___________________________________

Janet M. Meiburger, VA Bar No. 31842

The Meiburger Law Firm, P.C.

1493 Chain Bridge Road, Suite 201

McLean, VA 22101

(703) 556-7871

Counsel for Chapter 7 Trustee

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

ALEXANDRIA DIVISION

__________________________________________

)

IN RE: )

)

ALANS CORNER, LLC ) Case No. 17-12669-BFK

) Chapter 7

Debtor )

__________________________________________)

TRUSTEE’S MOTION FOR APPROVAL OF 

SETTLEMENT OF ADVERSARY PROCEEDING

Janet M. Meiburger, Chapter 7 Trustee, by her undersigned counsel, hereby moves, 

pursuant to Fed. R. Bankr. P. 9019, for approval of the settlement she has reached with

Discovery Station, LLC, KinderCare Education, LLC and the United States Small Business 

Administration. This settlement resolves Adversary Proceeding No. 17-01132 against Discovery 

Station, LLC (the “Adversary Proceeding”). In support of this Motion, the Trustee states as 

follows:

1. On August 3, 2017 (the “Petition Date”), Alans Corner, LLC (the “Debtor”) filed 

a voluntary petition for relief under Chapter 7 of the Bankruptcy Code. Janet M. Meiburger was 

duly appointed as Chapter 7 Trustee on August 4, 2017 and she continues to serve in that 

capacity.

1. On December 11, 2017, the Trustee filed the Adversary Proceeding against

Discovery Station, LLC (“Discovery Station”). The Complaint in the Adversary Proceeding 

alleged that on May 15, 2009, Discovery Station entered into a lease (the “Lease”) to occupy the 

property owned by the Debtor located at 43184 Town Hall Plaza, Chantilly, Virginia 20152 (the 

Case 17-12669-BFK Doc 57 Filed 08/30/18 Entered 08/30/18 13:19:25 Desc Main

 Document Page 1 of 19
2

“Property”); that Discovery Station operated a child care center at the Property; and that 

Discovery Station was in default under the Lease for nonpayment of rent. The Complaint sought 

a judgment for the unpaid rent and to obtain possession of the Property. 

2. Discovery Station did not respond to the Complaint. A default judgment was 

entered against Discovery Station on April 17, 2018, as to both the turnover of possession and 

the unpaid, but was not reduced to a money judgment for the unpaid rent, on which the Trustee 

could commence collection.

3. Subsequently, the Trustee filed a motion for entry of a money judgment against 

Discovery Station in the amount of $344,072.97, which is the minimum amount that the Trustee 

could determine to be owed in unpaid rent. This motion is pending.

4. In the meantime, the Trustee listed the Property for sale, and on May 3, 2018, an 

order was entered approving the sale of the Property (Docket No. 54). In connection with the 

sale, the Trustee also obtained approval to reject the Lease (Docket No. 52). The sale went to 

closing on July 20, 2018, and a Report of Sale was filed on August 16, 2018 (Docket No. 56).

5. Discovery Station vacated the Property prior to the closing on the sale, and the 

Property is now occupied by KinderCare Education, LLC (“KinderCare”).

6. In connection with the sale, Discovery Station and KinderCare negotiated an asset 

purchase agreement which provided for KinderCare to pay $35,000.00 for certain assets of 

Discovery Station. However, the United States Small Business Administration (“SBA”) held a 

lien on those assets.

7. Under the terms of the settlement, Discovery Station will sell the assets to 

KinderCare for $35,000.00; the SBA will release its lien for $5,000.00 of the proceeds; and the 

remaining $30,000.00 is to be paid to the bankruptcy estate to settle the Adversary Proceeding. 

Case 17-12669-BFK Doc 57 Filed 08/30/18 Entered 08/30/18 13:19:25 Desc Main

 Document Page 2 of 19
3

The terms of the sale and the settlement are incorporated into the Asset Purchase Agreement 

which is attached as Exhibit A.

8. Once the $30,000.00 payment is received, the Adversary Proceeding will be 

dismissed with prejudice. 

9. The legal standard for determining the propriety of a bankruptcy settlement is 

whether the proposed settlement is fair and equitable. “[T]he court is to consider the probability 

of the trustee’s success in any ensuing litigation, any collection difficulties, the complexity, time 

and expense of the litigation, and the interests of creditors with proper deference to their 

reasonable views.” In re Austin, 186 B.R. 397, 400 (Bankr. E.D. Va. 1995). The Trustee 

believes that the settlement is in the best interest of creditors because it reflects a fair 

compromise given the difficulty of collecting any judgment from Discover Station, which is now 

out of business, and it makes it unnecessary to incur additional expenses for the pursuit of the 

Adversary Proceeding.

WHEREFORE, Janet M. Meiburger, Chapter 7 Trustee, by counsel, hereby respectfully

requests that the Court enter an order approving the settlement of Adversary Proceeding No. 17-

01132, as described herein, and granting such other and further relief as the Court deems 

appropriate under the circumstances.

Respectfully submitted,

The Meiburger Law Firm, P.C.

Dated: August 30, 2018 By: /s/ Janet M. Meiburger

Janet M. Meiburger (VSB No. 31842)

The Meiburger Law Firm, P.C.

