Legal Question in Bankruptcy in New York

Leans

we are in the process of buying 31 natural gas wells from a Production and Marketing company, but the company that we are trying to buy these wells from is in a little bit of fiancial trouble. Basicallly they had defaulted on payments to the bank and had to declare bankrupcy. but, at the same time the bank still wants their money, and has placed leans on the wells. Is there still any way we can buy the wells even with the leans aganst them?


Asked on 3/29/01, 1:21 pm

1 Answer from Attorneys
Garry Hanlon

Re: Leans

The only way to acquire a valid answer to your

question is to contact the Bankruptcy Trustee

Once any bankruptcy is filed, title to all assets

and control over their disposition vests in the

Trustee. He must approve all sales. The only

exception is where the secured creditor (which is

usually a bank) gets permission from the Bankruptcy

Court to foreclose their lien. Again, the Trustee

would know if this is the case. If so, then the

negotiations would be with the foreclosure attorneys

or department of the Bank.

In all events, the Trustee will arrange for a sale

which accounts for the liens because he/she does not

wish these to remain after the sale of the asset

and the bank will do the same.

Read more
Answered on 6/03/01, 6:07 pm


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