Chapter 11 Sale of Assets

John C. Turner, Trustee for Frisbee’s Supermarket & Cap’n Simeon’s Galley, Inc. In this case, the Trustee was faced with jointly-administered cases which were converted from Chapter 11. The principal assets of the estates were a waterfront restaurant and a market. However, the property was encumbered by numerous liens and numerous encroachment issues with an abutting landowner which, among other things, included an actual encroachment by the restaurant on the abutting landowner’s property, threatened to reduce the value of the property. This case was heavily publicized in southern Maine. The Trustee elected to proceed with an auction. However, once the Trustee with the assistance of counsel identified a prospective purchaser, the auction was reconfigured as a private sale subject to higher and better offers. With the assistance of Jeffrey Selser, a partner in Verrill Dana’s Real Estate Group, Verrill Dana resolved the various encroachment issues with the abutting landowner, which ensured that several qualified bidders appeared at the auction. The property was sold for almost double the original stalking horse offer.

The Bankruptcy & Creditors' Rights Group coordinated resolution of the encroachment issues with Jeffrey Selser. In addition, Christopher McLoon, a partner in Verrill Dana’s Business Law Group, specializing in tax matters, assisted in advising the Trustee on purchase price allocation issues and is assisting in evaluating whether the cases can be substantively consolidated or whether they should be administered separately.

This matter commenced in early 2009 and the sale was approved less than 60 days after that time. Claims were reviewed and objections to claims were resolved by the Court. This matter was completed in calendar 2010.