The Court-appointed Receiver of the debtor brought a motion for an order authorizing it to terminate an informal tenancy between the debtor and a related party, and to require vacant possession of the property to facilitate its sale.
The principal of the debtor opposed the motion, seeking more time to secure financing to repay the indebtedness.
The court found no credible evidence of unconditional financing and held that the Receiver could terminate the informal lease arrangement to maximize sale proceeds.
The court ordered that the tenant must be given at least 60 days' notice prior to the closing of any binding agreement of purchase and sale.
