Estate’s Interest in a Court Approved Sales Agreement with a Balance Due of $1,410,000!

Description

Item Id: BNP01
Case Name: BNP Petroleum Corporation
Case Number: 09 20206
Trustee:
Starting Minimum Bid: $35,000

Description: 
The Trustee states the Bankruptcy Estate’s interest equates to:
80% of stream of payments (under Trustee’s settlement with Shor), as of 5/16/2018, with the remaining balance of $126,000 and may be slightly less at the close of auction. Trustee anticipates a $3,000 payment in June and will reduce the remaining balance to $123,000; and 80% of 10% of any payments thereafter up to the remaining balance of $1,410,000 (under Black’s settlement with Shor) and may be slightly less at the close of auction. As stated above, Trustee anticipates a $3,000 payment in June and will reduce the remaining balance to $1,407,000.

Trustee has received a total of $340,000. These funds are held by the Estate / Trustee and are retained and not included.

These balances are subject to reduction based on payments received in the interim. Once the highest bid amount has been paid by certified funds to BKAssets.com, any future payments will be redirected to the new owner.  There shall be no claim by the new owner to any prior payment receive by the Trustee in any circumstance.

A Bankruptcy Court Approved Sale between the Bankruptcy Estate and Toby Shor, Seashore Investments Management Trust and 2004 GRAT (collectively referred to as “Seashore”) that was filed with the Court on June 28, 2011 at docket No #1185 hereby attached and referred to as Exhibit A. The actual sales agreement signed by the parties is hereby attached and referred to as Exhibit B.

The sales agreement is summarized as follows:

Upon approval of the sale,
(i) Seashore shall pay the Estate / Trustee the cash sum of $216,000. This amount has been paid to the Trustee and the buyer of this sales agreement will NOT be entitled to these proceeds.
(ii) Further, the sales agreement calls for Seashore to pay to the Estate / Trustee 50% of the first $500,000 ($250,000) actually collected by Seashore from the Black Entities (net of any contingent legal fees incurred by Seashore). The Trustee has received $124,000 from Seashore as payment towards this amount due the Estate and therefore the buyer of this sales agreement will not be entitled to collect that amount from the Trustee or Seashore; and
(iii) finally, the Estate / Trustee is entitled to 10% of all amounts actually recovered against the Black Entities, up to a cap of $1,750,000 (collectively, the “Purchase Price”) These percentages are net of contingent legal fees incurred by Seashore. In return for the purchase price, the Trustee transferred to Seashore or its designee all claims and causes of action that the Estate held against the Black Entities, for Seashore to pursue at its sole discretion.

Attachments: Additional Documents Attached:

Exhibit A – Emergency Joint Motion of Michael B Schmidt, Chapter 7 Trustee for the Debtors and Seashore, to sell certain assets of the debtor’s Estate pursuant to Bankruptcy Code Section 262(b) and to approve Sale Agreement.

Exhibit B – Sale and Conveyance of Estate’s Rights, Settlement and Mutual Release / actual Sales Agreement between and Bankruptcy Estate and Seashore.

Exhibit C – Settlement Agreement dated December 21, 2016 between the Black Entities and Seashore. After the sale was concluded, the litigation between Seashore and the Black entities proceeded in the District Court of Harris County, Texas Cause #2014-20261. This litigation resulted in a Court Approved Settlement Agreement between Seashore and the Black Entities. This agreement lays out the terms of payment by the Black Entities to Seashore.

Exhibit D – Order Granting Joint Motion of Seashore and Michael B. Schmidt, Chapter 7 Trustee for the Debtors and Seashore, to sell certain assets of the debtor’s Estate pursuant to Bankruptcy Code Section 363(b) and to to approve sales agreement.

Exhibit E – Findings of Fact and Conclusions of Law on Joint Motion of Seashore and Michael B. Schmidt, Chapter 7 Trustee, to sell certain assets of the debtor’s Estate pursuant to Bankruptcy Code Section 363(b) and to approve sales agreement.

Exhibit F –  Order directing 80% of the payments to Estate.

Exhibit G – Payment Steam

Trustee will provide known address of the defendants to the winning bidder.

Liens: We do not know of any liens.

Bidding Guide: Please review the bkassets.com bidding guide for terms of auction prior to placing a bid or making an offer.

Notes: A closing cost fee of $525 will apply. This is all we know about this item. Any fees/liens owing on this item are not part of the final bid price.  A bid submitted by a buyer is an agreement to our Terms. Buyers should not bid unless they fully intend to complete the sale in accordance with our Terms.

Bidders should familiarize themselves with BKAssets.com policy regarding ‘Proxy Bidding’ (see ‘Bidding Guide’ on BKAssets.com Home Screen). BKAssets is not responsible for connectivity issues, or Internet transmission times, when submitting an auction bid near the close of auction. The auction process does not extend past the set close time of the auction and bidders are solely responsible for the timing and receipt of their bids if they elect not to utilize Proxy bidding.

Legal Info: By Order of the United States Bankruptcy Court, BKAssets.com sells this and any other property “AS IS, WHERE IS”, with no warranties implied or stated. This means that the Seller and the trustee are not responsible for problems (if any) with the title, the condition of the property or rights, or any liens or encumbrances against the unit. The buyer will be entirely responsible for this property after the sale including but not limited to: paying any fees/costs associated with this property, paying all fees/liens (if any), recording/transferring the title and gathering any paperwork/documentation necessary for that process. Seller and trustee are NOT appraisers. BKAssets and the trustee shall be under no obligation to buyer except to provide buyer with an assignment or deed as required by Karnes County. All the information as to the item description has been provided by the court. BKAssets cannot guarantee that all the information is accurate. BKAssets recommends all bidders perform their own due diligence prior to bidding. As with any bankruptcy sale, this sale may be subject to court approval.

Payment Info: $U.S. Money order, certified check, cashier’s check. BKAssets may also accept “Bill Pay” from Wells Fargo, Bank of America, Chase, Citibank, a local regional bank or Credit Union. If you would like to use “Bill Pay,” but do not bank at one of these establishments, please call BKAssets prior to sending payment.

A document preparation fee of $575 (payable to seller) will apply. Full payment must be received within (7) days of winning bid. Any bidder who does not complete the sale within 7 days from the close of auction will be considered in default. Seller has the right to proceed with the next highest bidder.

Shipping Info: Shipping is included to all buyers in the United States. International bidders are welcome, please contact BKAssets for shipping costs to countries other than the United States prior to bidding. Shipping costs to locations outside of the US will be calculated at the close of auction. Please be advised that because this is a US Bankruptcy Court Ordered sale, and subject to approval, shipping can take an average of 3-6 weeks.

Liens: We are not aware of any liens.

*Picture is of general area, not representative of actual property.*

Bidding Guide: Please review the bkassets.com bidding guide for terms of auction prior to placing a bid or making an offer.