Inforuptcy Blog Archives October 2014

We Are Getting Closer to the Holy Grail

Posted by Michael on November 2, 2014

In an effort to improve our bankruptcy assets database, we are constantly working on innovative, new services. With our Rainmaker plan, our customers can use our advanced search tool to hone in on cases where the trustee filed a ‘Notice of Asset’ or ‘Notice to File Claim’ on a daily basis. These docketed events are leading indicators where the trustee has identified asset cases. Our tool narrows down the list of thousands of bankruptcy cases filed daily to the ones where there is an opportunity to profit.

For example, here are some results for 'Notice to File Claim' for October 1st.

Results of File a Claim search

We have also launched a number of new (beta) initiatives:

  • We are testing with a few trustees to list their assets before a sale motion is filed.
  • We will soon launch a series of articles authored by experts guest bloggers on our site. The articles will cover everything from the basics of how to buy bankruptcy assets to more advanced techniques.Whether you’re new to the game or seasoned veteran, you will benefit from the knowledge to be shared.

If you are interested in becoming a stalking horse bidder, we strongly recommend signing up to our Rainmaker plan.

Sale of Various Oil/Gas Royalties

Posted by Michael on October 22, 2014

This week we're highlighting the sale of various of oil/gas royalties.

You can read the entire sale motion for free and contact the trustee to learn more about bidding on these assets or others that we have on our site for subscribers.

Oil and Gas Royalties

Snippet from the Sale Motion

TRUSTEE'S MOTION TO SELL ESTATE'S INTEREST IN VARIOUS OIL/GAS ROYALTIES

Date: November 13, 2014 Time: 11:00 a.m. Place: Foley Bldg., Third Floor

Lenard E. Schwartzer, Chapter 7 Trustee (the"Trustee"), hereby moves this court for an Order authorizing the Trustee to sell the estate's interest in various oil/gas royalties, and alleges:

Debtor, BLYNTHIA JOYCE NEWHOUSE, aka Bynthia Joyce Rabb, aka Cynthia J. Newhouse, aka Cynthia J. Rabb, filed for relief under Chapter 7 of the United States Bankruptcy Code on May 2, 2014, and LENARD E. SCHWARTZER is the appointed and acting trustee in this matter.

Debtor's assets include various oil/gas royalties, including, but not limited to, those scheduled on Exhibit "1", attached hereto.

To date, the Trustee has collected a total of $572.97 from the various oil/gas royalties.

The Trustee has received one offer to purchase the estate's interest in the oil/gas royalties as follows: McCulliss Oil & Gas Inc. $16,000.00

A copy of said offer is attached as Exhibit "2", attached hereto.

The Trustee is of the information and belief, and thereon alleges, that the offer of $16,000.00 is reasonable and acceptance of the offer is in the best interest of the estate.

The Trustee is unaware of any claims secured by the asset to be sold. If any creditor alleges that they have a perfected secured lien against the asset, the Trustee would suggest that said lien be deemed transferred to the proceeds of the sale pending further order of this court.

The Trustee requests that in the event there is a higher offer on the asset, that the Trustee be given authority to sell the asset to the highest bidder under similar terms and conditions.

CONCLUSION WHEREFORE, Trustee prays for an order authorizing him to (1) sell the estate's interest in the oil/gas royalties, free and clear of any and all liens encumbrances, to McCULLISS OIL & GAS INC. for $16,000.00 under the terms and conditions set forth herein, or (2) accept any higher offer on the asset and sell the asset to the highest bidder under similar terms and conditions, and (3) execute any and all documents necessary to effectuate the sale. 

To search and hunt for all asset sales across the country, you can sign up for $99 / month (cancel any time).

If you prefer, you can also schedule a 15 minute web demo so you can see for yourself how to get started.

Schedule a Demo

P.S. If you are a trustee and would like us to showcase your deals in our newsletter, please email us at assets@inforuptcy.com.

P.P.S. Sign up to our free newsletter to learn about more bankruptcy asset sales.

Sale of 22 Residential Properties in Atlanta

Posted by Michael on October 3, 2014

This week we're highlighting the sale of  twenty two (22) residential real properties located in Atlanta, Georgia from Capital City Developers, LLC, the debtor and debtor-in possession, (“Debtor”).

You can read the entire sale motion for free and contact the seller to learn more about bidding on these assets or others that we have on our site for subscribers.

Twenty-Two Residential Properties in Atlanta

Snippet from the Sale Motion

BACKGROUND
On September 24, 2014 (the “Petition Date”), Debtor filed with the Court a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. Since the Petition Date, Debtor has operated its business affairs as a debtor-in-possession pursuant to §§ 1107 and 1108 of the Bankruptcy Code. No trustee or examiner has been appointed, and no official committee of creditors or equity interest holders has yet been established.

