Christian K. Vogel (Va. Bar No. 75537)

Vogel & Cromwell, L.L.C.

8550 Mayland Drive

Suite 204

Richmond, VA 23294

(804) 728-1574

Counsel for the Trustee

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Vogel &

Cromwell, L.L.C.

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

(Richmond Division)

)

In re: )

)

MICHAEL J. MELTON, ) Case No. 15-33650-KRH

)

Debtor. )

)

TRUSTEE’S MOTION TO SELL PROPERTY OF THE ESTATE

Harry Shaia, Jr., Trustee (the “Trustee”) for the estate (the “Estate”) Michael J. Melton

(the “Debtor”), by counsel, pursuant to section 363(b) of title 11 of the United States Code (the 

“Bankruptcy Code”), moves the Court for authority to sell certain property of the Debtor’s estate

for consideration and, in support thereof, states as follows:

Background

1. On July 21, 2015, the Debtor filed for relief in the above-captioned bankruptcy 

court (the “Court”) pursuant to chapter 7 of title 11 of the United States Code (the “Bankruptcy 

Code”). 

2. The Trustee was appointed interim Trustee in the case and continues to serve in that 

capacity. 

3. This is a core proceeding over which this Court has jurisdiction under 28 U.S.C. §§ 

157(b)(2)(A), (O) and 1334. Venue is property pursuant to 28 U.S.C. § 1409. 

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Request for Relief

4. Among the assets of the Estate is a 12.756% economic interest in HAMA II, LLC 

(the “Membership Interest”).

5. HAMA II, LLC (“HAMA”) owns a strip mall known as Bowles Farm Plaza, 7500 

Jackson Arch Drive, Mechanicsville, VA 23111 (the “Property”). The appraised value of the 

Property is $4,000,000.00 based on an appraisal dated April 28, 2015, prepared by Donald Powers, 

Jr. with Integra Realty Resources. 

6. The Property secures an obligation owed to the Bank of Hampton Roads in the 

amount of $2,974,110.86, which matures on May 15, 2016. See Proof of Claim No. 4. 

Additionally, the other members of HAMA assert that HAMA owes approximately $225,000.00 

to certain members, not including the Debtor, for loans made by such members to HAMA. 

7. By letter dated December 16, 2015, David H. Creasy, CPA, HAMA’s accountant, 

informed counsel for the Trustee that the Debtor is in default under the HAMA II, LLC Operating 

Agreement (the “Operating Agreement”) by having failed to make certain required capital 

contributions totaling $26,148.99 (the “Creasy Letter”). The Creasy Letter further provided that

interest in the amount of $11,242.97 has accrued on the unpaid capital contributions pursuant to 

the terms of the Operating Agreement. A copy of the Creasy Letter is attached hereto as Exhibit 

A. 

8. Based on information provided by the Debtor, the other members of HAMA, and 

the Creasy Letter, the Trustee has agreed to sell the Membership Interest to HAMA for the 

purchase price of $15,000.00 to be paid within two (2) business days of entry of any order of this 

Court approving such sale. 

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9. Pursuant to section 363(b) of the Bankruptcy Code, the Trustee is authorized to sell 

property of the estate.

10. The Trustee believes that this sale provides the best possible return to the estate 

based on the fact that the Membership Interest constitutes a minority interest in HAMA,

approximately $37,391.96 is owed to HAMA on account of the Membership Interest, the Property 

is not fully rented, and the loan secured by the Property comes due in May, 2016.

11. The Trustee, therefore, seeks authority to sell the Debtor’s 12.756% economic 

interest in HAMA II, LLC to HAMA II, LLC for the purchase price of $15,000.00.

WHEREFORE, the Trustee respectfully requests that the Court enter an Order substantially 

in the form attached hereto as Exhibit B: (i) approving the sale of the Membership Interest for 

$15,000.00; and (ii) granting such other and further relief as is just and appropriate under the 

circumstances. 

HARRY SHAIA, JR., TRUSTEE

/s/ Christian K. Vogel

Counsel

Christian K. Vogel (Va. Bar No. 75537)

Vogel & Cromwell, L.L.C.

8550 Mayland Drive

Suite 204

Richmond, VA 23294

(804) 728-1574

Counsel for the Trustee

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CERTIFICATE OF SERVICE

I hereby certify that on the 30th day of December, 2015, a true and correct copy of 

this Trustee’s Motion to Sell Property of the Estate by first-class mail, postage prepaid or electronic 

delivery to:

Robert B. Van Arsdale, Esq.

