Summary of December 26, 2006 Omnibus Hearing
On December 26, 2006, the Court held an omnibus hearing addressing the following items:
1. Debtors' Motion to pay pre-petition expenses and wages to Kara Birbach Geller & Co., Ltd.'s employees: Kara Birbach Geller & Co., Ltd. is a non-debtor affiliate and employs salespersons that assist the Debtors in connection with the sale of homes to the public. The Committee did not object to the Motion provided that the Debtors confirm that as a condition to receiving pre-petition expenses and wages, any eligible employee must currently work at Kara Birbach Geller & Co., Ltd. National City Bank and TD Banknorth also filed objections to the Debtors' motion. The Court denied the Motion without prejudice.
2. Debtors Motion to incur post-petition debt for winterization and completion of construction of Kara at Enclave II, LLC.: The Debtors entered into an agreement with First Constitution Bank, the pre-petition bank lender to Kara at Enclave II, LLC, to provide financing for winterization and completion of a residential real estate development owned by Kara at Enclave II, LLC and known as Country Meadow. The terms of the post-petition loan provided for $75,369.00 for winterization and preservation of the assets and $1,316,831.00 for completion of the construction. The court approved the portion of the financing that provided for winterization and rescheduled the remainder of the financing for the project until the hearing date scheduled for January 8, 2007.
3. Motion enjoining Atlantic City Electric from altering, refusing and/or discontinuing utility service to Debtors: This motion was resolved and a consent order will be submitted to the Court.
4. Debtors' application to pay expense reimbursement fees to Bear Stearns with respect to securing construction financing facility on a first priority lien basis: The Debtors are seeking to pay $75,000 to Bear Stearns as reimbursement for fees and expenses in connection with securing a $40 million construction financing facility. There were several objections to the Motion and as a consequence, the hearing was adjourned until January 8, 2007 at 11:00 am.
5. Re-hearing on December 14, 2006 Order allowing Debtors to sell designated homes: The Debtors moved to re-hear the motion to sell homes granted on December 14, 2006 because certain construction lien holders did not receive service and the title company refused to issue a policy to allow closings to take place. This motion was reopened and the Court granted the motion to sell designated homes.
6. Motion by Landlord, Metropark South, LLC ("Metropark"), to lift automatic stay to permit (a) physical inspection of premises; (b) initiation of legal action in surrender of premises; and (c) exercise of set-off rights against security deposit: Metropark is the landlord of certain of the Debtors' administrative offices located in Matawan, New Jersey. The Debtors do not need the offices for an effective reorganization and did not object. The Court granted this motion.
7. Motion for relief from the stay to resume superior court matters filed on behalf of Jose Gualberto, Assis Braulio and Jose Ferreira: This issue was resolved and the parties will submit a consent order allowing the civil cases to proceed with the provision that plaintiffs will not seek affirmative recovery against the estates, but rather, will seek recovery from the insurance policy in effect.
8. Barry Rosengarten's motion for reconsideration of the CourtÂs order authorizing the sale of real property located at 11 Marissa Court, Middletown, New Jersey: This motion was adjourned until January 8, 2006 at 11:00 am.
9. H&D Prime Construction's ("H&D") motion for limited relief from the stay with respect to 10 Tradewinds Lane, Sea Bright, New Jersey: H&D's motion sought relief from the automatic stay to enforce its construction lien claim filed against the real property known as 10 Tradewinds Lane, Sea Bright, New Jersey. H&D is a roofing and siding contractor that provided work and supplied materials to the Debtors. The Debtors did not object to H&D proceeding in Superior Court of New Jersey to enforce its construction lien against the property located at 10 Tradewinds Lane, Sea Bright, New Jersey. The Court granted H&DÂs requested relief from the stay.
10. Debtors' request for entry of a Bridge Order: The Debtors filed the request for entry of a Bridge Order to extend the time that the Debtors have to comply with Section 362(d)(3) of the Bankruptcy Code until the Court hears the motion to extend the date by which Debtors must file plans of reorganization or commence monthly payments to pre-petition secured creditors pursuant to Section 362(d)(3) of the Bankruptcy Code (the "Motion"). The Motion is scheduled to be heard on January 8, 2007. The Court denied the request for a Bridge Order because the 90 day time period provided in Section 362(d)(3) will not expire prior to January 8, 2007 and therefore the relief is not necessary.
