calumet sale motion
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INTHEUNITEDSTATESBANKRUPTCYCOURTFOR THENORTHERN DISTRICTOFILLINOIS
EASTERN DIVISIONI n r e : hapter 7CALUMETPHOTOGRAPHIC, NC., t a l . as e No. 14-08893
D e b t o r s . o i n t l y A d m i n i s t e r e dHonorable Eugene R. Wedoff
NOTICEOFMOTIONTO: SEEATTACHEDSERVICE IST
PLEASE TAKE NOTICE h a t on Tuesday, A p r i l 29, 2014, a t 9:30 a . m . , o r a ssoon t h e r e a f t e r a s c o u n s e l m a y be h e a r d , we s h a l l a p p e a r b e f o r e t h e Honorable Eugene R.Wedoff n t h e Court Room s u a l l y o c c u p i e d b y him, n t h e United S t a t e s Bankruptcy Court f o rt h e N o r t h e r n D i s t r i c t of I l l i n o i s , 2 1 9 South Dearborn S t r e e t , Chicago, I l l i n o i s , o r b e f o r e suchjudge who may be s i t t i n g i n h i s p l a c e and s t e a d , and p r e s e n t t h e a t t a c h e d T r u s t e e s Motion f o ra n Orde r(A) uthorizing a n d Approving the Sale of Certain of the Debtors A s s e t s Freea n d Clea r of Liens, Claims, n t e r e s t s , C h a rg es, a n d E n c umb r a n c e s; a n d (B) uthorizingAssumption a n d Assignment of Contracts a n d Leases, a t which time and p l a c e you ma ya p p e a r a s you s e e f i t .Dated: A p r i l 7, 2 014
C a t h e r i n e S t e e g e (01683529)M e l i s s a M. oot 62882466)Landon S . R a i f o r d (6297473)JENNER BLOCK, LP353 N. l a r k S t r e e tChicago, l l i n o i s 60654-3456
R e s p e c t f u l l y s u b m i t t e d ,CATHERINESTEEGE, o t i n d i v i d u a l l y b u t a si n t e r i m c h a p t e r 7 r u s t e e f o r t h e b a n k r u p t c y e s t a t eof each of h e above- c a p t i o n e d d e b t o r s .
BY: / s / C a t h e r i n e S t e e g eC a t h e r i n e S t e e g e
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2267168.1
SERVICE LIST
ECF NOTIFICATION:
Debtors' Counsel
Mark A. Berkoff
Nicholas M. Miller
Neal, Gerber & Eisenberg LLP
Two North LaSalle Street
Suite 1700
Chicago, IL 60602-3801
Phone: (312) 269-8072/(312)269-5654
Email: [email protected]
Email: [email protected],[email protected],[email protected],
U.S. Trustee
Patrick S Layng
Office of the U.S. Trustee, Region 11
219 S Dearborn St
Room 873
Chicago, IL 60604
Phone: (312) 886-5785Email:
Counsel for IAC Goose Island LLC
Michael K. Desmond
William G. Cross
Figliulo & Silverman, P.C.
10 S. LaSalle, Suite 3600
Chicago, IL 60603
Phone: (312) 251-4600
Email: [email protected],
[email protected], [email protected]
Counsel for Square 407 Limited Partnership
J. David Folds
Baker Donelson
901 K Street NW
Suite 900
Washington, Dc 20001
Phone: (202) 508-3441
Email: dfolds@bakerdonelson
Counsel for BankDirect Capital Finance, LLC
Andrew D. Arons
Williams, Bax & Saltzman, P.C.
