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WL Homes case: Buyer's motion to compel sale settled before hearing
By Jim Witters
Wilmington, Del., Sept. 28 - A motion by FC Stapleton II, LLC in the WL Homes, LLC bankruptcy case to compel the Chapter 7 trustee to comply with a sale order was settled before a scheduled hearing on the matter Wednesday in U.S. Bankruptcy Court for the District of Delaware.
Judge Brendan L. Shannon said he understood the delay in closing the sale resulted from issues with the title company selected by Stapleton rather than with Chapter 7 trustee George L. Miller.
In its Sept. 7 motion, Stapleton claimed Miller "demonstrated little interest in closing the transaction" and had done little to facilitate the transfer of title that was to occur before the end of September 2009.
The sale involves a property in Denver.
In Miller's response, filed by Shannon D. Leight on Sept. 21, the trustee stated the Stapleton account of events "reads like a novel ... filled with a lot of colorful allegations."
He stated Stapleton delayed selecting a title company and failed to have the title company prepare the appropriate documents.
"Ultimately, it was the purchaser's title company that was picked by FC Stapleton that derailed this closing from the very beginning," Leight wrote. Specifically, the title company, Heritage Title Co., refused to move the liens from the title policy.
"FC Stapleton should be filing a motion against their title company, Heritage Title Company, directing them to accept the court's sale order," Leight wrote.
Leight asked the court to order Heritage Title to issue the closing documents within five days or order Stapleton to engage another title company.
During the hearing Wednesday, the trustee told the court the matter is no longer contested. Shannon said he expects to issue a ruling by Friday.
WL Homes, an Irvine, Calif.-based homebuilder, filed for bankruptcy on Feb. 19, 2009. Its Chapter 11 case number is 09-10571.
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