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Schafer and Weiner Confirms Nevada Motel’s Subchapter V Chapter 11 Case After Trial

August, 2022

The complexity of a case cannot be judged by the size of the business. Here, the debtor operated an 11-room motel in McDermitt, Nevada, which closed because a neighboring landowner cut and capped its sewer line. Thereafter, the neighboring landowner acquired and began to foreclose on the deed of trust encumbering the debtor’s real estate.  John Stockdale, Jr. and Michael E. Baum developed a strategy that allowed the debtor to consensually negotiate and quickly file its Subchapter V plan of reorganization which contemplated objections to the deed of trust holder’s claim after confirmation.  Only the deed of trust holder objected to confirmation of the proposed plan.  John successfully guided the debtor through the bankruptcy process including a two-day trial on confirmation of the plan, which included factual issues of feasibility and the motel’s value.  The deed of trust holder was involved in a murder-suicide three days after the confirmation trial, adding several complications to this case.  Nevertheless, two months after the confirmation trial, the Court issued an order and opinion, which largely tracked John’s confirmation brief, confirming the debtor’s plan.  Click here for a copy of the opinion and order.