Trustee Selling 20% interest in partnership that owns sma=
Posted: Mon Dec 16, 2013 5:49 pm
Are the partners willing to object on the grounds it violates the partnership agreement?
Jonathan Leventhal, Esq..
Leventhal Law Group, P.C.
818-347-5800
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Date:12/16/2013 5:42 PM (GMT-08:00)
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Trustee Selling 20% interest in partnership that owns small Mexican bodega
This is a new one on me. A Chapter 7 Trustee is selling a 20% interest in a general partnership owned by my clients that represents their ownership in a family grocery store with about 500-800 square feet of retail space. The Trustees Motion is under 11 U.S.C. 363(f). The partnership agreement does not allow unapproved partners into the partnership, for whatever thats worth. 11 U.S.C. 541(c) still makes that an asset of the estate despite the restriction on transfer, although the corporations code highly restricts what a transferred interest can get in terms of rights of the new partner. One of the nondebtor partners is the landlord, and there is no lease.
The price the buyer is offering seems very high, and hes put no money down, so Im wondering if this is just pressure on the existing partners. The existing partners were asked to buy out the Debtors interest for twice as much as the buyer offered. Im wondering if this buyer is for real or just to try and get a bidding war going. Ive never had a small minority interest sold before unless the other partners wanted to buy it. It seems strange to say Hey, Im your new partner, start paying me. They could just hold onto the money, or start paying themselves a salary for the work they do instead of withdrawals.
More than the strangeness of it all, however, Im wondering if anyone has any good ideas as to whether the partners can use to fight off this intrusion into their business without going into a bidding war.
Thank you
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
> Tel. (562) 436-5456 ext. 1
> Fax (562) 485-6886
> sblever@leverlaw.com
> www.leverlaw.com
Are the partners willing to object on the grounds it violates the partnership agreement?
Jonathan Leventhal, Esq..
Leventhal Law Group, P.C.
818-347-5800
This email and any attachments thereto may contain private, confidential, and privileged material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited. If
you are not the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto.
Leventhal Law Group, P.C. is a Debt Relief Agency under federal law.
Note: The Leventhal Law Group, P.C. does not represent you until a written fee agreement has been signed by you and a representation ive of the Leventhal Law Group, P.C. and all fees listed in the agreement have been paid.
-------- Original message --------
Date:12/16/2013 5:42 PM (GMT-08:00)
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Trustee Selling 20% interest in partnership that owns small Mexican bodega
This is a new one on me. A Chapter 7 Trustee is selling a 20% interest in a general partnership owned by my clients that represents their ownership in a family grocery
store with about 500-800 square feet of retail space. The Trustees Motion is under 11 U.S.C. 363(f). The partnership agreement does not allow unapproved partners into the partnership, for whatever thats worth. 11 U.S.C. 541(c) still makes that an
asset of the estate despite the restriction on transfer, although the corporations code highly restricts what a transferred interest can get in terms of rights of the new partner. One of the nondebtor partners is the landlord, and there is no lease.
The price the buyer is offering seems very high, and hes put no money down, so Im wondering if this is just pressure on the existing partners. The existing partners
were asked to buy out the Debtors interest for twice as much as the buyer offered. Im wondering if this buyer is for real or just to try and get a bidding war going. Ive never had a small minority interest sold before unless the other partners wanted
to buy it. It seems strange to say Hey, Im your new partner, start paying me. They could just hold onto the money, or start paying themselves a salary for the work they do instead of withdrawals.
More than the strangeness of it all, however, Im wondering if anyone has any good ideas as to whether the partners can use to fight off this intrusion into their business
without going into a bidding war.
Thank you
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>(
Tel. (562) 436-5456 ext. 1
>(
Fax (562) 485-6886
>*
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