As of the Petition Date, Debtor owned twenty-two (22) residential real properties located in Atlanta, Georgia which are identified on the attached Exhibit A (the “Properties”). Each of the properties is encumbered by a first in priority deed to secured debt held by Bank of North Georgia (“BNG”).

On August 1, 2011, BNG obtained a judgment against the Debtor in the amount of $2,715,649.24 arising from an action to recover amounts due pursuant to nineteen (19) promissory notes executed by the Debtor. The Properties are collateral for the promissory notes.

The Properties may also be encumbered by other liens, including but not limited to liens for ad valorem real property taxes totaling approximately $100,000 and judgment liens.

As of the Petition Date, the aggregate market value of the Properties is estimated by Debtor, as being in excess of $1 million. As noted previously, five (5) of the Properties have been the subject of tax sales and will have to be redeemed in order to be sold and three (3) are the subject of fraudulent deeds out of the Debtor to a third party which will have to be set aside.

The purpose of this Motion is to obtain authority for Debtor to sell the Properties identified on the attached Exhibit A pursuant to the procedures proposed herein. The sale will take place under the terms and conditions described in the Motion and attached exhibits, as they may be amended or supplemented by Debtor or by the instructions of the Court.

RELIEF REQUESTED
By this Motion, Debtor seeks the Court’s approval to allow Debtor to sell the Properties for the highest and best price free and clear of all liens, claims and encumbrances, except any liens arising from any real property ad valorem taxes due on the Properties, pursuant to the procedures set forth herein.

The sale will be AS IS WHERE IS with a full disclaimer by Debtor of any warranties and subject to all matters of survey and record. All purchasers must be willing and able to close within thirty (30) days of the entry of an order by the Bankruptcy Court approving the sale.

The Properties may be sold individually or in groups as the case may be in order to maximize the proceeds from the sale.

The proceeds from the sale of the Properties will be paid to BNG up to the amount of its claim in the Bankruptcy as to that Property.

PROCEDURES GOVERNING THE SALE OF THE PROPERTIES
Debtor proposes to retain Synergy Real Estate Group, LLC and Masharn Wilson (the “Broker”) to market the sale of the Properties.

Specifically, the Broker will market the Properties for sale for a period of sixty (60) days after the entry of Orders approving the retention of the Broker and granting this Motion (the “Marketing Period”). The Broker shall use a standard Atlanta Board of Realtors residential real estate form contract and all offers must be made on the form with no changes from the printed type, except that the contract form will include a provision that all sales are “AS IS” “WHERE IS” and that neither Debtor, its management, attorneys, nor Broker represent or guaranty the accuracy of the financial information contained in the Motion or sales information. All due diligence risk shall be the responsibility of the offeror.

The deadline for the submission of contracts for the purchase of the Properties will be the end of the Marketing Period.

At the end of the Marketing Period, the Broker will submit a report to Debtor listing all offers to purchase the Properties. Debtor will then select the highest and best offer and notify all offerors regarding the selection within five (5) days of the end of the Marketing Period and file such report with the Court (“Report of Winning Bids”) and serve a copy on all offerors along with a copy of the order granting this Motion and setting the Sale Approval Hearing, as defined herein.

Pursuant to the Motion, the Debtor also requests the Court to set a hearing seventy (70) days following the entry of the Orders approving the retention of the Broker and granting this Motion (the “Sale Approval Hearing”) to approve the offerors and to consider any higher and better offers.

The sales of the Properties must close within thirty (30) days following e entry of an Order approving the sale by the Bankruptcy Court. A detail of the proposed schedule for the marketing of the Properties is attached hereto as Exhibit B.

In addition to the foregoing, the Debtor proposed the following procedures for the bidders on the Properties:

a) Each bid must include an earnest money deposit of $2,500.00 in certified funds payable to Debtor’s attorney, Schreeder, Wheeler & Flint, LLP.

b) Earnest money shall be held in the escrow account by Debtor’s attorney and shall be returned to unsuccessful bidders thirty (30) days following the expiration of the Marketing Period.

c) Each offer must be on the form approved in this Motion and all sales are “As Is, Where Is”.

d) Each bidder shall conduct its own title, survey or other due diligence at its sole cost and expense prior to the deadline for submitting bids per the schedule in the Motion.

e) Neither Debtor, its management, attorney nor Broker represent or guaranty the accuracy of the financial information contained in the Motion or sales information.

To search and hunt for all asset sales across the country, you can sign up for $99 / month (cancel any time).

If you prefer, you can also schedule a 15 minute web demo so you can see for yourself how to get started.

Schedule a Demo

P.S. If you are a trustee and would like us to showcase your deals in our newsletter, please email us at assets@inforuptcy.com.

P.P.S. Sign up to our free newsletter to learn about more bankruptcy asset sales.