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IN RE JIM L. SHETAKIS DISTRIBUTING CO.

No. 2:08-cv-00832-RLH-GWF. Bankruptcy No. BK-S-00-17939-LBR.

415 B.R. 791 (2009)

In re JIM L. SHETAKIS DISTRIBUTING CO., dba Shetakis Wholesalers, Inc., Debtor. Hunt, Ortmann, Blasco, Palffy & Rossell, Inc., a California corporation, Appellant, v. Jim L. Shetakis Distributing Co., a Nevada corporation, dba Shetakis Wholesalers, Inc.; NV Lease Option LLC, a Nevada limited liability company, Appellees.

United States District Court, D. Nevada.

Filed March 30, 2009.

Attorney(s) appearing for the Case

Jeanette E. McPherson, Schwartzer & McPherson Law Firm, Las Vegas, NV, for Debtor.

OPINION

HUNT, Chief Judge.

After filing for bankruptcy under Chapter 11, Jim L. Shetakis Distributing Co. assigned all of its rights under a lease and purchase option to Nevada Lease Option ("NVLO") on March 12, 2001—a transaction outside the ordinary course of its business. Shetakis did not notify its creditors of the transfer as required by 11 U.S.C. § 363(b)(1), and may have thus violated its creditors' due process rights. In 2004, one of...

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