New Bankruptcy Opinion: IN RE FORBCO MANAGEMENT CORPORATION – Bankr. Court, CD California, 2016





In re: FORBCO MANAGEMENT CORPORATION, a California corporation, FORBCO SIZZLER PARTNERS, L.P., a California limited partnership, W & J HIGGINS INVESTMENTS L.P., a California limited partnership, Chapter 11 Proceedings, Debtors.

Case No. 2:12-bk-15625 RK, Jointly Administered with Case Nos. 2:12-bk-15626 RK; 2:12-bk-15627 RK; and 2:12-bk-15639 RK.

United States Bankruptcy Court, C. D. California, Los Angeles Division.

February 9, 2016.

ORDER NOT FOR PUBLICATION

ORDER ON STIPULATION REGARDING PROCEDURES TO GOVERN THE SALE OF THE DEBTORS’ RESTAURANTS

ROBERT KWAN, Bankruptcy Judge.

The court having reviewed and considered the Stipulation Regarding Continued Employment of National Franchise Sales, Inc. as Debtors’ Broker Procedures to Govern the Sale of the Debtors’ Restaurants (“Stipulation”), ECF 992, notes that the Stipulation was not noticed, served on all creditors of the bankruptcy estate and heard in compliance with Local Bankruptcy Rule 6004-1(b) and Federal Rules of Bankruptcy Procedure 6004(a) and 2002(a)(2) applicable to approval of procedures for sale of assets of the bankruptcy estates. (Although the court may have approved sale procedures for some of debtors’ restaurants heard on November 1, 2011, ECF 227, Local Bankruptcy Rule 6004-1(b)(5) requires that any sale subject to such procedures to be conducted if practicable within 30 days of the hearing on the sale procedure motion, and sale of the restaurants under the proposed sale procedures would be well beyond that 30-day period from November 1, 2011.)

Accordingly, the court declines to approve at this time the Stipulation for approval of sale procedures without compliance of Debtors and Debtors-In-Possession in the above-captioned bankruptcy cases comply with notice, service and hearing requirements of pursuant to Local Bankruptcy Rule 6004-1(b) and Federal Rules of Bankruptcy Procedure 6004(a) and 2002(a)(2). Debtors and Debtors-in-Possession are hereby ordered to comply with these rules in order for the court to approve the Stipulation, which could be noticed, served and heard on no less than 7 days notice under Local Bankruptcy Rule 6004-1(b)(1) (or less under the shortened notice procedures of Local Bankruptcy Rule 9075-1).

IT IS SO ORDERED.

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