221 N. LaSalle Street, Ste. 3700
Chicago, IL 60601
Phone: (312) 372-3311
Email: [email protected], wisneski@wbs-
law.com, [email protected]
Counsel for RedRidge Finance Group, LLC,Credit Value Partners, LP, Credit Value Fund
III, LP and Credit Value Distressed Duration
Fund, LP,Chase Paymentech LLC
Peter A. Siddiqui
Kenneth J. Ottaviano
Katten Muchin Rosenman LLP
525 West Monroe Street, Ste 1900
Chicago, IL 60661-3693
Phone(312)902-5200
Fax: (312) 902-1061/(312) 577-4662
Email:[email protected],[email protected]
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SERVICE LIST
22267168.1
Counsel for BankDirect Capital Finance, LLC
Louis J. Gale
Williams, Bax & Saltzman, P.C.
221 N. LaSalle Street, Ste. 3700Chicago, IL 60601
Phone: (312) 372-3311
Email: [email protected],
[email protected];KMorrissey@lewis-
kappes.com)
Counsel for Canon U.S.A.
Nancy A. Peterman
Rebecca D. Rosenthal
Greenberg Traurig, LLP77 West Monroe, Suite 3100
Chicago, IL 60601
Phone: (312) 456-8400
Email: [email protected],
Counsel for George L. Eastman Co., LLC
Francis X Buckley
Thompson Coburn LLP
55 East Monroe, 37th FloorChicago, IL 60603
Phone: (312) 580-2210
Fax: (312) 782-1040
Email: [email protected],
Counsel for Experian Marketing Solutions,
Inc. and CheetahMail, Inc.
Joseph D. Frank
Reed HeiligmanFrank Gecker LLP
325 North La Salle, St. Suite 625
Chicago, IL 60654
Phone: (312) 276-1400
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SERVICE LIST
32267168.1
VIA U.S. MAIL
Chase Paymentech, LLC
Attn: Lazonia M. Clark
Business Analyst
14221 Dallas Pkwy, Bldg II
Dallas, TX 75254
Phone: (801) 823-3410
Email: [email protected]
Counsel for BankDirect Capital Finance, LLC
David J. Strubbe
Williams, Bax & Saltzman, P.C.
221 N. LaSalle Street, Ste. 3700
Chicago, IL 60601
Phone: (312) 372-3311
Counsel for American Express Travel Related
Services Co., Inc.
Gilbert B. WeissmanBecket & Lee LLP
POB 3001
Malvern, PA 19355-0701
Phone (610) 644-7800
Fax: (610) 993-8493
Email: [email protected]
Douglas B. Rosner
Goulston &Storrs
A Professional Corporation
400 Atlantic AvenueBoston, Massachusetts 02110-3333
Phone: (617) 482-1776
Fax: (617) 574-4112
Email: [email protected]
Nancy O. Garelick, Esq.
SILVER AND ARSHT
1860 Bridgegate Street, Suite 100
Westlake Village, CA 91361Phone: (805) 495-4044, x107
Fax: (805) 494-4704
Email: [email protected]
Jordan B. Everakes
Zacks & Freedman, PC
235 Montgomery Street, Suite 400
San Francisco, CA 94104Telephone: 415-956-8100
Facsimile: 415-288-9755
Email: [email protected]
Creditor Calumetphoto.com
Thomas Martin
14101 Furlong Way
Germantown, MD 20874-6128
Counsel for MLK Associates, LLC
Benjamin D Pelton
2300 Clarendon Blvd Suite 700
Arlington, VA 22201
Phone: (703) 524-0770
Fax: (703) 522-4570
Email:[email protected]
Creditor Calumetphoto.com
Steven L. Goldberg
McNamee Hosea
6411 Ivy Lane, Suite 200
Greenbelt, MD 20770
Duncan SmithDK Mallon
107 Adell Pl
Elmhurst, IL 60603
Phone: (312) 344-0812
Fax: (312) 662-6141
Email: [email protected]
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SERVICE LIST
42267168.1
Cambridge
Charles Park Two, LLC
c/o Principal Real Estate Investors
Attn: Asset Management East States Region
801 Grand AvenueDes Moines, IA 50392-1370
Chicago- Bliss/Chicago Cherry
Cherry LLC
Attn: David Kahnweiler
c/o Colliers, Bennett & Kahnweiler Inc.
