Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

BankruptcyFeaturesLitigationThe Bankruptcy Strategist

Strawberry Fields For Sale

By Barry A. Chatz and Kevin H. Morse

On Oct. 3, 2018, the United States Bankruptcy Court for the Central District of California (Los Angeles) confirmed the Chapter 11 Liquidating Plan of Eclipse Berry Farms, LLC and its affiliated companies. Confirmation of the plan concluded a two-year journey from one of the largest strawberry growers in the country, with nearly $230,000,000 in annual revenue, to the cessation of operations and eventual liquidation.

An agricultural Chapter 11 case brings a unique set of circumstances generally not often prevalent in other Chapter 11 cases. Robert Marcus, an Illinois attorney specializing in food and agricultural matters, served as Chief Restructuring Officer of Eclipse and guided a team of professionals who transitioned more than 3,000 jobs, sold substantially all of Eclipse's assets, avoided a $22,000,000 secured lien, and produced more than $13,000,000 for the benefit of creditors in less one year after filing for bankruptcy.

The History of Eclipse

At its origins, Eclipse began with a 240-acre farming operation in Oxnard, CA, which over time expanded its farming operations into Salinas, CA (Monterey County) and Santa Maria, CA (Santa Barbara County). At its peak, Eclipse had a 2,500-plus acre farming operation and more than 3,000 employees working in offices and on farmland across its various leased farms and offices in Northern and Southern California. Eclipse did not own any of the real property on which it operated its farms or its offices, and was counterparty to more than 25 leases of real property.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.