SUCCESSFUL CHAPTER 11 LAND SALE: OVER $38 MILLION RECOVERED

Turning Environmental Challenges Into Financial Wins

Managing Contaminated Property Sales in Chapter 11 Bankruptcy in Los Angeles & Orange County, CA

Case Overview

In this case, a Chapter 11 debtor owned 55 acres of contaminated land previously used as an oil refinery. The contamination posed a significant threat to underground aquifers, complicating any potential sale. Despite the environmental challenges, the estate needed to find buyers for the parcels to generate financial recovery for creditors and the debtor.

Legal Approach

We worked closely with environmental experts to address the contamination issues and structured the sales to appeal to two separate buyers. Through careful legal planning and strategic negotiations, the court approved the sales, ensuring that the environmental concerns were managed while maximizing the land's value for creditors.

Outcome

The sales brought in over $38 million, significantly benefiting the estate and its creditors. By securing court approval and navigating the complexities of the contaminated property, we achieved a successful outcome in an otherwise difficult situation.

Case Significance

This case demonstrates the importance of skilled legal representation in managing environmentally impacted properties within Chapter 11 bankruptcy. It also highlights how strategic sales can benefit both the debtor and creditors, even in cases involving significant environmental issues.