Case 2:17-bk-20227-WB Doc 19 Filed 08/30/17 Entered 08/30/17 15:13:38 Desc Main Document Page 1 of 37 1 Daniel Weintraub - Bar #132111 James R. Selth - Bar #123420 2 Elaine V. Nguyen - Bar #256432 3 WEINTRAUB, SELTH & NGUYEN, APC 11766 Wilshire Boulevard, Suite 1170 4 Los Angeles, CA 90025 Telephone: (310) 207-1494 5 Facsimile: (310) 442-0660 6 Email: [email protected] 7 [Proposed] Attorneys for Debtor and Debtor-in-Possession, LITTLE SAIGON SUPERMARKET, LLC 8 9 UNITED STATES BANKRUPTCY COURT 10 CENTRAL DISTRICT OF CALIFORNIA - LOS ANGELES DIVISION 11 12 In re: Case No.: 2:17-bk-20227-WB Chapter 11 13 LITTLE SAIGON SUPERMARKET, LLC. NOTICE OF MOTION AND MOTION FOR 14 ORDER: Debtor and Debtor-In-Possession. 15 1. APPROVING THE SALE OF 16 SUBSTANTIALLY ALL ASSETS OF THE ESTATE FREE AND CLEAR OF LIENS, 17 CLAIMS, INTERESTS AND ENCUMBRANCES PURSUANT TO 11 18 U.S.C. §363(b)(1) AND (f)(2); AND 19 2. AUTHORIZING ASSUMPTION AND ASSIGNMENT OF UNEXPIRED 20 COMMERCIAL LEASE 21 MEMORANDUM OF POINTS AND 22 AUTHORITIES; DECLARATIONS OF PETER NGUYEN, ELAINE NGUYEN, AND 23 KIMHENG “SAM” LAO IN SUPPORT THEREOF 24 Hearing 25 Date: September 21, 2017 Time: 10:00 a.m. 26 Place: Courtroom 1375 255 E. Temple St. 27 Los Angeles, CA 90012 28 1 Case 2:17-bk-20227-WB Doc 19 Filed 08/30/17 Entered 08/30/17 15:13:38 Desc Main Document Page 2 of 37 1 TABLE OF CONTENTS 2 Page 3 MEMORANDUM OF POINTS AND AUTHORITIES……………………………………………. 7 4 I. INTRODUCTION…….………………………………………………………………………... 7 5 II. FACTUAL BACKGROUND ………………………………………….…………………….… 8 6 A. JURISDICTION …………………………………………………….…………………......... 8 7 B. GENERAL BACKGROUND...………………………………………………………………. 8 8 C. SUMMARY OF ASSETS AND ASSIGNMENT OF THE LEASE…..…………………...... 9 9 D. SUMMARY OF LIABILITIES………………………………………..………………….... 10 10 E. DEBTOR’S MARKETING EFFORTS ...………………………...…..…………………...... 10 11 III. PROPOSED SALE…………….. …………………………………….…………………………. 11 12 A. PURCHASE PRICE…………………………………………………….………..................... 11 13 B. THE TERMS OF THE PROPOSED SALE…………...………………………………………12 14 1. ASSETS……………….………………………………………………………………… 12 15 2. LEASE……...…………………………………………………………………………… 12 16 3. EXCLUDED LIABILITIES...…...………………………………………………………. 12 17 4. TRANSFER OF TITLE………………………………………………………………..… 12 18 5. CLOSING…………………………………………………………………………………13 19 IV. THE PROPOSED SALE SHOULD BE APPROVED……….…….………................................ 13 20 A. THE SALE SHOULD BE APPROVED UNDER SECTION 363(b)(1)…………………...… 13 21 B. THE MOTION SHOULD BE GRANTED UNDER 11 U.S.C. SECTION 363(f)…………… 16 22 V. ASSUMPTION AND ASSIGNMENT OF UNEXPIRED LEASE.……………………………… 17 23 VI. THE COURT HAS THE DISCRETION TO AND SHOULD WAIVE THE FOURTEEN-DAY 24 PERIOD FOR THE EFFECTIVENESS OF A SALE ORDER………….…………………………… 21 25 VII. CONCLUSION………………………………………………………………………………...… 23 26 DECLARATION OF PETER NGUYEN 27 DECLARATION OF ELAINE NGUYEN 28 -i- Case 2:17-bk-20227-WB Doc 19 Filed 08/30/17 Entered 08/30/17 15:13:38 Desc Main Document Page 3 of 37 1 2 TABLE OF AUTHORITIES 3 4 Cases 5 Otto Preminger Films. Ltd. v. Qintex Entm't., Inc. (In re Qintex Entm't Inc.), 950 F.2d 1492, 1495 (9th Cir. 1991) ... 13 6 In re Anchor Exploration Co., 30 B.R. 802, 808 (Bankr. N.D. Okla. 1983 ) ................................................................ 