9700 West Bryn MawrRosemont, IL 60018
Chicago- Rush
Dee Wells
Draper and Kramer, Inc,
As Managing Agent for Landlord
33 West Monroe Street
Chicago, IL 60603-5401
Phone: (312) 346-8600
Fax: (312) 855-9358
Ft. Lauderdale
Gateway Shoppes, LLC
c/o Carl McCormack
P.O. Box 460579
Ft. Lauderdale, FL 33346
Los Angeles
George L. Eastman1350 More Ranch Road
Santa Barbara, CA 93111-2922
Phone: (805) 964-9908
Fax: (805) 692-2811
New York
Gregg Scherken20 West 22 Associates LLC
c/o ABS Partners Real Estate, LLC
200 Park Avenue South
New York, NY 10003
New York
Elk 22 Realty LLC
Attn: Bernard H. Kayden
550 Mamaroneck Avenue, Suite 404
Harrison, NY 10528
Oak Brook
Teachers' Retirement System of the State of
Illinois
c/o Commonwealth Realty Advisors, Inc.
Attn: Executive Vice President
Suite 3000Chicago, IL 60603
Oak Brook
James T. Mayer
Holland & Knight LLP
131 S. Dearborn Street
30th Floor
Chicago, IL 60603
Oak Brook
Attn: C. Michelle Panovich, Principal
The Oaks of Oak Brook Shopping Center
c/o Mid- America Asset Management Inc.
Two Mid-America Plaza, Third Fl.
Oakbrook Terrace, IL 60181
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SERVICE LIST
52267168.1
Philadelphia
Cedar Riverview LP
C/o Cedar Shopping Centers, Inc.
44 South Bayles Avenue, Ste. 304
Port Washington, NY 11050
Rockville
Kristen Dean, Property Manager
Congressional Village Associates, LLC
P.O. Box 1094
Warrenton, VA 20188
San Diego
Attn: Cathy Hall, Vice President
Escondido Gateway 03, LP
By, ACF Property Management Inc.
12411 Ventura Boulevard
Studio City, CA 91604
Phone: (818) 505-6777
Fax: (818) 505-6778
San Diego
Sara Hall
GDA Real Estate Service, LLC
8301 East Prentice Avenue, Ste 210
Greenwood Village, CO 80111
San Francisco
Robert C. KeeneyKeeney Family Trust
100 Bush Street, Ste 1300
San Francisco, CA 94104
Phone: (415) 675-7000
Santa Ana
Northern McFadden Ltd Partnershipc/o Bristol Group, Inc.
400 Montgomery Street, Ste 400
San Francisco, CA 94104
Tyson Corner
Mattias D. Renner
National Real Estate Management Corp.
Agent for MLK Associates, LLC
1830 Craig Park Ct., #101
St. Louis, MO 63146-4149
Tyson Corner
National Real Estate Management Corp.
9986 Manchester Road
St. Louis, MO 63122
Phone: (314) 878-5545
Fax: (314) 835-1068
Washington DC
Square 407 Limited Partnership
c/o Boston Properties, Inc.
