Luca committee asks California property owner to heed court order

By Mark Reccek

Bethlehem, Pa., Sept. 10 – Luca International Group LLC’s official equity security holders committee requested the owner of a California property to comply with a court order requiring the property to be transferred to the company, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

An order was entered by the court Sept. 2 requiring Bing Yang to execute a deed transferring residential property to Luca Operations LLC.

As previously reported, the property is at 3704 Monte Sereno Terrace, Fremont, Calif. A contract existed for current owner Yang to sell the property for $3.2 million. Because a dispute arose as to whether the property was purchased with funds owned by the Luca debtors and several disputed encumbrances held by creditors of the bankruptcy estate, Yang agreed to convey the property to the company so it can be sold free and clear of the disputed encumbrances with the equity held in escrow subject to a determination of the ownership.

“Given the proposed sales price of at least $3 million, the equity committee believes that there is substantial equity in the property and that the debtors’ bankruptcy estates have a very strong claim to that equity,” the motion said. “Therefore, enforcing the terms of the amended transfer order is critical to protecting the property from foreclosure and preserving the equity in the property for the benefit of the debtors’ estates.”

The motion also said Yang’s counsel on Sept. 2 filed a motion to withdraw as attorney. According to the motion, Yang said she will not comply with the attorney’s advice and intends to defy the court order.

A hearing on the matter is scheduled for Sept. 17.

Luca International Group, a Houston-based explorer and producer of natural gas, petroleum and related hydrocarbons, filed for bankruptcy on Aug. 6. The Chapter 11 case number is 15-34221.

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