In re Point Center Financial, Inc.
Opinion
Trial Court Opinion
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
SACV 19-2505 DSF
In re POINT CENTER
FINANCIAL, INC., OPINION
Debtor.
Appellant Richard M. Kipperman, receiver for the so called “Brewer Group,” a set of three judgment creditors of Debtor Point Center Financial, Inc. (PCF), appeals the Bankruptcy Court’s order classifying his claim as unsecured.1 Pre-petition, the Brewer Group held junior liens on PCF’s property. The senior lien was held by PCF’s primary lender, Pacific Mercantile Bank (PMB). When PCF filed for bankruptcy, PMB filed a secured claim against the bankruptcy estate for slightly less than $9.7 million. Post-petition, the PMB claim was reduced twice. First, PMB sold part of the debt, valued at $4.8 million, for $3.43 million. As part of that transaction, PMB also assigned the right to pursue deeds of trust on PCF’s principal Dan Harkey’s personal property. In November 2014, the bankruptcy trustee and PMB reached a settlement on the remainder of PMB’s claim wherein PMB agreed to accept a secured claim of $3.5 million and an unsecured claim of approximately $934,000 in place of its secured claim of approximately $5.1 million.
1 The Court…