Summary of Recent Hearings
On March 1, 2007, the Court held a hearing on the following issue:
1. Final Order Authorizing Kara at Mt. Arlington I, LLC to obtain Post-Petition Financing: The Court granted the final order authorizing Kara at Mt. Arlington, I to incur indebtedness up to $3,452,665 from WCP Real Estate Strategies Fund, L.P. (“WCP Real Estate”). Kara at Mt. Arlington, I, LLC shall use the proceeds of the financing for the sole purpose of paying the expense items listed in the Budget. To secure prompt payment and performance of the loan, WCP Real Estate shall have valid and perfected first priority security interests and liens, superior to all other liens, claims and/or security interests on all of Kara at Mt. Arlington I’s property subject to the Permitted Liens that are listed in the Ratification Agreement. In addition, WCP Real Estate is granted an allowed superpriority administrative claim having priority in right of payment over any and all other obligations, liabilities, and indebtedness of Kara at Mt. Arlington, I provided, however, the superpriority claim shall be subject only to the Permitted Liens.
On March 5, 2007, the Court held an omnibus hearing addressing the following items:
1. Motion for Relief from Stay re: 5 Farrah Drive, Stafford, New Jersey filed by Kristen Tomey: The parties entered into a consent order terminating contract and permitting Kristen Tomey to pursue any and all claims against the bonding company.
2. Motion by K.Hovnanian (1) to Compel Debtors to Assume or Reject the Off-Site Improvement Contract; (2) Granting an Administrative Claim; and (3) Allowing K.Hovnanian to Record a Construction Lien Against Debtors’ Property: This motion was adjourned until April 9, 2007.
3. Motion to Assume Palmer Contract of Sale: The Court granted this motion and authorized the Debtors to assume the Contract of Sale.
4. Motion to Obtain Financing to Complete Construction of the Palmer home: The Court granted this motion. The order permits the Debtors to incur up to $110,000 of financing to complete construction of the Palmer home. Kara at Park Ridge, LLC will realize a net profit of approximately $154,513 from the closing of the Palmer Contract of Sale.
5. Motion for Relief from Stay filed by Guttman Family Trust, LLC: The motion was adjourned until March 19, 2007 because the parties are negotiating a resolution.
6. Motion to Sell Fourth Group of Homes: The Court granted this motion and an order will be entered consistent with previously entered orders.
The next omnibus hearing date is scheduled for March 19, 2007 at 1:00 pm in Trenton, New Jersey.
1. Final Order Authorizing Kara at Mt. Arlington I, LLC to obtain Post-Petition Financing: The Court granted the final order authorizing Kara at Mt. Arlington, I to incur indebtedness up to $3,452,665 from WCP Real Estate Strategies Fund, L.P. (“WCP Real Estate”). Kara at Mt. Arlington, I, LLC shall use the proceeds of the financing for the sole purpose of paying the expense items listed in the Budget. To secure prompt payment and performance of the loan, WCP Real Estate shall have valid and perfected first priority security interests and liens, superior to all other liens, claims and/or security interests on all of Kara at Mt. Arlington I’s property subject to the Permitted Liens that are listed in the Ratification Agreement. In addition, WCP Real Estate is granted an allowed superpriority administrative claim having priority in right of payment over any and all other obligations, liabilities, and indebtedness of Kara at Mt. Arlington, I provided, however, the superpriority claim shall be subject only to the Permitted Liens.
On March 5, 2007, the Court held an omnibus hearing addressing the following items:
1. Motion for Relief from Stay re: 5 Farrah Drive, Stafford, New Jersey filed by Kristen Tomey: The parties entered into a consent order terminating contract and permitting Kristen Tomey to pursue any and all claims against the bonding company.
2. Motion by K.Hovnanian (1) to Compel Debtors to Assume or Reject the Off-Site Improvement Contract; (2) Granting an Administrative Claim; and (3) Allowing K.Hovnanian to Record a Construction Lien Against Debtors’ Property: This motion was adjourned until April 9, 2007.
3. Motion to Assume Palmer Contract of Sale: The Court granted this motion and authorized the Debtors to assume the Contract of Sale.
4. Motion to Obtain Financing to Complete Construction of the Palmer home: The Court granted this motion. The order permits the Debtors to incur up to $110,000 of financing to complete construction of the Palmer home. Kara at Park Ridge, LLC will realize a net profit of approximately $154,513 from the closing of the Palmer Contract of Sale.
5. Motion for Relief from Stay filed by Guttman Family Trust, LLC: The motion was adjourned until March 19, 2007 because the parties are negotiating a resolution.
6. Motion to Sell Fourth Group of Homes: The Court granted this motion and an order will be entered consistent with previously entered orders.
The next omnibus hearing date is scheduled for March 19, 2007 at 1:00 pm in Trenton, New Jersey.
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