Utilizing a rarely invoked section of New Jersey receivership law, a judgment creditor secured an order appointing a Jonathan I. Rabinowitz as a receiver in aid of execution. Jon, with the aid of RLT partner, Jeffrey A. Cooper, then assisted the judgment creditor in assessing the available assets for collection and obtained court orders to help it maximize recovery.
Specifically, after identifying claims by the judgment debtors against the judgment creditor and related entities, Jon and Jeff prosecuted a motion which permitted Jon, as receiver, to sell the estate’s interest in those claims, by way of a public sale and subject to higher and better offers, to the judgment creditor. The motion acknowledged that, if the judgment creditor was the successful bidder, through a credit bit, it would dismiss the claims asserted by the judgment debtors against the judgment creditors and its related entities.
On May 12, 2017, the Honorable Thomas C. Miller, of the Superior Court in Somerset County, approved the above procedure to sell the estate’s claims to the judgment creditor for fair value, by virtue of a credit bid. After providing the required notice, including to certain specialty markets that might be interested in bidding for the claims, Jon conducted an auction. Jon subsequently obtained the Superior Court’s approval of the sale over the objection of the judgment debtors.
