August 3, 2018 – Sheldon Independent School District, Brazoria County Tax Office, Klein Independent School District and Waller County Tax Office filed with the Court an objection to Lockwood International’s Sale Motion [Docket No. 483]. The objection asserts [Docket No. 554], “The Taxing Entities object to the Sale Motion because it does not provide them with adequate protection for the payment of the 2017 and 2018 taxes….The Taxing Entities are unable to find any provision for the assumption of the pre-closing taxes in the APA by the Buyer. The Taxing Entities object to the Sale Motion to the extent it fails to adequately protect them with respect to the payment of the 2017 and 2018 taxes assessed on the real property and tangible personal property that are the subject of the Sale Motion, either by the establishing of a tax reserve or by providing for the assumption of the tax liens by the Buyer. To the extent the Sale Motion contemplates a credit bid, the Taxing Entities object unless such bid provides for the assumption of their tax claims in full by the Buyer, or otherwise provides adequate protect for their tax claims.”
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