure if there is something we need to do. Case is closed, discharge entered because it's a corporation. Just wondering if the corp needs to make the creditor payments after it is purchased. Sounds like the principals selling the biz are going to make the payments from the monthly purchase payments. Just not sure if this is proper.Holly RoarkCertified Bankruptcy Specialist*and Sports Lawyer
holly@roarklawoffices.com**primary email address**
www.roarklawoffices.com
Central District of California & District of Idaho - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067T (310) 553-2600; F (310) 553-2601
The post was migrated from Yahoo.
Take a look at 1127(e). If the debtor is an individual, then the plan may be modified any time after confirmation but before completion of payments - the closing of the case may not matter. If I was an unsecured creditor and found out about this sale agreement, I'd move to modify the plan to access the surplus net proceeds of sale above the existing plant payout.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Monday, March 12, 2018, 12:41:35 PM PDT, Holly Roark hollyroark22@gmail.com [cdcbaa] wrote:
Plan confirmed, case closed. Creditors (secured and unsecured) paid over 5 years. Purchaser of business is putting down $100K and will pay $1MM over 3 years to principals of Debtor.
Principals who are selling the debtor, are proposing to make the creditor payments from the payments they receive for the purchase of the Debtor. (The debtor is a trucking company that has several trucks which are security for loans and leases paid according to the CH 11 plan.)
If they were to default, who is liable? They no longer will own the Debtor, but it's the Debtor that has a confirmed plan, not the principals.
I am having trouble wrapping my head around the sale of this debtor and who is really responsible to make the payments under the plan, especially since the purchase of the Debtor is to take place over 3 years and the plan is a 5 year plan.
Do any of you have any post-CH 11 purchase/sale agreements you would like to share?
Holly RoarkCertified Bankruptcy Specialist*
and Sports Lawyer
holly@roarklawoffices.com**primary email address**www..roarklawoffices.comCentral District of California & District of Idaho - Consumer Bankruptcy Attorney1875 Century Park East, Suite 600 Los Angeles, CA 90067T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of LegalSpecialization
The post was migrated from Yahoo.