401 9th Street, N.W. Suite 700
Washington, D.C. 20004
Joseph T. Moldovan
Chair, Bankruptcy and Restructuring Practice
Morrison Cohen LLP
909 Third Avenue
New York, NY 10022
Tel: 212.735.8603
Cell: 917.693.9682
Fax: 917.522.3103
Jay HalperanAmal U. Dave
Arent Fox LLP1717 K Street, NW
Washington, DC 20036-5342Phone: 202-857-6336
Fax: 202-857-6395
[email protected]@arentfox.com
Cisco Systems Capital Corporation1111 Old Eagle School Road
Wayne PA 19087
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SERVICE LIST
62267168.1
MidAmerican Energy Company
Attn: Unregulated Retail Srvcs. ElectricContract Administration
4299 NW Urbandale Drive
Urbandale, IA 50322
Paetec/Windstream
4001 Rodney Parham Road
Little Rock, AR 72212
Latisys
Attn: Dave Stevens
393 Inverness ParkwayEnglewood, CO 80122
Latisys-Chicago
1808 Swift Drive, Building C
Oak Brook, IL 60523
DAVIS ALARMS, INC.147 W 25TH ST
NEW YORK, NY 10001-7205
Heiler Software Corporation2100 Seaport Blvd
Redwood City, CA 94063
Internal Revenue ServiceMail Stop 5110 CHI
230 South Dearborn
Chicago, IL 60604
San Francisco Tax CollectorP.O. Box 7427
San Francisco, CA 94120-7427
Illinois Department of RevenueBankruptcyLevel 7-425
100 West Randolph
Chicago, IL 60601
Illinois Department of Revenue
Bankruptcy
P O BOX 64338
CHICAGO IL 60664-0338
Internal Revenue Service
Centralized Insolvency OperationsPO BOX 7346
PHILADELPHIA PA 19101-7346
New York City Department of Finance
25 Elm P.aceBrooklyn, NY 11201
The Money Store Investment CorporationPO Box 162247
Sacramento, CA 95816
Key Equipment Finance Inc.10000 S. McCaslin Blvd
Superior, CO 80027
Cisco Systems Capital CorporationLease Processing Center
1111 Old Eagle School Road
Wayne, PA 19087
US Bancorp Manifest Funding1450 Channel Pkwy
Marshall, MN 56258
National City Commercial CapitalCorporation
995 Dalton Avenue
Cincinnati, Ohio 45203
Banc of America Leasing & Capital, LLC231 S. LaSalle Street
Chicago, IL 60697
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SERVICE LIST
72267168.1
International Paper Company
33 Lewis RdBinghampton, NY 13905
THE ROYAL BANK OF SCOTLAND
PLC, AS SECURITY TRUSTEECORPORATE AND STRUCTURED
FINANCE
250 Bishopsgate,London EC2M 4AA, United Kingdom
CSC
2711 Centerville Road
Suite 400
Wilmington, DE 19808
New York Department of Revenue
State Department of Taxation and Finance
W.A. Harrisman Campus
Albany, NY 12227-0125
NEW YORK CITY
Andrew French
Department of FinanceMunicipal Building
1 Centre StreetNew York, New York 10007
Washington DC Department of Tax and
Revenue
P.O. Box 96384Washington, DC 20090-6384
Florida Department of Revenue
5050 W. Tennessee St.Tallahassee, FL 32399-0125
Maryland Department of Revenue
Rhonda AllmondRevenue Administration Center
Comptroller of Maryland
110 Carroll St.Annapolis, MD 21411
Virginia Department of TaxationOffice of Customer Services
P.O. Box 26627
Richmond, VA 23261-6627
Massachusetts Department of Revenue436 Dwight Street
Springfield, MA 01103
Pennsylvania Department of RevenuePatsy Ricciuti
Dept.28046
Harrisburg, PA 17128-0406
County of Santa Barbara (California)1332 Anacapa St.
Santa Barbara, CA 93101
City of New York
General Correspondence
NYC Department of FinanceCorrespondence Unit
One Centre Street, 22nd Floor
New York, NY 10007
NYC Department of Finance
66 John Street, Room 104
New York, NY 10038
Orange County (California)
City Hall300 East Chapman Avenue
Orange California 92866
California
John Kingbury450 N. Street, CA 95814
Sacramento, CA 95814
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SERVICE LIST
82267168.1
Department of Finance, Administrative Officer,
915 L Street, Suite 1280,Sacramento, CA 95814
Illinois Department of Revenue
PO Box 19034Springfield, IL 62794-9034
Chicago Dept. of FinanceTax Division
333 S. State St., Room 300
Chicago, IL 60604
Vaughn Barber
Reich Brothers10618 Pico Blvd.
