In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides insight into the benefits of bankruptcy proceedings for asset protection and sale.
Article Link: https://www.bizjournals.com/southflorida/news/2016/01/06/buildings-in-palm-beach-s-bankers-row-in-contract.html
Summary
Two office buildings on Palm Beach’s Bankers Row, owned by FJK Properties and FJK III Properties, are in the process of being sold out of bankruptcy for $21.45 million. The sale is a result of the companies filing for Chapter 11 bankruptcy in May to avoid an $11 million foreclosure judgment from General Electric Capital Corp. The buildings, which are located in a high-rent district and house wealth management firms, were marketed by HFF and are being sold to JHD Associates LLC, an affiliate of O’Conner Capital Partners. The bankruptcy plan indicates that the sale proceeds will be sufficient to repay all creditors, and Adam Stein-Sapir comments that the bankruptcy process likely allowed for a higher sale price than a foreclosure auction would have, thus preserving the owner’s equity.
- The two buildings at 230 and 240 Royal Palm Way were acquired in the 1990s for a combined $2.8 million.
- The sale price of $21.45 million is expected to cover all creditor repayments.
- Adam Stein-Sapir suggests that the bankruptcy sale process can result in better outcomes for debtors than foreclosure auctions.
Q&A
What are the advantages of selling assets through bankruptcy proceedings?
Selling assets through bankruptcy proceedings can provide several advantages, including the potential to obtain a higher sale price than at a foreclosure auction, as noted by Adam Stein-Sapir. This process can also offer a structured and court-supervised method of selling, which can attract more serious buyers and ensure that creditors are repaid in an orderly fashion. For more information on bankruptcy proceedings, visit Pioneer Funding LLC.
How does filing for Chapter 11 bankruptcy help companies avoid foreclosure?
Filing for Chapter 11 bankruptcy helps companies avoid foreclosure by providing an automatic stay that halts all collection activities, including foreclosure. This gives the company time to reorganize its debts and assets under court supervision, potentially allowing for the restructuring of debt terms and the sale of assets to repay creditors. For a guide on selling bankruptcy claims, you can refer to Pioneer Funding LLC’s guide.
Can a debtor retain any equity after repaying creditors in a bankruptcy sale?
Yes, a debtor can retain equity after repaying creditors in a bankruptcy sale if the sale proceeds exceed the amount owed to creditors. As Adam Stein-Sapir points out, the organized sale process in bankruptcy can lead to higher sale prices, potentially leaving surplus funds for the debtor after all debts are settled. For more details on the implications of bankruptcy claims trading, visit Pioneer Funding LLC’s bankruptcy news.
