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Company can’t prevail in appeal on claims of collusion

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The 7th Circuit Court of Appeals affirmed the confirmation of a sale of an ethanol plant in South Bend to a joint venture, rejecting a nonbidder’s claim that the establishment of the joint venture amounted to collusion that spoiled the auction.

Natural Chem Holdings opposed confirmation of the sale of New Energy Corp.’s ethanol plant, which it sold after entering bankruptcy. Maynards Industries Inc. and Biditup Auctions Worldwide Inc. entered a joint venture and won with a $2.5 million bid.

The bankruptcy judge denied Natural Chem’s motion to reconsider because the company hadn’t participated in the auction and thus could not have been harmed. The sale closed and later was confirmed by a District judge.

In In the matter of: New Energy Corporation; Appeal of: Natural Chem Holdings LLC, 13-2501, Judge Frank Easterbrook pointed out that Natural Chem didn’t post the bond to participate, so it wouldn’t prevail no matter what the other bidders did. It couldn’t have been injured as a creditor that stood to receive a reduced payout because Natural Chem is not among New Energy’s creditors.

“… bankruptcy courts are entitled to require cash bids, rather than complex and hard-to-value bids including leases and options. Cash bids are comparable; the sort of bid Natural Chem wanted to make could not easily have been compared against others. Natural Chem chose not to play by the auction’s rules. That was its right — but, because it did not bid, it also was not harmed by the outcome.”

“Natural Chem lacks standing for two independent reasons: it did not bid at the auction, and had it done so it would have been helped rather than harmed if the conduct of which it complains were indeed collusive,” Easterbrook wrote.

 

 

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  1. by the time anybody gets to such files they will probably have been totally vacuumed anyways. they're pros at this at universities. anything to protect their incomes. Still, a laudable attempt. Let's go for throat though: how about the idea of unionizing football college football players so they can get a fair shake for their work? then if one of the players is a pain in the neck cut them loose instead of protecting them. if that kills the big programs, great, what do they have to do with learning anyways? nada. just another way for universities to rake in the billions even as they skate from paying taxes with their bogus "nonprofit" status.

  2. Um the affidavit from the lawyer is admissible, competent evidence of reasonableness itself. And anybody who had done law work in small claims court would not have blinked at that modest fee. Where do judges come up with this stuff? Somebody is showing a lack of experience and it wasn't the lawyers

  3. My children were taken away a year ago due to drugs, and u struggled to get things on track, and now that I have been passing drug screens for almost 6 months now and not missing visits they have already filed to take my rights away. I need help.....I can't loose my babies. Plz feel free to call if u can help. Sarah at 765-865-7589

  4. Females now rule over every appellate court in Indiana, and from the federal southern district, as well as at the head of many judicial agencies. Give me a break, ladies! Can we men organize guy-only clubs to tell our sob stories about being too sexy for our shirts and not being picked for appellate court openings? Nope, that would be sexist! Ah modernity, such a ball of confusion. https://www.youtube.com/watch?v=QmRsWdK0PRI

  5. LOL thanks Jennifer, thanks to me for reading, but not reading closely enough! I thought about it after posting and realized such is just what was reported. My bad. NOW ... how about reporting who the attorneys were raking in the Purdue alum dollars?

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