In re Debtor L. Scott Apparel, Inc.

1 O 3 4 JS-6 6 7 United States District Court 8 Central District of California 9 10 In re: Lead Case No. 2:19-cv-01471-ODW [Consolidated with Case No. 2:19-cv- 11 L. SCOTT APPAREL, INC., 01051-ODW] Debtor. Bankruptcy Case: 2:13-bk-26021 13 HOWARD GROBSTEIN as Liquidating 14 Trustee of L. Scott Apparel, Inc., ORDER AFFIRMING THE Plaintiff, Appellee and Cross-Appellant, BANKRUPTCY COURT v. 17 LOWELL SHARRON, an individual, and BEYOND BASICS, LLC, a California 18 limited liability company, 19 Defendants, Appellants and Cross- Appellees. 20 I. INTRODUCTION Appellants and Cross-Appellees Lowell S. Sharron (“Sharron”) and Beyond 23 Basics, LLC (“Beyond Basic”) (collectively, “Appellants”) appeal the Bankruptcy 24 Court’s recharacterization of debt as equity. Appellee and Cross-Appellant Howard 25 Grobstein as Liquidating Trustee of L. Scott Apparel, Inc. (“Trustee” or “Appellee”) 26 appeal the finding that Sharron and Beyond…