|
2. At the time of its Chapter 11 petition, the
<br /> Debtor scheduled its ownership of the Property. The Debtor 8. The Bank has informed the Trustee that
<br /> 1 assigned a value of $10,250,000 to the Property, and stated obtained an MAI appraisal valuing the Property at it has
<br /> 52.9
<br /> 2 that it was subject to secured debt of $3,888,673, 2 million.
<br /> 3 3. Subsequently, in cash collateral proceedings 3 9. Trustee has ascertained that the creditors
<br /> before this Court, the Debtor submitted a broker's opinion who have played an activerole in the Chapter 11
<br /> 4 recommending that the Property should be listed for sale 4 proceedings, and particularly the Bank, Scott, and the
<br /> with an asking price of between $7,000,000 and $7,500,000, 5 largest unsecured creditors in the case, James and Susan
<br /> a estimating a market Period of between 3 and 16 months. The Colafrancesco (the "Colafrancescos"
<br /> 6 valuation was based in part on an income analysis approach, funding the Chapter 11 reorganization for aot interested in
<br /> 6
<br /> which in turn was based on actual rents collected at the period of time
<br /> necessary to stabilize the rents at the Property to
<br /> 7 Property of $35,772 per month, or $429,264 per year. 7 maximize the value of the Property and achieve a sale.
<br /> e 4. The Trustee's review of the Debtor's books a 10. In addition to the apparent lack of equity
<br /> reflects that actual rents collected at the Property s in the Property, waste generated during the Debtor's custom
<br /> 6 currently are in the range of $7,500, potentially crushing business has been stored at the Property and needs
<br /> 10
<br /> increasing to $11,000 in July 2009. 10 to be removed. The hauling and processing of the stored
<br /> waste will cost approximately
<br /> 60 00,
<br /> 11 5. In addition to substantial adjustments to the 11 that the estate does not have.S9Alsoo for$sever0al funds
<br /> value of the Property that must be made based on actual appears that the Debtor has dumped waste years, it
<br /> tz rents collected, the amount of secured debt owed against 1z at the rear of the Property instead of storing it rfor pond
<br /> the Property appears to be substantially in excess of the removal. The extent of remediation required at the
<br /> 13 debt disclosed by the Debtor. 13 Property is unknown and, until more information is
<br /> 14 6. The Debtor initially disclosed that Pacific 74 avaithe lable, the Trustee has ceased any custom crushing at
<br /> 1s State Bank (the "Bank"), which holds the senior debt
<br /> y.
<br /> secured by the Property, was owed $2,828,794. However, 15
<br /> that amount was outstanding as of the BULK WINE
<br /> 1s 9 petition date. [See i6
<br /> Claim 51 filed March 12, 2009]. Since then, the secured 11. With respect to bulk wine, the Debtor
<br /> 17 debt owed to the Bank has increased and is likely in a n scheduled bulk wine inventory with a value of approximately
<br /> range of $3,000,000. $355,000. Trustee has ascertained that the wine was not
<br /> 74 1s maintained properly and is worth a small fraction of its
<br /> 19 7. More significantly, the Debtor disclosed that 19 scheduled value. Also, sampling of the wine has indicated
<br /> the debt owed to the junior lienholder, Scott, was in a unacceptable levels of Volatile Acidity rendering a large
<br /> 20 range of $500,000. However, Scott asserts that it is owed 20 amount of the product unmarketable. The Bank has a
<br /> approximately $1,700,000. [See Claim No. 50, filed March security interest in the bulk wine to the extent that its
<br /> 21 12, 2009]. The Debtor has also scheduled tax and judgment 21 debt is not satisfied by the realproperty _
<br /> liens which further increase the secured debt. Indeed, San 22 Moreover, another creditor, Frank Crivello,collateral.
<br /> hehas filed
<br /> 22 Joaquin County has filed a secured claim for Property
<br /> of approximately $87,000 [Claim No. 32], the IRS has filed s 23 incthe mbulk of $wine000 [Claim No, 99], has a security interest
<br /> 196,
<br /> 23 a secured claim of $143,000 [Claim No. 22], and the FTB has
<br /> 24 filed a secured claim of $32,000 [Claim No. 21). A secured 24 12. The estate does not have the resources to
<br /> claim of $85,000 based on a mechanics lien has been filed repair the damage done previously to the bulk wine, or to
<br /> 25 by Central Valley Construction [Claim No. 24]. These filed 25 maintain the bulk wine properly in the future.
<br /> claims heighten the secured debt owed against the Property
<br /> 24 to an amount in excess of $5,000,000. ze 13. Section 554(a) of the Bankruptcy Code
<br /> NOTICE OF HEARING ON MOTION NOTICE OF HEARING ON MOTION
<br /> TO ABANDON REAL AND PERSONAL PROPERTY -3- TO ABANDON REAL AND PERSONAL PROPERTY
<br /> -4-
<br />
|