The Legacy Estate Group LLC

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
THE LEGACY ESTATE GROUP, LLC, No. 05-14659
Debtor(s).
______________________________________/
Memorandum on Motion to Approve Employment of Investment Banker
_________________
The objection of the United States Trustee to the debtor’s application to employ Chanin Capital
Partners LLC as its investment banker makes several good points. Unfortunately, three realities compel
the court to approve the application notwithstanding sound arguments against it.
The first reality is that the debtor needs the services of an investment banker urgently. There is
not enough time, especially considering the deadlines set by the court this day, to renegotiate the
agreement or find a different banker.
The second reality is that the employment is supported by the Creditors’ Committee. The
adverse aspects of the agreement stand to impact the unsecured creditors the most.
The third reality is that similar employment agreements have been found to be acceptable by
other courts. While the court does not necessarily agree with those courts, nothing in the agreement is so
far outside the realm of acceptability as to cause the court to reject the application in these
circumstances.
For the foregoing reasons, the application to employ Chanin will be approved, with two
Entered on Docket
February 28, 2006
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 05-14659 Doc# 223 Filed: 02/27/06 Entered: 02/28/06 15:14:02 Page 1 of
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provisions:
1. Nothing in this approval shall be deemed a modification of Laminar Direct Capital, L.P.'s
rights under the cash collateral agreement now in effect; and
2. Notwithstanding any provision in the employment agreement to the contrary, any party may be
heard on any matter relating to Chanin’s compensation.
Except to the extent addressed above, the objections of the U.S. Trustee and Laminar will be
overruled. Counsel for the debtor shall submit an appropriate form of order.
Dated: February 27, 2006
SAlan Jaroslovsky
U.S. Bankruptcy Judge
Case: 05-14659 Doc# 223 Filed: 02/27/06 Entered: 02/28/06 15:14:02 Page 2 of
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