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Sale Description
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On June 11, 2008 at 10:00 a.m., or as soon thereafter as can be heard, in Courtroom 1475 of the United States Bankruptcy Court in the Edward R. Roybal Federal Building at 255 E. Temple Street, Los Angeles, California 90012, Rosendo Gonzalez, Chapter 7 Trustee (the "Trustee" or the "McNeill Trustee") of the bankruptcy estate of Dettor Roy McNeill herein ("McNeill" or the "Debtor") will move (the Motion") for an order approving (a) the sale of the bankruptcy estate's rights in a stream of future payments in the total amount of $312,000.00, to be paid at $3,000.00 per month over approximately the next eight (8) years (the "Payment Stream"), to Gregory S. Abrams ("Abrams" or "Buyer") for $110,000.00, and (b) certain bidding procedures in connection with the sale, including the submission of sealed bids at an in-Court auction and a break-up fee of $5,000.00.
As further described in the Motion, the bankruptcy estate's interest in the Payment Stream arises from the settlement of litigation among the Trustee, the Debtor and certain other parties. Buyer agreed to purchase the Payment Stream for $110,000.00, provided, however, that Buyer is purchasing a stream of 104 payments in the total amount of $312,000.00, i.e., including the February, March and April, 2008 payments and all others that are paid thereafter prior to the closing of the sale. The sale is subject to certain other terms and conditions as described in detail in the Motion.
The proposed sale is subject to overbid at an auction in open Court. In this regard, by the Motion the Trustee also requests that the Court approve certain sale procedures and bid protections, including that: (i) the first minimum overbid be $6,000.00; (H) any proposed bidder must make its bid in writing to the Trustee such that the bid is received by the Trustee at least three (3) business days prior to the hearing and be accompanied by a check for $6,000.00; (Hi) Should an overbid be received, the bidding procedure shall be that (a) each bidder will submit a sealed bid to the Court, and (b) the highest bid will be accepted and the next highest bid will be a backup offer; and (iv) if Buyer is not the successful bidder, that Buyer receive a break-up fee in the amount of $5,000.00.
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