.jpg)
Any problems with CH 11 debtor (pre-BK) setting up second corp to
Debtor has equipment leases with various lessors. Debtor wants to set up
another corp (in order to work with someone who will give it business), but
use some of the leased equipment that will be in the CH 11 estate once we
file.
Is there any problem with setting up another corp and subleasing the
equipment from the CH 11 debtor? The second corp has the potential to pay
debtor not only for the monthly lease payments (which in turn can be paid
to lessors) but also fund the CH 11. (Long story, but there is a company
that does not want to work directly with the CH 11 debtor entity, hence the
need to create a new entity).
What are we walking into here? It seems to me if the potential to make
money is there and pay off 100% in less than 5 years, it should be a good
deal for everyone.
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
Debtor has equipment leases with various lessors. Debtor wants to set up another corp (in order to work with someone who will give it business), but use some of the leased equipment that will be in the CH 11 estate once we file.Is there any problem with setting up another corp and subleasing the equipment from the CH 11 debtor? The second corp has the potential to pay debtor not only for the monthly lease payments (which in turn can be paid to lessors) but also fund the CH 11. (Long story, but there is a company that does not want to work directly with the CH 11 debtor entity, hence the need to create a new entity).What are we walking into here? It seems to me if the potential to make money is there and pay off 100% in less than 5 years, it should be a good deal for everyone.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.