Bank of Montreal v. SK Foods, LLC

ORDER DENYING RESPONDENTS’ MOTION TO TRANSFER OR DISMISS AND GRANTING IN PART BMO’S MOTION TO AMEND THE JUDGMENT

Presently before the court are the motions of Respondents SK PM Corp., Frederick Scott Salyer as trustee for the Scott Salyer Revocable Trust, and Frederick Scott Salyer in his individual capacity to stay this action or to transfer it to the Bankruptcy Court for the Eastern District of California. Also before the court is Bank of Montreal’s motion to amend the judgment to add the Respondents. For the reasons set forth below, the Respondents’ motions are denied and the bank’s motion is granted in part.

*593 I. BACKGROUND

A. Factual Background

On September 28, 2007, SK Foods LP and Bank of Montreal (“BMO”) executed a Credit Agreement by which SK Foods LP received access to $195 million of financing. 1 SK Foods LLC unconditionally guaranteed SK Foods LP’s obligations under the Agreement. See Amended and Restated Credit Agreement (“Credit Agreement”) §§ 4.1-4.2, 12, Heiser Decl. Ex. 2 at BMO 40, 93-96. 2 Scott Salyer, the president and sole owner of SK Foods LP and SK Foods LLC, signed for both companies. Id. at BMO 109. By April 16, 2009, SK Foods LP was in default,…