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.
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. The Trustee reports to have received regular payments of $340,000.
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.
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.