13 7 In re WPRV-TV, 983 F .2d 336, 340 (1st Cir.1993), New Haven Radio, Inc. v. Meister (In re Martin-Trigona), 760 F 8 .2d 1334, 1346 (2d Cir. 1985), Committee of Equity sec. Holders v. Lionel Corp. (In re Lionel Corp.), 722 F .2d 9 1063, 1069 (2d Cir. 1983): Stephens Indus., Inc., v. McClung, 789 F .2d 386, 390-91 (6th Cir. 1986)…………..13 10 In re Huntington, Ltd., 654 F .2d 578 (9th Cir. 1981): In re Walter, 83 B.R. 14, 19-20 (9th Cir. B.A.P. 1988)………. 14 11 Titusville Country club v. Pennbank (In re Titusville Country Club), 128 B.R. 396,399 (Bankr. W.D. Pa. 1991): In re 12 Walte, 83 B.R. at 19-20 ........................................................................................................................................... 14 13 Walter v. Sunwest Bank (In re Walter), 83 B.R. 14,19 (9th Cir. B.A.P. 1988) .............................................................. 14 14 In re Walter, 83 B.R. at 19-20, citing In re Continental Air Lines, Inc, 780 F .2d 1223, 1226 (5th Cir. 1986).. .......... 14 15 In re Bowman, 194 B.R. 227, 230 (Bankr. D. Ariz. 1995) ............................................................................................ 19 16 In re AEG Acquisition Corp., 127 B.R. 34, 44 (Bankr. C.D.Cal. 1991), aff'd 161 B.R. 50 (9th Cir. B.A.P. 1993) ....... 19 17 Group of Institutional Investors v. Chicago, Milwaukee, st. Paul & Pacific Railroad Co., 318 U.S. 523, 550 (1953) 19 18 In re FCX, Inc., 60 B.R. 405, 411 (Bankr. E.D.N.Y. 1986) ........................................................................................... 20 19 In re DBSI, Inc. 405 b.R. 698, 708 (Bankr. D.Del. 2009 .............................................................................................. 20 20 In re Decora Indus., 2002 U.S. Dist. LEXIS 27031, at *23 (D.Del. 2002) ................................................................... 20 21 In re Bygaph, Inc. 56 B.R. 596, 605-06 (Bankr. S.D.N.Y. 1986) .................................................................................. 20 22 Hargrave v. Twp. Of Pemberton (In re Tabone, Inc,) 175 B.R. 855, 858 (Bankr. D.N.J. 1994) .................................. 21 23 Yamaha Motor Corp., USA v. Perry Hollow Mgmt. Co., Inc. (In re Perry Hollow Mgmt. Co., Inc), 297 F. 3d 34, 41 24 (1st Cir. 2002) ......................................................................................................................................................... 22 25 Hower v. Molding sys. Eng'g Corp., 445 F .3d 935, 938 (7th Cir. 2006) ...................................................................... 22 26 In re Nature Leisure Times, LLC, 59 C.B.B .2d 121, 2007 Bankr. LEXIS 4333 (Bankr. E.D. Tex. Dec. 19, 2007) ..... 22 27 28 -ii- Case 2:17-bk-20227-WB Doc 19 Filed 08/30/17 Entered 08/30/17 15:13:38 Desc Main Document Page 4 of 37 1 2 3 Statutes 4 11 U.S.C. § 363(b)(1) ..................................................................................................................................................... 2 5 11 U.S.C. § 363(f)(2) ...................................................................................................................................................... 