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8737319.1
Approving Sale. The settlement agreement contemplated a post-sale transfer by FourLeaf of the
Note (and, therefore the deficiency balance due on the loan) to a trust created for the benefit of
the former tenants. In the absence of this settlement, the tenants would have clear claims against
the Debtor, an insolvent and likely judgment proof entity, and the tenants would continue to have
to assert difficult and expensive claims against Benjamin Weinstein, the sole member of Debtor
and the personal guarantor of FourLeaf. See the Denton Declaration. Under the tenant
settlement, after the closing of the sale of the Property, FourLeaf would transfer to the tenants a
liquidated and immediately enforceable multi-million dollar claim against Mr. Weinstein, as
guarantor.
It appears Debtor鈥檚 bankruptcy petition was filed to protect Mr. Weinstein, not to protect
the insolvent Debtor or the Property. The tenant settlement agreement, which may be the only
remedy available to the long-suffering former tenants, can be maintained by excusing FourLeaf
and the Receiver from the provision of 11 U.S.C. 搂543(a) and (b) and preventing the return of
the Property to Debtor.
G. Debtor鈥檚 Conduct Jeopardizes The Sale Of The Property
The closing for the sale of the Property is currently scheduled for January 8, 2026. This
closing is in jeopardy because of the bankruptcy stay and the provisions of 11 U.S.C. 搂543(a)
and (b). Moreover, the sale of the Property to the current buyer is precarious and may be
terminated should the Property be returned to the Debtor and the sale not closed shortly.
There is no equity in the Property because the total balance due is approximately
$14,000,000.00, while the sale is at the purchase price of $9,050,000.00. Nevertheless, the sale
Case 25-23251-MEH Doc 18-20 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Memorandum of Law Page 18 of 20
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