Los Angeles, CA 90064
Phone: 310-248-2979 (Ext. 705)Cell: 714-512-0799
Fax: 213-383-5985Email: [email protected]
Thomas E. Pabst (President)
Kathleen ParkerHYPERAMS, LLC
1501 Michael Drive
Wood Dale, Il 60191Phone: 847-499-7033
Cell: 847-530-5676Cell: 262-903-0602 (Parker)Email: [email protected]
David Barkoff (Director of Sales)
Ross Dove
Heritage Global Inc.12625 High Bluff Drive
San Diego, CA 92130
Phone: 650-649-0147
Cell: 650-759-2242
Fax: 866-644-9908Email: [email protected]
Steve Papillo
Capital Recovery Group, LLC
1654 King StreetEnfield, CT 06082
Phone: 800-300-6852
Cell: 860-250-0050
Email: [email protected]
Bill Vining (Vice President BusinessDevelopment)
Adam Kirilichin
Optoro5001 Forbes Blvd.
Lanham, MD 20706
702 H. Street, NW Ste 200
Washington, DC 20001Phone: 770-558-3841
Cell: 404-789-6485Fax: 301-850-4779
Email: [email protected]
Elaine Tseng (Senior Associate)ASM Capital
7600 Jericho Turnpike
Suite 302Woodbury, NY 11797
Phone: 516-422-7114
Fax: 516-422-7118Email: [email protected]
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SERVICE LIST
92267168.1
Kenneth L. Baum
Cole, Schotz, Meisel, Forman & Leonard, P.A.25 Main Street
Hackensack, NJ 07601
Phone: 201-525-6327Cell: 201-463-3246Fax. 201-678-6327
Email: [email protected]
Eric Mehl, Partner
Columbus Camera Group, Inc.55 E. Blake Avenue
Columbus, Ohio 43202
Phone: 614-267-0686Cell: 614-477-9930Email: [email protected]
Harrison Budd
Digital Services & EQ Supervisor
555 Minnesota St.San Francisco, CA 94107
Phone: 415-550-8732
Email: Harrison. [email protected]
Adam Prybelski (Omni-Channel Sales
Manager)
National Camera Exchange9300 Olson Memorial Highway
Golden Valley, MN 55427
Phone: 763-591-5183
Email: [email protected]
Chris Taylor
EQ Supervisor250 Hudson St. 11
thFloor
NY, NY 10013
Phone: 212-924-4410
Email: [email protected]
Eric Weiler
New Mill Capital Holdings, LLC1550 N. Cleveland Avenue
Suite 208
Chicago, IL 60610
Phone: 312-489-8493Fax: 312-878-6779
Email: [email protected]
Gerard S. Catalanello (Partner) Counsel for
Sleepy (?)Duane Morris LLP
1540 Broadway
New York, NY 10036-4086Phone: 212-692-1037
Cell: 347-205-2920
Fax: 212-672-1173Email: [email protected]
Jonathan Hezghian5526 South Soto St.
Vernon, CA 90058
Cell: 310-310-1015Email: [email protected]
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SERVICE LIST
102267168.1
Mitchell H. Cohen
DJM Real Estate, LLC (an affiliate of GordonBrothers Group)
1350 Avenue of the Americas
Suite 2802New York, NY 10019Phone: 212-218-6806
Home: 561-988-9432
Cell: 617-901-0382Email: [email protected]
Nyk Westbrook
Bid It Up11426 Ventura Blvd.