1493 Chain Bridge Road, Suite 201

McLean, VA 22101

(703) 556-7871

Counsel for Chapter 7 Trustee

Case 17-12669-BFK Doc 57 Filed 08/30/18 Entered 08/30/18 13:19:25 Desc Main

 Document Page 3 of 19
4

CERTIFICATE OF SERVICE

I HEREBY certify that on this 30th day of August, 2018, a true and correct copy of the 

foregoing Trustee’s Motion for Approval of Settlement of Adversary Proceeding will be served 

by ECF e-mail pursuant to the applicable Standing Order of the Court, and by first class mail, 

postage prepaid, without this certificate of service, on the following, and that a true and correct 

copy (without this certificate of service) will be served by BK Attorney Services, LLC d/b/a 

certificateofservice.com to the attached list.

William Harville, Esq.

327 W. Main Street, #3

Charlottesville, VA 22903

Counsel to Discovery Station, LLC

Justin Cabrera, Esq.

Lane Powell PC

601 SW Second Avenue, Suite 2100

Portland, OR 97204

Counsel to KinderCare Education, LLC

/s/ Janet M. Meiburger

Janet M. Meiburger

J:\Trustee\Alans Corner, LLC (17-12669)\Pleadings\Settlement.Motion.Adversary Proceeding.1.doc

Case 17-12669-BFK Doc 57 Filed 08/30/18 Entered 08/30/18 13:19:25 Desc Main

 Document Page 4 of 19
 Label Matrix for local noticing Alans Corner, LLC County of Loudoun, VA 

 0422-1 5484 Rodriguez Lane c/o Belkys Escobar 

 Case 17-12669-BFK Haymarket, VA 20169-6102 One Harrison St. SE, (MSC #06) 

 Eastern District of Virginia Leesburg, VA 20175-3102 

 Alexandria 

 Thu Aug 30 12:31:03 EDT 2018 

 EagleBank The Meiburger Law Firm PC Treasurer, County of Loudoun, Virginia 

 c/o Benjamin P. Smith 1493 Chain Bridge Road Attention: Collections/Bankrupty Div. 

 Shulman, Rogers, Gandal, Pordy & Ecker Suite 201 P O Box 347 (MSC #31) 

 12505 Park Potomac Ave, 6th Floor McLean, VA 22101-5726 Leesburg, VA 20178-0347 

 Potomac, MD 20854-6803 

 

 United States Bankruptcy Court Alan D. Berlin Business Finance Group 

 200 South Washington Street 5484 Rodriguez Lane 3930 Pender Drive #300 

 Alexandria, VA 22314-5405 Haymarket, VA 20169-6102 Fairfax, VA 22030-0986 

 Carolyn H. Berlin Discovery Station LLC Eagle Bank 

 5484 Rodriguez Lane 5313 Kernstown Ct. 7830 Old Georgetown Road 

 Haymarket, VA 20169-6102 Haymarket, VA 20169-4504 3rd Floor 

 Bethesda, MD 20814-2432 

 EagleBank Mark Albanese, Esq Shulman & Rogers 

 c/o Benjamin P. Smith, Esq. 4041 University Drive 12505 Park Potomac Ave 

 Shulman Rogers Gandal Pordy & Ecker, PA Suite 301 6th Floor 

 12505 Park Potomac Ave, 6th Floor Fairfax, VA 22030-3410 Potomac, MD 20854-6803 

 Potomac MD 20854-6803 

 

 Treasurer, County of Loudoun, Virginia U.S. Small Business Admin. US Small Business Administration 

 Attention: Collections/Bankruptcy Div. 409 3rd Street SW 409 3rd Street SW 2d Floor 

 P O BOX 347 (MSC #31) Washington, DC 20416-0005 Washington DC 20416-0005 

 Leesburg, Virginia 20178-0347 

 Barry Strickland Janet M. Meiburger John Paul Goetz 

 Barry Srickland & Co., CPA The Meiburger Law Firm, P.C. John Goetz Law, PLC 

 P.O. Box 9228 1493 Chain Bridge Road, Suite 201 86 W. Shirley Avenue 

 Richmond, VA 23227-0228 McLean, VA 22101-5726 Warrenton, VA 20186-3008 

 Judy A. Robbins 

 Office of the U.S. Trustee - Region 4 

 115 South Union Street, Room 210 

 Alexandria, VA 22314-3361 

 The following recipients may be/have been bypassed for notice due to an undeliverable (u) or duplicate (d) address. 

 (u)United States of America (d)Carolyn H Berlin (u)Stephen Karbelk 

 5484 Rodriguez Lane Century 21 New Millennium 

 Haymarket, VA 20169-6102 

Case 17-12669-BFK Doc 57 Filed 08/30/18 Entered 08/30/18 13:19:25 Desc Main

 Document Page 5 of 19
 End of Label Matrix 

 Mailable recipients 21 

 Bypassed recipients 3 

 Total 24 

Case 17-12669-BFK Doc 57 Filed 08/30/18 Entered 08/30/18 13:19:25 Desc Main

 Document Page 6 of 19
EXHIBIT A 

Case 17-12669-BFK Doc 57 Filed 08/30/18 Entered 08/30/18 13:19:25 Desc Main

 Document Page 7 of 19