- 39 - of Sale stating that DOE had purchased the mortgaged assets of the project for $1 billion at the public foreclosure sale.20 Objections to the Foreclosure Sale On July 7, 1986, ANR filed with the District Court objections to the foreclosure sale. The premise of the objections was that the sale had been improperly conducted without providing the partnership redemption rights under applicable North Dakota foreclosure statutes or equitable rights of redemption under Federal common law. On July 14, 1986, the District Court overruled ANR’s objections and confirmed the foreclosure sale. The court noted that “the legal entity foreclosed upon, the partnership, has not objected to the sale” and questioned whether ANR had standing to object. On July 16, 1986, the Marshal issued the Marshal’s Deed to DOE, and the deed was recorded in the local property records. Appeal of the Foreclosure Proceedings On June 30, 1986, ANR, as a general partner of the partnership, filed a notice of appeal in the foreclosure 20 The $1 billion was applied to pay principal of about $891 million and accrued interest of about $109 million. Although the record is silent on this point, it seems unlikely that any funds actually changed hands in this transaction. Pursuant to the indenture of mortgage, DOE was authorized to bid for and purchase the mortgaged assets, and the trustee was directed to apply the proceeds to repay DOE the amounts DOE had previously paid FFB pursuant to the guarantee agreement. The net result of these transactions would have been simply to reduce the partnership’s obligation to DOE by $1 billion.Page: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Next
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