In re Mohave Agrarian Grp., LLC

588 B.R. 903
CourtUnited States Bankruptcy Court, D. Nevada
DecidedMay 10, 2018
DocketCase No.: 16-10025-MKN
StatusPublished
Cited by2 cases

This text of 588 B.R. 903 (In re Mohave Agrarian Grp., LLC) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Mohave Agrarian Grp., LLC, 588 B.R. 903 (Nev. 2018).

Opinion

Honorable Mike K. Nakagawa, United States Bankruptcy Judge

The humorist Douglas Adams was fond of saying, "I love deadlines. I love the whooshing sound they make as they fly *905by." But the law more often follows Benjamin Franklin's stern admonition: "You may delay, but time will not." To paraphrase Emile Zola, deadlines are often the terrible anvil on which a legal result is forged.
Anwar v. Johnson (In re Johnson), 720 F.3d 1183, 1184
(9th Cir. 2013) (Thomas, C.J.)
The best defense is a good offense.

Vince Lombardi, former Green Bay Packers head coach2

This is a case where a reorganized debtor missed a deadline set forth in its confirmed Chapter 11 plan and then seeks to "enforce" the confirmed plan to avoid the very consequence it agreed to bear.

BACKGROUND

On January 5, 2016, Mohave Agrarian Group, LLC ("Debtor") filed a voluntary Chapter 11 petition for reorganization. (ECF No. 1).

On January 19, 2016, Debtor filed its schedules of assets and liabilities ("Schedules"). (ECF No. 17). On its property Schedule "A/B," Debtor listed an interest in approximately 8,888 acres of real property located in Arizona ("Arizona Property") valued at $16,510,000. On its creditor Schedule "D," Debtor listed Contrail Holdings, LLC ("Contrail") as having a claim secured by the Arizona Property with a balance owing of $7,700,172. On its Schedule "E/F," Debtor listed the Assessor of Mohave County ("Mohave County Assessor") as having various priority unsecured claims for unpaid real estate taxes.

On May 3, 2016, Contrail filed a proof of claim in the amount of $8,177,909.05, secured by a promissory note and deed of trust against the Arizona Property.

On June 27, 2016, Debtor filed a motion to value the Arizona Property ("Valuation Motion") and scheduled it for a hearing to be held on August 10, 2016. (ECF Nos. 94 and 98). Contrail submitted appraisal testimony valuing the Arizona Property at $9,625,000, see Declaration of Robert E. Dietrich (ECF No. 110), while the Debtor submitted appraisal testimony valuing the Arizona Property "as is" at $31,400,000. See Supplemental Declaration of Evan Ranes. (ECF No. 122).

On August 25, 2016, a stipulation was filed to coordinate discovery in connection with the Valuation Motion, as well as the Debtor's anticipated Chapter 11 plan, in addition to Contrail's anticipated motion for relief from stay. (ECF No. 130).

On September 2, 2016, Debtor filed its "First Amended Chapter 11 Plan of Reorganization Dated September 2, 2016" ("First Amended Plan"), along with a proposed disclosure statement. (ECF Nos. 136 and 137).3

*906On September 2, 2016, Contrail filed its motion for relief from stay ("Stay Relief Motion"). (ECF No. 140).

On October 5, 2016, an objection to the disclosure statement was filed on behalf of Contrail (ECF No. 176), to which a reply was filed by Debtor on October 12, 2016 (ECF No. 180).

On October 26, 2016, Debtor filed its first amended disclosure statement, along with a redlined version. (ECF Nos. 187 and 188).

On November 2, 2016, a hearing was held on approval of the proposed amended disclosure statement.

On November 9, 2016, an order was entered approving the adequacy of the amended disclosure statement and setting a plan confirmation hearing for January 23, 2017. (ECF No. 195).

On November 18, 2016, the Stay Relief Motion was noticed to be heard on the same date as the plan confirmation hearing. (ECF No. 204). On January 9, 2017, an opposition to the Stay Relief Motion was filed by Debtor (ECF No. 239), and on January 20, 2017, a reply was filed by Contrail (ECF No. 310).

On November 23, 2016, Debtor filed a motion for order authorizing the private sale of Debtor's real property to Encore Investments, LLC ("Encore Sale Motion"), free and clear of liens, which was noticed to be heard on January 23, 2017. (ECF Nos. 208 and 211). On January 12, 2017, an omnibus opposition was filed by Contrail (ECF No. 263), and on January 20, 2017, a reply was filed by Debtor (ECF No. 317).

On December 1, 2016, Debtor filed a motion for order authorizing the private sale of Debtor's real property to James D. Hammer ("Hammer Sale Motion"), which also was noticed to be heard on January 23, 2017. (ECF Nos. 219 and 222). On January 12, 2017, an omnibus opposition was filed by Contrail (ECF No. 263), and on January 20, 2017, a reply was filed by Debtor (ECF No. 317).

On January 13, 2017, a stipulation was filed to move the trial date regarding the following contested matters: First Amended Plan, Valuation Motion, Stay Relief Motion, Encore Sale Motion, and Hammer Sale Motion. (ECF No. 272). The trial was rescheduled to be held on January 26, 30 and 31, 2017. On January 17, 2017, an order was entered approving the stipulation. (ECF No. 283). On January 19, 2017, Debtor filed its redlined version of a proposed second amended plan. (ECF No. 300).

On January 26, 2017, the trial commenced.

On January 31, 2017, the trial was continued to March 13, 2017, in order to permit discovery to be conducted concerning a matter raised in the trial testimony of the Debtor's principal. (ECF No. 359).

On March 13, 2017, the parties informed the court that between January 31 and March 12, 2017 ("Trial Hiatus"), a compromise had been reached. Under the compromise, Contrail would purchase the Arizona Property from the Debtor, subject to an option allowing the Debtor to repurchase the Arizona Property in the future ("Option"). The Debtor and Contrail agreed to file no later than March 16, 2017, a motion to approve a settlement agreement and mutual releases. They also agreed that the Debtor would file a further amended plan incorporating the settlement, as well as a further amended disclosure statement. (ECF No. 407).

On March 16, 2017, Debtor's Motion for Approval of Settlement, Pursuant to Fed. R. Bankr. P. 9019, By and Among Mohave *907Agrarian Group, LLC, and Contrail Holdings, LLC ("Settlement Motion") was filed.4 On March 17, 2018, Debtor filed a Third Amended Chapter 11 Plan of Reorganization ("Third Amended Plan") and a proposed Second Amended Disclosure Statement Prepared in Connection with Debtor's Third Amended Chapter 11 Plan of Reorganization ("Second Disclosure Statement"). (ECF Nos. 408, 412, and 413).

On March 20, 2017, an order was entered granting Debtor's request to shorten time so that the Settlement Motion could be heard on an expedited basis. (ECF No. 418).

On March 22, 2017, Debtor filed a "Plan Supplement" that included various documents that were not attached to the Third Amended Plan, but which apparently were submitted for the purpose of "supplementing and giving effect to the terms of the plan." (ECF No. 423).

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Cite This Page — Counsel Stack

Bluebook (online)
588 B.R. 903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mohave-agrarian-grp-llc-nvb-2018.