Summary of November 27, 2006 Hearing
On November 27, 2006, the Court held an omnibus hearing to address the following matters:
1. Motion for authority to continue to sell homes;
2. Application for retention of Sullivan & Co. as financial advisor to Debtors;
3. Bond Safeguard's and Lexon's motion to compel Debtor to assume or reject
executory contracts;
4. Motion for termination of contract of Seoung and Donna Baik;
5. Cross-motion for order converting Debtors cases to Chapter 7; and
6. Motion to amend November 13 Order authorizing payment of outstanding taxes to
Monroe Township from the proceeds of sale of the 9 properties.
Motion for authority to continue to sell homes
Several creditors filed objections to this motion based on the broad language of the motion. The creditors did not object to selling homes that were completed and did not need additional work, however, they objected to the general language of the motion to permit Debtors to continue to sell all homes without providing other critical information. Based on the objections and pre-hearing discussions, the Debtors agreed to withdraw the motion and file motions to sell specific homes as they are completed and prepared to close. In fact, such a motion has been filed with regard to 12 specific homes for which the Debtors seek authority to close and is returnable on December 11, 2006 at 1:00 p.m.
Application for retention of Sullivan & Co. as financial advisor to Debtors
This application was rescheduled until a date in January, 2007.
Bond Safeguard's and Lexon's motion to compel Debtor to assume or reject executory contracts
Three parties filed objections to this motion. The Committee filed an objection arguing that the bankruptcy case was still in its infancy and therefore it was premature to require the Debtors to decide whether or not the contracts were beneficial to the estate and should be assumed. Another bonding company filed an objection arguing that a bonding/surety contract is not executory and therefore the relief requested is not appropriate. At the hearing, counsel for Bond Safeguard and Lexon consented to an adjournment of the motion until the next omnibus hearing date on December 11, 2006 at 1:00pm.
Motion for termination of contract of Seoung and Donna Baik
The Debtors objected to this motion and the Committee joined in the objection to the extent that the relief requested by Seoung and Donna Baik was inappropriate. The Court agreed with the Debtors and the Committee and denied the motion, subject to entrynrty of a consent order which provided that the movants could take reasonable steps to protect the structure from the elements and winterize the property and that the Debtors shall file a motion to assume or reject this contract returnable on or before January 8, 2007.
Cross-motion for order converting Debtors cases to Chapter 7
The cross-motion to convert to Chapter 7 filed by North Fork Bank was rescheduled for the omnibus hearing on January 8, 2007 at 1:00 pm.
Motion to amend November 13 Order authorizing payment of outstanding taxes to Monroe Township from the proceeds of sale of the 9 properties
A certificate of consent was filed to the court and a consent order was entered to amend the November 13 Order authorizing sale of 9 properties to direct payment of outstanding taxes to Monroe Township at closing of the sale of Monroe property.
Future Court Dates
The final hearing on DIP Financing is scheduled for Friday, December 1, 2006 at 9:00 a.m.
The next omnibus hearing date is scheduled for Monday, December 11, 2006 at 1:00 p.m.
1. Motion for authority to continue to sell homes;
2. Application for retention of Sullivan & Co. as financial advisor to Debtors;
3. Bond Safeguard's and Lexon's motion to compel Debtor to assume or reject
executory contracts;
4. Motion for termination of contract of Seoung and Donna Baik;
5. Cross-motion for order converting Debtors cases to Chapter 7; and
6. Motion to amend November 13 Order authorizing payment of outstanding taxes to
Monroe Township from the proceeds of sale of the 9 properties.
Motion for authority to continue to sell homes
Several creditors filed objections to this motion based on the broad language of the motion. The creditors did not object to selling homes that were completed and did not need additional work, however, they objected to the general language of the motion to permit Debtors to continue to sell all homes without providing other critical information. Based on the objections and pre-hearing discussions, the Debtors agreed to withdraw the motion and file motions to sell specific homes as they are completed and prepared to close. In fact, such a motion has been filed with regard to 12 specific homes for which the Debtors seek authority to close and is returnable on December 11, 2006 at 1:00 p.m.
Application for retention of Sullivan & Co. as financial advisor to Debtors
This application was rescheduled until a date in January, 2007.
Bond Safeguard's and Lexon's motion to compel Debtor to assume or reject executory contracts
Three parties filed objections to this motion. The Committee filed an objection arguing that the bankruptcy case was still in its infancy and therefore it was premature to require the Debtors to decide whether or not the contracts were beneficial to the estate and should be assumed. Another bonding company filed an objection arguing that a bonding/surety contract is not executory and therefore the relief requested is not appropriate. At the hearing, counsel for Bond Safeguard and Lexon consented to an adjournment of the motion until the next omnibus hearing date on December 11, 2006 at 1:00pm.
Motion for termination of contract of Seoung and Donna Baik
The Debtors objected to this motion and the Committee joined in the objection to the extent that the relief requested by Seoung and Donna Baik was inappropriate. The Court agreed with the Debtors and the Committee and denied the motion, subject to entrynrty of a consent order which provided that the movants could take reasonable steps to protect the structure from the elements and winterize the property and that the Debtors shall file a motion to assume or reject this contract returnable on or before January 8, 2007.
Cross-motion for order converting Debtors cases to Chapter 7
The cross-motion to convert to Chapter 7 filed by North Fork Bank was rescheduled for the omnibus hearing on January 8, 2007 at 1:00 pm.
Motion to amend November 13 Order authorizing payment of outstanding taxes to Monroe Township from the proceeds of sale of the 9 properties
A certificate of consent was filed to the court and a consent order was entered to amend the November 13 Order authorizing sale of 9 properties to direct payment of outstanding taxes to Monroe Township at closing of the sale of Monroe property.
Future Court Dates
The final hearing on DIP Financing is scheduled for Friday, December 1, 2006 at 9:00 a.m.
The next omnibus hearing date is scheduled for Monday, December 11, 2006 at 1:00 p.m.
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