2 6 11 U.S.C. § 365………………………………………………………………………………………………………… 2 7 11 U.S.C. § 363 (m) .…...……………………………………………………………………………………………… 5 8 11 U.S.C. §101 et seq………………………………………………………….…………………………………...….. 8 9 11 U.S.C. § 363(f)… .................................................................................................................................................... 16 10 11 U.S.C. § 3650(2) ...................................................................................................................................................... 18 11 11 U.S.C. § 365(a)…………………………………………………………………………………………………… 18 12 11 U.S.C. § 365(b)(1)………………………………………………………………………………………… ………18 13 28 U.S.C. §§ 157………………………………………………………………………………………………… ….. 8 14 28 U.S.C. §§ 1334……………………………………………………………………………………………………... 8 15 28 U.S.C. § 157(b)(2)(A)…………………………………………………………………………………………...…. 8 16 28 U.S.C. § 157(b)(2)(O)…………………………………………………………………………………………….... 8 17 Bankruptcy Code §§ 1107……………………………………………………………………………………………....8 18 Bankruptcy Code §§ 1108…………………………………………………………………..…………………………..8 19 Federal Rule of Bankruptcy Procedure 6004(h) ............................................................................................................. 5 20 Federal Rule of Bankruptcy Procedure 6006(d) ............................................................................................................. 5 21 Federal Rule of Bankruptcy Procedure 2002(a) ........................................................................................................... 15 22 Local Bankruptcy Rule 9013-1(h)….…………………………………………………………………..….…………... 4 23 24 25 26 27 28 -iii- Case 2:17-bk-20227-WB Doc 19 Filed 08/30/17 Entered 08/30/17 15:13:38 Desc Main Document Page 5 of 37 1 TO THE HONORABLE JULIA W. BRAND, UNITED STATES BANKRUPTCY 2 JUDGE, THE OFFICE OF THE UNITED STATES TRUSTEE AND ALL OTHER 3 INTERESTED PARTIES: 4 PLEASE TAKE NOTICE that On September 21, 2017 at 10:00 a.m., before the 5 6 Honorable Julia W. Brand, United States Bankruptcy Judge, in Courtroom 1375, located at 255 7 East Temple Street, Los Angeles, CA, Little Saigon Supermarket, LLC, a California limited 8 liability company and the debtor and debtor in possession herein (“Debtor”), will hereby move 9 the Court for an Order (“Sale Order”) approving the Debtor's Motion for Order (1) Approving 10 the Sale of Substantially All Assets of the Estate Free and Clear of Liens, Claims, Interests, and 11 12 Encumbrances Pursuant to 11 U.S.C. § 363(b)(1) and (f)(2); and (2) Authorizing Assumption 13 and Assignment of Unexpired Commercial Lease (“Motion”). 14 This Motion is brought pursuant to 11 U.S.C. §§ 363 (b)(1) and (f)(2) and 11 U.S.C. 15 §365 on the grounds that the Debtor has determined that it is in the best interest of the estate and 16 17 its creditors to seek a sale of substantially all of its assets and property (“Assets”), which 18 includes a liquor license and all of Debtor’s rights and interests in that certain fifteen (15) year 19 lease (“Lease”) with HMZ Retail, LP (“HMZ”), concerning the commercial real property 20 located at 10932 Westminster Ave., Garden Grove, California