This page uses extracted PDF text. Text can misread numbers, dates or table columns. Check the PDF before quoting or interpreting it. Redacted areas remain redacted.
13
聽
66.
This settlement would have transferred to the tenants a liquidated and immediately
enforceable multi-million dollar claim against Mr. Weinstein, as guarantor.
67.
It is obvious that this bankruptcy case was filed to protect Mr. Weinstein, not to
protect the insolvent Debtor or the woefully under water property of the Debtor.
68.
It was filed to thwart the closing of the sale of the Property to the current buyer
which, itself, is the condition precedent to effectuating the settlement with the tenants.
69.
The Court should require the Debtor or Mr. Weinstein to post a surety bond of no
less than $2,050,000 to adequately protect FourLeaf from the almost certain loss of the current
buyer at a price of $9,050,000 if the sale is not allowed to proceed to closing.
Cyclone Deposit and Settlement
70.
The Debtor鈥檚 CRO mistakenly asserted that the Receiver is holding the $500,000
deposit paid by Cyclone. That misstatement is surprising. Anyone with experience in commercial
real estate transactions knows and understands that deposit funds are always held by third party
escrow agents. Beyond that, had the CRO read the Receiver鈥檚 motion to approve the settlement
with Cyclone that he so vehemently criticized, he would know that the $500,000 Cyclone security
deposit is currently held in escrow with a third-party escrow agent. As is typical, the escrow agent
has indicated they will not disperse those funds to either party without mutual agreement or a court
order. I believe the Receiver needs a Court Order to effectuate a settlement.
71.
The Debtor鈥檚 CRO mistakenly asserted that these funds are property of the
bankruptcy estate. I do not believe they are property of the bankruptcy estate because they are
related to the Receiver鈥檚 sale of the Property to Cyclone. But if they were property of the
bankruptcy estate, they would be FourLeaf鈥檚 cash collateral subject to FourLeaf鈥檚 first priority
perfected deed of trust lien and by the terms of the Receivership Order.
Case 25-23251-MEH Doc 18-13 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Affidavit Page 13 of 16
ANN public copy | complete ECF 18-13 | combined source PDF 236/478
Jump to an indexed page (16 of 16)