Summary of 1/29 Omnibus Hearing
On January 29, 2007, the Court held an omnibus hearing addressing several applications/motions:
1. Final Hearing authorizing Debtors to obtain credit from Plainfield Special Situations Master Fund Limited (“Plainfield”): The Court granted the final order authorizing the Debtors to incur post-petition secured indebtedness pursuant to a $5,000,000 line of credit extended by Plainfield. The Debtors shall use the $5,000,000 loan for (i) budgeted operating and other expenses; (ii) the repayment in full of Bear Stearns under the Bear Stearns DIP Facility and the Final Order; (iii) the funding of an Interest Reserve Account in the initial amount f $300,000, and, upon application and depletion of the Initial Reserve Account pursuant to the Credit Agreement, to replenish the Interest Reserve Account to the amount of $250,000; (iv) the fees of the US Trustee; (v) the fees of the Clerk of this Court; and (vi) the fees and expenses related to the Facility. To secure prompt payment and performance of the loan, Plainfield was granted a valid and perfected first priority security interest and lien on all assets of the Debtors of whatever nature that was not encumbered as of the Petition Date. In addition, Plainfield has a junior perfected lien and security interest in all of the Debtors collateral already encumbered by a valid, perfected and unavoidable lien. Kara at Mt. Arlington I, LLC is not a party to this loan and they do not have authority to borrow from Plainfield and Plainfield does not take a lien on property of Kara at Mt. Arlington I, LLC.
2. Motion to extend exclusivity period for filing a Chapter 11 plan and disclosure statement: The Court granted the motion and extended the Debtors’ exclusive period to file a Chapter 11 plan for 60 days with respect to each Debtor.
3. Motion to reject certain corporate leases with ATC Real Estate Development, Corp.: The Court granted the motion to reject suites 101N, 202N, 303N, and 215S. The Court also extended the time to assume or reject the corporate leases for suites 237S and 235S for 90 days to April 11, 2007
4. Summary Judgment motion to determine status of Debtors as “single asset real estate” entities: With the consent of all parties, the Court adjourned the hearing until February 5, 2007.
5. Motion to extend date by which Debtors must file plans of reorganization: The motion was adjourned until February 5, 2007 and is related to the resolution of the "single asset real estate" issues.
6. Adam and Emily Pearlman’s motion for an Order terminating contract: The parties will be submitting a consent order resolving the Motion.
7. Jane Napoletano’s motion for an Order terminating contract and providing a lien on the interest of the real property: The parties will be submitting a consent order resolving the Motion.
8. Valerie Fields and Natalie Meisenberg’s motion for relief from the automatic stay in order to obtain a refund of deposit monies and continue State Court litigation regarding purchase of 197 Melanie Way, Manahawkin, NJ: The parties will be submitting a consent order resolving the Motion.
9. Pamela Imbimbo’s motion to reject and void the executory contract of sale of real estate: The Court granted this motion and declared the executory contract of sale between Pamela R. Imbimbo and Horizons at Woods Landing, LLC as to real property located at 76 Jumping Brook Drive, Lakewood, New Jersey rejected and void. The Debtors did not object to Pamela Imbimbo’s motion to terminate the contract but reserved their right to pursue any damage claims they may have in the event they cannot realize an equal or greater purchase price for the home.
10. Joseph Iavarone’s motion for relief from the stay to continue with pending personal injury suit: The parties entered into a consent order granting relief from the automatic stay for the sole purpose of pursuing the action in the Superior Court of New Jersey against the Debtors for the sole purpose of establishing the Debtors’ liability in order to recover against the Debtors’ liability insurance proceeds.
The next hearing date is scheduled for February 5, 2007 at 1:00 pm in Trenton, New Jersey.
1. Final Hearing authorizing Debtors to obtain credit from Plainfield Special Situations Master Fund Limited (“Plainfield”): The Court granted the final order authorizing the Debtors to incur post-petition secured indebtedness pursuant to a $5,000,000 line of credit extended by Plainfield. The Debtors shall use the $5,000,000 loan for (i) budgeted operating and other expenses; (ii) the repayment in full of Bear Stearns under the Bear Stearns DIP Facility and the Final Order; (iii) the funding of an Interest Reserve Account in the initial amount f $300,000, and, upon application and depletion of the Initial Reserve Account pursuant to the Credit Agreement, to replenish the Interest Reserve Account to the amount of $250,000; (iv) the fees of the US Trustee; (v) the fees of the Clerk of this Court; and (vi) the fees and expenses related to the Facility. To secure prompt payment and performance of the loan, Plainfield was granted a valid and perfected first priority security interest and lien on all assets of the Debtors of whatever nature that was not encumbered as of the Petition Date. In addition, Plainfield has a junior perfected lien and security interest in all of the Debtors collateral already encumbered by a valid, perfected and unavoidable lien. Kara at Mt. Arlington I, LLC is not a party to this loan and they do not have authority to borrow from Plainfield and Plainfield does not take a lien on property of Kara at Mt. Arlington I, LLC.
2. Motion to extend exclusivity period for filing a Chapter 11 plan and disclosure statement: The Court granted the motion and extended the Debtors’ exclusive period to file a Chapter 11 plan for 60 days with respect to each Debtor.
3. Motion to reject certain corporate leases with ATC Real Estate Development, Corp.: The Court granted the motion to reject suites 101N, 202N, 303N, and 215S. The Court also extended the time to assume or reject the corporate leases for suites 237S and 235S for 90 days to April 11, 2007
4. Summary Judgment motion to determine status of Debtors as “single asset real estate” entities: With the consent of all parties, the Court adjourned the hearing until February 5, 2007.
5. Motion to extend date by which Debtors must file plans of reorganization: The motion was adjourned until February 5, 2007 and is related to the resolution of the "single asset real estate" issues.
6. Adam and Emily Pearlman’s motion for an Order terminating contract: The parties will be submitting a consent order resolving the Motion.
7. Jane Napoletano’s motion for an Order terminating contract and providing a lien on the interest of the real property: The parties will be submitting a consent order resolving the Motion.
8. Valerie Fields and Natalie Meisenberg’s motion for relief from the automatic stay in order to obtain a refund of deposit monies and continue State Court litigation regarding purchase of 197 Melanie Way, Manahawkin, NJ: The parties will be submitting a consent order resolving the Motion.
9. Pamela Imbimbo’s motion to reject and void the executory contract of sale of real estate: The Court granted this motion and declared the executory contract of sale between Pamela R. Imbimbo and Horizons at Woods Landing, LLC as to real property located at 76 Jumping Brook Drive, Lakewood, New Jersey rejected and void. The Debtors did not object to Pamela Imbimbo’s motion to terminate the contract but reserved their right to pursue any damage claims they may have in the event they cannot realize an equal or greater purchase price for the home.
10. Joseph Iavarone’s motion for relief from the stay to continue with pending personal injury suit: The parties entered into a consent order granting relief from the automatic stay for the sole purpose of pursuing the action in the Superior Court of New Jersey against the Debtors for the sole purpose of establishing the Debtors’ liability in order to recover against the Debtors’ liability insurance proceeds.
The next hearing date is scheduled for February 5, 2007 at 1:00 pm in Trenton, New Jersey.
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