BPZ Res. Inc. (fka BPZRQ)

[C C]

Straw Buyers..
....the below sales may be hard to prove as BPZRQ assets are being sold to a Caymen Island offshore entity
be hard to prove.....not be subject to the same laws as USA laws



Strawbuyer/Fictitious Bidder

The debtor sells assets to a court-approved buyer and the assets are secretly resold at a profit pursuant to a previous agreement with a third party. Where fictitious bidding is suspected, creditors should require a statement to the effect that the buyer is bidding for himself or have him state the purpose of the purchase. False statement prosecutions have been brought where this statement is false.

Examples Of Straw Buyer/Fictitious Bidder

Kickbacks: An insider agrees to sell assets to a purchaser who agrees to pay the insider a kickback. A Chapter 11 is filed to allow the insiders to complete their scheme.The purchase price disclosed in the motion to sell is less than the price agreed upon by the insider and the purchaser. When the sale is completed, the debtor receives the difference between the court-approved price and the undisclosed sale price.
Straw Sales: Insider wants to conceal his purchase of estate assets because he wants to orchestrate the sale to allow him to buy the assets for a depressed price. A fictitious purchaser or nominee is used to acquire the assets. Once the sale is consummated, the assets are transferred to the insider for a fee. Insider and purchaser do not disclose the relationship to the court. Oftentimes, both parties will make affirmative statements claiming there are no connections or agreements between them.

bankruptcy transferred assets can be free and clear of liens, claims and encumbrances – a powerful incentive for potential buyers

Why sale of assets through bankruptcy purchase of assets can happen without fear of fraudulent transfer claims following the sale


As referenced above, one of the most attractive reasons to buy and sell assets via Chapter 11 bankruptcy is the fact that the Bankruptcy Code permits buyers to purchase assets free and clear of liens, claims and encumbrances.


A sale motion will typically ask the court to establish procedures for the sale that will be approved before the sale itself is conducted. The complexity of the procedures will vary depending on the nature of the assets to be sold, and the sale itself might happen by private sale or public auction.

Even when sales happen on shortened notice, the foregoing procedures are generally followed.



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