Office of the U.S. Trustee

701 East Broad Street - Suite 4304

Richmond, VA 23219

Assistant U.S. Trustee

Michael J. Melton

8438 Pheasant Court

Ashland, Virginia 23005

David Edward Noll, Esq.

Cravens & Noll, P.C.

Suite 200

Richmond, VA 23236

Counsel for Debtor

Bernard Meyer, Jr., Esq.

MeyerGoergen P.C.

1802 Bayberry Court, Suite 200

Richmond, Virginia 23226

Mr. Larry Giannasi

P.O. Box 1555

Mechanicsville, VA 23116

William Wood, Esq.

Batzli Stiles Butler

3957 Westerre Pkwy, Suite 400

Richmond, Virginia 23233

David H. Creasy, CPA

2214 Westwood Avenue

Richmond, Virginia 23230

/s/ Christian K. Vogel

Counsel

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EXHIBIT A

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Christian K. Vogel (Va. Bar No. 75537)

Vogel & Cromwell, L.L.C.

8550 Mayland Drive

Suite 204

Richmond, VA 23294

(804) 728-1574

Counsel for the Trustee

Vogel &

Cromwell, L.L.C.

EXHIBIT B

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

(Richmond Division)

)

In re: )

)

MICHAEL J. MELTON, ) Case No. 15-33650-KRH

)

Debtor. )

)

ORDER AUTHORIZING TRUSTEE TO SELL PROPERTY OF THE ESTATE 

Upon consideration of the Trustee’s Motion to Sell Property of the Estate (the “Sale 

Motion”), wherein the Trustee seeks this Court’s authority to sell, pursuant to 11 U.S.C. § 363(b)

the Debtor’s 12.756% economic interest in HAMA II, LLC (the “Membership Interest”), the 

Court finds as follows:

1. There are sound and appropriate business reasons for the Trustee to effectuate the 

transaction described in the Sale Motion.

2. The sale of the Membership Interest pursuant to the terms described in the Sale 

Motion is permitted under 11 U.S.C. § 363(b).

3. The Debtor’s estate will benefit from the sale of the Membership Interest.

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4. Notice of the Sale Motion has been provided to the U.S. Trustee, the Debtor, and 

all creditors, such notice constituting proper and sufficient notice of the Sale Motion for the 

purposes of Fed. R. Bankr. P. 2002(a)(2) and 6007(a).

Accordingly, it is hereby:

ORDERED that the Trustee is authorized to sell the Membership Interest to HAMA II, 

LLC for the purchase price of $15,000.00 to be paid by HAMA II, LLC to the Trustee within two 

(2) business days of entry of this Order; and it is further 

ORDERED that the Trustee is authorized to execute any necessary documents and take 

any further steps necessary to transfer the Membership Interest to HAMA II, LLC.

ENTERED:

United States Bankruptcy Judge

I ASK FOR THIS:

Christian K. Vogel (Va. Bar No. 75537)

Vogel & Cromwell, L.L.C.

8550 Mayland Drive

Suite 204

Richmond, VA 23294

(804) 728-1574

Counsel for the Trustee

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LOCAL RULE 9022-1 CERTIFICATION

Pursuant to LBR 9022-1, I hereby certify that a true copy of the foregoing Order was 

endorsed by or served upon all necessary parties.

SERVICE LIST

Robert B. Van Arsdale, Esq.

Office of the U.S. Trustee

701 East Broad Street - Suite 4304

Richmond, VA 23219

Assistant U.S. Trustee

Michael J. Melton

8438 Pheasant Court

Ashland, Virginia 23005

David Edward Noll, Esq.

Cravens & Noll, P.C.

Suite 200

Richmond, VA 23236

Counsel for Debtor

Bernard Meyer, Jr., Esq.

MeyerGoergen P.C.

1802 Bayberry Court, Suite 200

Richmond, Virginia 23226

Mr. Larry Giannasi

P.O. Box 1555

Mechanicsville, VA 23116

William Wood, Esq.

Batzli Stiles Butler

3957 Westerre Pkwy, Suite 400

Richmond, Virginia 23233

David H. Creasy, CPA

2214 Westwood Avenue

Richmond, Virginia 23230

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