KATAHDIN TRUST COMPANY v. STARCH PARTNERS LLC et al

Filing 42

ORDER granting 39 Motion for Order Confirming Public Sales of Certain Real and Presonal Property of Defendants Starch Partners, LLC and Starch Realty Associates, LLC Constituting the Receivership Property. By JUDGE JOHN A. WOODCOCK, JR. (MFS)

UNITED STATES DISTRICT COURT
DISTRICT OF MAINE
KATAHDIN TRUST COMPANY,
Plaintiff,
v.
STARCH PARTNERS, LLC,
STARCH REALTY ASSOCIATES, LLC,
et al.,
Defendants.

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Civil no. 1:13-cv-00062-JAW

ORDER CONFIRMING PUBLIC SALES OF CERTAIN REAL AND PERSONAL
PROPERTY OF DEFENDANTS STARCH PARTNERS, LLC AND STARCH REALTY
ASSOCIATES, LLC CONSTITUTING THE RECEIVERSHIP PROPERTY
On the Motion for Order Confirming Public Sales of Certain Real and Personal Property
of Defendants Starch Partners, LLC and Starch Realty Associates, LLC Constituting the
Receivership Property dated June 5, 2013 (the “Motion”),1 of Aurora Management Partners Inc.,
in its capacity as Court-Appointed Receiver (the “Receiver”) of the “Receivership Property,” as
that term is defined in this Court’s March 1, 2013 Order Appointing Receiver (the “Appointment
Order”) entered in this action, requesting that this Court confirm the sale of the Plant and
Equipment to LTWAW, LLC (“LTWAW”) and the Food Grade Starch Inventory to Penford
Corporation (“Penford”) free and clear of any and all liens, claims, encumbrances, and rights of
redemption, excepting current real estate and personal property taxes not yet due and payable;
After notice to Plaintiff, Katahdin Trust Company (“KTC”), Defendants, Starch Partners,
LLC, d/b/a Aroostook Starch Company (“Starch Partners”), Starch Realty Associates, LLC
(“Starch Realty”) (together, the “Starch Defendants”), the Finance Authority of Maine
(“FAME”), the Northern Maine Development Commission, Inc. (“NMDC”), and the United
1

Unless otherwise specified herein, all capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Motion.

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States Small Business Administration (“SBA”), the parties having had an opportunity to be
heard, and after a hearing before this Court/no hearing being necessary, no party having objected
to the Motion/all objections to the Motion having been withdrawn, resolved or overruled at the
hearing, for the reasons stated on the record;
The Court having previously authorized the Receiver to sell all or any portion of the
Receivership Property in accordance with the Bid and Sale Procedures approved in the Bid and
Sale Procedures Order; and
The Court finding that (a) the Receiver has complied with the Bid and Sale Procedures
and applicable law in all respects, (b) the sale of the Plant and Equipment to LTWAW pursuant
to the terms described in the Motion is reasonable and appropriate and complies with the Bid and
Sale Procedures, (c) the sale of the Food Grade Starch Inventory to Penford pursuant to the terms
described in the Motion is reasonable and appropriate and complies with the Bid and Sale
Procedures, (d) the sales of the Plant and Equipment and the Food Grade Starch Inventory and
the granting of the Motion are in the best interest of the receivership estate and its creditors, and
(e) neither LTWAW nor Penford has any interest, beneficial or otherwise, in the Receiver, nor
does the Receiver have any interest, beneficial or otherwise, in either LTWAW or Penford, the
Receiver is not affiliated with either LTWAW or Penford in any way, and the legitimate interests
of LTWAW and Penford would be unfairly frustrated if the sales are not confirmed.
IT IS, THEREFORE, HEREBY ORDERED THAT the Motion is hereby GRANTED
in all respects;
IT IS FURTHER HEREBY ORDERED THAT the Court hereby APPROVES and
CONFIRMS the sale of the Plant and Equipment to LTWAW free and clear of any and all liens,
claims, encumbrances, and rights of redemption, excepting current real estate and personal
property taxes not yet due and payable, which shall transfer, affix, and attach to the proceeds of
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the sale with the same force, validity, priority, and effect as they may have at the time of the sale
in the same order of priority as applicable to such Receivership Property, as set forth in the
Motion in all respects, and the Receiver is authorized and directed to consummate and finalize
the sale to LTWAW, to execute such documents as may be required, and to disburse the
proceeds from the sale in accordance with the provisions of the Appointment Order;
IT IS FURTHER HEREBY ORDERED THAT the Court hereby APPROVES and
CONFIRMS the sale of the Food Grade Starch Inventory to Penford free and clear of any and all
liens, claims, encumbrances, and rights of redemption, excepting current real estate and personal
property taxes not yet due and payable, which shall transfer, affix, and attach to the proceeds of
the sale with the same force, validity, priority, and effect as they may have at the time of the sale
in the same order of priority as applicable to such Receivership Property, as set forth in the
Motion in all respects, and the Receiver is authorized and directed to consummate and finalize
the sale to Penford, to execute such documents as may be required, and to disburse the proceeds
from the sale in accordance with the provisions of the Appointment Order; and
IT IS FURTHER HEREBY ORDERED THAT, in accordance with the provisions of
the Appointment Order, this Order is a final order unless (a) a timely motion for rehearing or
timely appeal as of right is filed, and (b) the order is stayed within such period upon posting a
bond in the amount of the purchase price both with respect to the sale to LTWAW and the sale to
Penford and such other conditions as may be deemed appropriate by this Court, as may be
required by applicable law or rule.
SO ORDERED.
/s/ John A. Woodcock, Jr.
JOHN A. WOODCOCK, JR.
CHIEF UNITED STATES DISTRICT JUDGE
Dated this 6th day of June, 2013
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