Now Updating
The Security National Bank of Sioux City, IA v. Vera T. Welte Testamentary Trust

Summarizing by Amir Shachmurove

In re: ARTESIAN FUTURE TECHNOLOGY, LLC

Case Type:
Business
Case Status:
Affirmed
Citation:
23-1046 (9th Circuit, Nov 28,2023) Not Published
Tag(s):
Ruling:
The U.S. Bankruptcy Appellate Panel of the Ninth Circuit (BAP) dismissed as equitably moot an appeal of the order confirming the liquidating plan of Artesian Future Technology, LLC (AFT) and approving its compromise under Rule 90191 with AFT’s principal and his parents challenged, plus denials of reconsideration motions filed, by Brian Quinlivan (BQ), an unsecured creditor, the U.S. Bankruptcy Court for the Northern District of California (BC), as BQ failed to seek a stay pending appeal, most material provisions had been consummated, priority distributions made, and clawback impractical.
Procedural context:
In July 2022, AFT, whose sole owner, managing member, and chief executive officer was Noah Katz (NK), filed its liquidating plan. Its key terms included: (1) payment in full of priority wage and benefit claims and consumer depositor claims; (2) payment in full of priority tax claims over five years; and (3) pro rata distribution of $50,000 to general unsecured creditors. In conjunction with the plan, AFT moved for authorization to settle any claims AFT might have against the members of the Katz family or others. In August 2022, BQ objected to AFT’s proposed plan, alleging that the plan and the settlement were nothing more than a bad faith attempt to wipe out NK's family’s personal liability to AFT's creditors
Facts:
Prior to its bankruptcy filing, AFT was in the business of manufacturing custom computers for gaming and cryptocurrency mining. Ultimately, AFT filed a subchapter V petition under chapter 11 in April 2022. The BC later approved an auction sale of AFT’s inventory and equipment for $140,000, with the parents’ lien attaching to the net sale proceeds. It did so after NK's parents had provided AFT with a secured loan to retain Webb and the legal and financial professionals. The loan was secured by AFT’s remaining assets, which included its computers and parts inventory and intangible assets like its name and customer list.
Judge(s):
Gary Spraker; Scott Gan; and Julia W. Brand

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!

About us in numbers

3623 in the system

3503 Summarized

5 Being Processed