Studio City, CA 91604
Phone: 818-508-7034Fax: 818-508-3025Email: [email protected]
Marc FentonStatman Harris & Eyrich, LLC
200 West Madison Street
Suite 3820Chicago, IL 60606
Direct: 312-251-9961Phone: 312-263-1070Fax: 312-263-1201
Eamil: [email protected]
Adam RussellNew Mill Capital Holdings, LLC
1550 N. Cleveland Avenue.
Chicago, Il 60610Phone: 312-489-8325
Fax: [email protected]
James Fralick (VP Merchandising)
Henrys Photo-Video-Digital119 Church Street
Toronto, ON M5C 2G5
Phone: 416-941-0565
Fax: 416-868-0243
Email: [email protected]
Michelle Salazar
Jeff TanenbaumTiger Group
340 N. Westlake Blvd.
Suite 260
Westlake Village, CA 91362
Phone: 805-497-4999Cell: 818-326-4909 (JT0
Cell: 214-893-4169 (MS)Fax: 805-497-2211
Email: [email protected]
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SERVICE LIST
112267168.1
Lisa Fournier
c/o Southern Photo125 E. NASA Blvd.,
Melbourne, FL 32901
Phone: 321-254-4224Cell: 321-720-7378Email: [email protected]
Counsel to Great American
John Sieger
Paige Barr
Katten, Muchin Rosenman LLP525 W. Monroe St.Chicago, IL 60661
Phone: 312-902-5494
Phone: 312-902-5644Fax 312-902-1016
Email: [email protected]
Venice Gamble11426 Ventura Blvd.
2ndFloorStudio City, CA 91604Phone: 818-508-7034 (x215)
Fax: 818-508-3025
Email: [email protected]
Bill Melvin Jr.Jennifer Steward
Liquid Asset Partners LLC4060 29
thStreet
Grand Rapids, MI 49512
Phone: 616-719-5917
Fax: 616-719-5918Email: [email protected]
Sid Lambersky
Joseph Checchio
Seth Marks (VP)
Stormy SimonOverstock.com
6350 South 3000 EastSalt Lake City, Utah 84121
Phone: 801-441-9351
Phone: 312-643-0829/312-316-3235Email: [email protected]
Dartise Johnson (Lead
Photographer/Manager)
Dartise Photography
2100 South Marshall BlvdChicago, IL 60623
Phone: 773-255-5221Fax: 312-377-1679
Email: [email protected]
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SERVICE LIST
122267168.1
Derrick Kouyoumjian
PO Box 391745Cambridge, MA 02139
Phone: 617-905-1505
Morten Kucey
SB Capital Group1010 Northern Blvd. Suite 340
Great Neck, New York 11021
Phone: 703-518-5038Cell: 516-521-6439Office: 516-945-3420
Fax: 708-518-5368
Email: [email protected]
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UNITEDSTATESBANKRUPTCYCOURTFORTHENORTHERNDISTRICTOF LLINOIS
EASTERN IVISIONI n r e : h a p t e r 7CALUMETPHOTOGRAPHIC, NC. t a l . ase No. 14-08893
D e b t o r s . o i n t l y AdministeredHonorable Eugene R. Wedoff
TRUSTEE SMOTIONFORANORDER A)AUTHORIZINGAND APPROVINGTHESALEOFCERTAINOFTHEDEBTORS SSETSFREEAND CLEAR OF IENS,
CLAIMS, NTERESTS,CHARGES, NDENCUMBRANCES;AND B)AUTHORIZINGASSUMPTIONAND ASSIGNMENTOFCONTRACTSAND LEASES
C a t h e r i n e S t e e g e , not i n d i v i d u a l l y b u t a s T r u s t e e t h e Trustee ) of t h e j o i n t l ya d m i n i s t e r e d above- c a p t i o n e d d e b t o r s c o l l e c t i v e l y t h e Debtors ), hereby moves h i s Court o ran Order p u r s u a n t t o 1 1 U.S.C. 1 0 5 a ) , 363 a nd 365 a nd F e d e r a l Rules of BankruptcyProcedure 2002, 6004, 6006 and 9014, a) u t h o r i z i n g a nd approving t h e s a l e of e r t a i n of h eDebtors' a s s e t s f r e e a nd c l e a r of l i e n s , c l a i m s , i n t e r e s t s , c h a r g e s an d encumbrances; a nd (b )a u t h o r i z i n g assumption an d assignment of l e a s e s a nd c o n t r a c t s under s e c t i o n 365 of t h eBankruptcy Code i n c o n n e c t i o n w i t h such s a l e . I n s u p p o r t of t h i s Motion, t h e T r u s t e er e s p e c t f u l l y s t a t e s a s f o l l o w s :
JURISDICTION1 . This Court h as u r i s d i c t i o n t o c o n s i d e r a nd d e t e r m i n e t h i s Motion p u r s u a n t t o 28
U.S.C. 1334. This m a t t e r i s a c o r e p r o c e e d i n g p u r s u a n t t o 2 8 U.S.C. 5 7 b ) 2 ) A ) and t h eT r u s t e e c o n s e n t s t o t h e e n t r y of a i n a l o r d e r . Venue i s p r o p e r b e f o r e t h i s Court p u r s u a n t t o 28U.S.C. 1 4 0 8 and 1409.
