Judge denies motion to strike second TCH offer

U.S. Bankruptcy Judge Thomas J. Tucker on Tuesday, June 9, rejected a motion by the legal firm representing The Community House Association(TCH) to have the court strike a notice of an alternative sale offer from the Julie and Mark Pulte Foundation that provided an increase over what the city of Birmingham offered to pay for purchasing the iconic building in the downtown area.

Legal counsel for the Julie and Mark Pulte Charitable Foundation on Friday, June 5, flagged the court that on May 18 the foundation had made an offer of $5.5 million to acquire The Community House building and assets but sale documents filed with the court failed to note that an offer greater than the city’s offer of $5.2 million had also been made for the facility.

TCH, in a filing on Monday, June 8, informed the court that the Pulte foundation in April had discussed the purchase of The Community House and assets and made an offer of $4.5 million, while indicating that it was not interested in increasing the purchase offer.

In its motion on Monday the court was told that on May 15 the city and TCH officials finalized an agreement for the purchase and the agreement was executed on May 17. The Pulte foundation alternative purchase offer at $5.5 million was filed on May 18.

The TCH filing with the court this week also raised questions of whether sale to the Pulte group would violate deed restrictions on the property which the filing said could prevent the sale or be subject to further court action which would push the sale beyond the June 30 deadline to satisfy creditors of The Community House.

Also raised in the filing by TCH legal counsel this week was a question of whether the Pulte notice to the court met with established court rules. Legal counsel also cited in the filing a past court ruling preventing actions by what was termed “frustrated bidders.”

Judge Tucker’s denial of the request to strike the notice from the Julie and Mark Pulte Foundation said the court was treating the notice as a formal objection to the sale.

The denial ruling also noted that an in-person hearing was already scheduled for Wednesday, June 17, at which time the court would be asked to approve the sale to the city. The judge said he would permit oral arguments next Wednesday relative to the issues surrounding the Pulte notice to the court.