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9
Purchase Agreements and Virginia Circuit Court Approval
42.
Through its marketing process, Commonwealth Commercial cultivated offers from
six prospective purchasers, including a revised offer from Cyclone of $7,500,000. Through its
marketing and call for offers process, Commonwealth Commercial effectively created a bidding
war between the two most competitive interested parties – Cyclone and the current contract
purchaser (whose initial offer was $8,000,000). Commonwealth Commercial and the Receiver
successfully pushed Cyclone to a price of $9,300,000 and the current buyer to a price of
$9,050,000. Ultimately, after consultation with FourLeaf, the Receiver accepted Cyclone’s offer
and entered into a purchase agreement with Cyclone.
43.
At no time during the receivership did the Debtor directly or through its Virginia
counsel object to the purchase agreement with Cyclone or the sale price to Cyclone other than to
endorse the Sale Order as “Seen and Objected to”.
44.
Cyclone defaulted on its obligations under the applicable purchase agreement.
After Cyclone’s first default, in an effort to salvage the deal with the highest bidder, the Receiver
and Commonwealth Commercial negotiated an amendment and reinstatement of the Cyclone
contract. Cyclone defaulted again, and after negotiations for a second amendment failed, the
Receiver, after consultation with and approval from FourLeaf, terminated the Cyclone contract.
45.
At that point, the Receiver and Commonwealth Commercial worked diligently to
get the Property under contract with the current buyer at a price of $9,050,000 (which it offered in
the bidding war with Cyclone). Knowing the first contact had been terminated and they were the
“backup”, the current buyer attempted to lower their price, but the Receiver and Commonwealth
Commercial successfully negotiated to keep their price at $9,050,000.
Case 25-23251-MEH Doc 18-13 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
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