The next omnibus hearing date is scheduled for January 8, 2006 at 11:00 am in Trenton, New Jersey.
1. Debtors' Motion to pay pre-petition expenses and wages to Kara Birbach Geller & Co., Ltd.'s employees: Kara Birbach Geller & Co., Ltd. is a non-debtor affiliate and employs salespersons that assist the Debtors in connection with the sale of homes to the public. The Committee did not object to the Motion provided that the Debtors confirm that as a condition to receiving pre-petition expenses and wages, any eligible employee must currently work at Kara Birbach Geller & Co., Ltd. National City Bank and TD Banknorth also filed objections to the Debtors' motion. The Court denied the Motion without prejudice.
2. Debtors Motion to incur post-petition debt for winterization and completion of construction of Kara at Enclave II, LLC.: The Debtors entered into an agreement with First Constitution Bank, the pre-petition bank lender to Kara at Enclave II, LLC, to provide financing for winterization and completion of a residential real estate development owned by Kara at Enclave II, LLC and known as Country Meadow. The terms of the post-petition loan provided for $75,369.00 for winterization and preservation of the assets and $1,316,831.00 for completion of the construction. The court approved the portion of the financing that provided for winterization and rescheduled the remainder of the financing for the project until the hearing date scheduled for January 8, 2007.
3. Motion enjoining Atlantic City Electric from altering, refusing and/or discontinuing utility service to Debtors: This motion was resolved and a consent order will be submitted to the Court.
4. Debtors' application to pay expense reimbursement fees to Bear Stearns with respect to securing construction financing facility on a first priority lien basis: The Debtors are seeking to pay $75,000 to Bear Stearns as reimbursement for fees and expenses in connection with securing a $40 million construction financing facility. There were several objections to the Motion and as a consequence, the hearing was adjourned until January 8, 2007 at 11:00 am.
5. Re-hearing on December 14, 2006 Order allowing Debtors to sell designated homes: The Debtors moved to re-hear the motion to sell homes granted on December 14, 2006 because certain construction lien holders did not receive service and the title company refused to issue a policy to allow closings to take place. This motion was reopened and the Court granted the motion to sell designated homes.
6. Motion by Landlord, Metropark South, LLC ("Metropark"), to lift automatic stay to permit (a) physical inspection of premises; (b) initiation of legal action in surrender of premises; and (c) exercise of set-off rights against security deposit: Metropark is the landlord of certain of the Debtors' administrative offices located in Matawan, New Jersey. The Debtors do not need the offices for an effective reorganization and did not object. The Court granted this motion.
7. Motion for relief from the stay to resume superior court matters filed on behalf of Jose Gualberto, Assis Braulio and Jose Ferreira: This issue was resolved and the parties will submit a consent order allowing the civil cases to proceed with the provision that plaintiffs will not seek affirmative recovery against the estates, but rather, will seek recovery from the insurance policy in effect.
8. Barry Rosengarten's motion for reconsideration of the CourtÂs order authorizing the sale of real property located at 11 Marissa Court, Middletown, New Jersey: This motion was adjourned until January 8, 2006 at 11:00 am.
9. H&D Prime Construction's ("H&D") motion for limited relief from the stay with respect to 10 Tradewinds Lane, Sea Bright, New Jersey: H&D's motion sought relief from the automatic stay to enforce its construction lien claim filed against the real property known as 10 Tradewinds Lane, Sea Bright, New Jersey. H&D is a roofing and siding contractor that provided work and supplied materials to the Debtors. The Debtors did not object to H&D proceeding in Superior Court of New Jersey to enforce its construction lien against the property located at 10 Tradewinds Lane, Sea Bright, New Jersey. The Court granted H&DÂs requested relief from the stay.
10. Debtors' request for entry of a Bridge Order: The Debtors filed the request for entry of a Bridge Order to extend the time that the Debtors have to comply with Section 362(d)(3) of the Bankruptcy Code until the Court hears the motion to extend the date by which Debtors must file plans of reorganization or commence monthly payments to pre-petition secured creditors pursuant to Section 362(d)(3) of the Bankruptcy Code (the "Motion"). The Motion is scheduled to be heard on January 8, 2007. The Court denied the request for a Bridge Order because the 90 day time period provided in Section 362(d)(3) will not expire prior to January 8, 2007 and therefore the relief is not necessary.
The next omnibus hearing date is scheduled for January 8, 2006 at 11:00 am in Trenton, New Jersey.
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