Results of April 5 sale hearing

[Warren Agin]

Dear Harbor Hill interval owners,

The court held a hearing yesterday on my second amended sale motion. No other bidders emerged to complete with the Town of Provincetown's $8,101,620 offer to purchase the real estate. However, Lemonjuice Capital, LLC, submitted a non-binding term sheet to purchase the bankruptcy estate's current assets for $750,000, conditioned on it also receiving a management contract giving it control over the association, with terms governing repayment of its investment by the association. The proposed financial terms of the management contract were not included in the term sheet.

After an extended hearing, and careful deliberation, the Bankruptcy Court Judge supported the proposed sale to the Town of Provincetown, but held that she could not enter the specific relief requested until the termination agreement had been fully ratified and recorded with the Land Court. She continued the hearing on the sale motion generally, along with the other matters being heard by the Court that day. She did encourage me to continue with the ratification and Land Court approval process, and return to the Bankruptcy Court when the matter is ready for further orders.

As a result of the hearing, and Lemonjuice Capital, LLC's actions both prior to and after the hearing, I will be looking at the current termination process closely with both my special condominium counsel, and the Town of Provincetown's attorney and title insurer. I want to ensure that we are able to obtain the needed orders from the Land Court in as timely a manner as possible.

Regards,

Warren Agin, Chapter 7 Trustee