Corona Care Convalescent Corporation

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ORDER NOT FOR PUBLICATION
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
LOS ANGELES DIVISION
In re:
CORONA CARE CONVALESCENT
CORPORATION,
Debtor.
_________________________________
In re:
CORONA CARE RETIREMENT, INC.,
Debtor.
Case No. 2:13-bk-28497-RK
Jointly Administered with Case No. 2:13-
bk-28519-RK
Chapter 11
ORDER GRANTING MOTION TO
APPROVE STIPULATION FOR
REIMBURSEMENT TO PURCHASER
PURSUANT TO MANAGEMENT AND
OPERATIONS TRANSFER
AGREEMENT
HEARING:
DATE: June 25, 2015
TIME: 2:30 p.m.
PLACE: Courtroom 1675
255 East Temple Street
Los Angeles, CA 90012
Pending before the court is the Motion to Approve Stipulation for Reimbursement
to Purchaser Pursuant to Management and Operations Transfer Agreement (“Motion”).
ECF 275. The Motion seeks approval of a stipulation entered into between Richard K.
Diamond, the duly appointed Chapter 11 Trustee, and Corona-Let, LLC (“Stipulation”).
The Stipulation has been entered by these parties to resolve a dispute between them as
FILED & ENTERED
JUN 22 2015
CLERK U.S. BANKRUPTCY COURT
Central District of California
BY DEPUTY CLERK	bakchell
Case 2:13-bk-28497-RK Doc 300 Filed 06/22/15 Entered 06/22/15 13:15:47 Desc
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to any liability of the Trustee to Corona-Let, LLC related to certain costs incurred after this
court approved the sale of estate assets to Corona-Let, LLC on April 30, 2015. ECF 251.
The court has read and considered the moving papers and supporting Declaration
of the Trustee. ECF 287. No opposition has been filed to the Motion. The court
determines that good cause has been shown to grant the Motion and approve the
Stipulation under applicable legal standard set out in In re A & C Properties, 784 F.2d
1377, 1380-1381 (9th Cir. 1986). As set forth in the Trustee’s supporting declaration, the
settlement is to resolve a dispute between the parties over the meaning and effect of the
Management and Operations Transfer Agreement and that the settlement is based on
reasonable terms under the circumstances arising the potential for differing
interpretations of the language of the agreement relating to the estate’s obligation to
reimburse the purchaser for certain expenses which could involve parol evidence and
contract interpretation, and Trustee’s declaration satisfies his burden of showing the
reasonableness, fairness and adequacy of the settlement in light of these circumstances
which could involve some risk and expense to the estate in further litigation, which would
be reasonably minimized under the settlement. ECF 287 at 2-3. Thus, the court can
determine that the settlement is in the paramount interest of creditors in promptly settling
this dispute at a fair and reasonable sum without the need for further and potentially
expensive litigation which might needlessly drain value from the estate.
Based on the foregoing, IT IS HEREBY ORDERED as follows:
1. The court determines that oral argument is not necessary on the Motion and may
be dispensed with.
2. The Motion is taken under submission and GRANTED;
3. The Stipulation is approved for the reasons recited therein and for lack of timely
written opposition.
4. Pursuant to the approved Stipulation, Trustee is authorized to perform under the
terms of the Stipulation;
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5. The hearing on the Motion, currently set for June 25, 2015 at 2:30 p.m., is vacated
and taken off calendar. No appearances are required on June 25, 2015.
IT IS SO ORDERED.
###
Date: June 22, 2015
Case 2:13-bk-28497-RK Doc 300 Filed 06/22/15 Entered 06/22/15 13:15:47 Desc
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