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Camp Fire Usa v. Camp Fire Usa Northern Star Council

United States District Court, W.D. Missouri, Western Division

March 9, 2015

CAMP FIRE USA, Plaintiff,
v.
CAMP FIRE USA NORTHERN STAR COUNCIL, Defendant.

ORDER

FERNANDO J. GAITAN, Jr., District Judge.

Currently pending before the Court is a Notice of Filing of Proposed Distribution Report (Doc. #32) and Joint Emergency Motion for an Order Approving Sale Procedure, Authorizing Sale of All Remaining Assets, Setting Hearing Date On the Sale and Specifying the Form of Notice (Doc. #34).

In the Proposed Distribution Report, the Receiver states that it has mailed notice by first class mail to all persons or entities that the Receiver reasonably believes may have a claim against the defendant. The Notice stated that any potential creditor must submit a written notice of a claim before December 19, 2014. The Receiver also published notice of the Claims Bar Date in a local newspaper three times within a twenty-one day period prior to the Bar Date. The Receiver has attached a report which shows all the known claims, the claim amounts and the addresses of the creditors. The Receiver states that he will serve the proposed Distribution Report upon all parties and the known creditors who filed a proof of claim and any party in interest shall have until March 19, 2015 to file an objection to the Proposed Distribution.

After reviewing the report, the Court has questions regarding two of the claims. The first is A.R. Audit Services, Inc.'s claim for $2, 118.09. Under the description of the claim, it is listed only as "Garnishment." Additionally, the second claim which the Court has questions regarding is: Zimmerman Investments-MN, LLC. The claim is for $19, 896.21 and the description of the claim is "Rent." Before approving the Proposed Distribution Report, the Court would like the Receiver to provide a further explanation as to what these two claims represent.

In the Emergency Motion Seeking Approval of the Sale Procedure and Authorizing the Sale of the Remaining Assets, the Receiver seeks permission to sell eighty-eight acres of land including various buildings and personal property located in Vergas, Minnesota. The motion states that the Receiver has "conducted reasonable and appropriate due diligence regarding, inter alia, the value of the Campground, the universe of potential interested parties and the most suitable means to sell the Campground." (Emergency Motion, p. 4). The Motion further states that the Receiver has received an offer to purchase the Campground for one million two hundred thousand dollars ($1, 200, 000.00). The Receiver requests that the Court enter an order approving the following sale procedure:

a) Within three (3) business days after the entry of the Sale Procedures Order, Receiver shall serve on the following entities (except with respect to those parties receiving electronic notice), via first-class mail, a notice of the sale procedure ("Sale Notice"): all parties to this proceeding and all parties listed on the attached Exhibit B - Notice List ("Notice Parties").
b) The Notice Parties shall have 7 days from service to object to the Sale Procedure Order.
c) If the Notice Parties do not object to the Sale Procedure Order within the 7-day objection period, the Notice Parties have waived the sale and notice requirements of 28 U.S.C. § 2001(b).
d) The Receiver will sell the Assets by private sale to Covenant Capital for the Purchase Price, under the terms and conditions of the attached Purchase Agreement, or an agreement with substantially similar terms and conditions.
e) The District Court shall retain jurisdiction to hear and determine all matters arising from or related to the implementation of the Sale Procedure Order.
f) The Receiver reserves the right to modify, amend, or change the above described terms prior to any hearing held regarding the instant Motion.

The Receiver acknowledges that a private sale of realty is governed by 28 U.S.C. §2001(b), and that the statute imposes certain conditions on a private sale. The statutes states in part:

b) After a hearing, of which notice to all interested parties shall be given by publication or otherwise as the court directs, the court may order the sale of such realty or interest or any part thereof at private sale for cash or other consideration and upon such terms and conditions as the court approves, if it finds that the best interests of the estate will be conserved thereby. Before confirmation of any private sale, the court shall appoint three disinterested persons to appraise such property or different groups of three appraisers each to appraise properties of different classes or situated in different localities. No private sale shall be confirmed at a price less than two-thirds of the appraised value. Before confirmation of any private sale, the terms thereof shall be published in such newspaper or newspapers of general circulation as the court directs at least ten days ...

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