If CH 11 sells business after discharge/case closure, and purchase
Posted: Mon Mar 12, 2018 12:40 pm
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
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.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
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