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2 . The s t a t u t o r y and p r e d i c a t e f o r t h e r e l i e f r e q u e s t e d h e r e i n a r e s e c t i o n s 363, 365,and 105(a) of h e Bankruptcy Code, and F e d e r a l Rules of Bankruptcy Procedure 2002, 0 0 4 ,6 0 0 6 , nd 9014.
BACKGROUND3 . On March 1 2 , 2 0 1 4 t h e P e t i t i o n D a t e ) , each of h e Debtors i l e d a p e t i t i o n f o r
r e l i e f under c h a p t e r 7 f i t l e 1 1 of h e U n i t e d S t a t e s Code. T h e r e a f t e r , t h e U n i t e d S t a t e sT r u s t e e f o r t h e Northern D i s t r i c t of l l i n o i s a p p o i n t e d C a t h e r i n e S t e e g e a s i n t e r i m c h a p t e r 7T r u s t e e .
4 . P r i o r t o t h e P e t i t i o n Date, t h e Debtors conducted b u s i n e s s a s amulti-channels p e c i a l t y r e t a i l e r of high-end photography and v i d e o equipment. The b u s i n e s s s e r v e dp r o f e s s i o n a l and amateur p h o t o g r a p h e r s t h r o u g h , a m o n g o t h e r t h i n g s , ( a) o u r t e e n b r i c k - a n d -m o r t a r r e t i l s t o r e s t h r o u g h o u t t h e U n i t e d S t a t e s , ( b ) n e-commerce w e b s i t e , and( c ) ustomer- d i r e c t s a l e s . Debtor Calumet P h o t o g r a p h i c , I n c . , was h e only o p e r a t i n g e n t i t y ,and empl oyed over 2 0 0 US- b a s e d p e r s o n n e l .
5 . S i n c e t h e P e t i t i o n Date, h e D e b t o r s ' o p e r a t i o n s have been s h u t down. S h o r t l ya f t e r t h e P e t i t i o n Date, h e T r u s t e e was c o n t a c t e d b y CalPhoto US, LLC n e n t i t y r e c e n t l yformed b y c e r t a i n former p r i n c i p a l s of h e Debtors t h e P u r c h a s e r ) , r e g a r d i n g t h e p o s s i b i l i t yof u r c h a s i n g a s s e t s a s s o c i a t e d w i t h f i v e of h e D e b t o r s ' r e t i l s t o r e s and t h e a s s u m p t i o n ofc e r t a i n of h e D e b t o r s ' l i b i l i t i e s and o b l i g a t i o n s . The T r u s t e e and t h e P u r c h a s e r engaged i ne x t e n s i v e n e g o t i a t i o n s and t h e T r u s t e e h a s a c c e p t e d t h e P u r c h a s e r ' s o f f e r , s u b j e c t t oBankruptcy Court a p p r o v a l , t o p u r c h a s e c e r t a i n a s s e t s and t o assume m a n y of h e D e b t o r s 'l i b i l i t i e s and o b l i g a t i o n s f o r Two i l l i o n E i g h t Hundred and Twenty F i v e Thousand D o l l a r s( 2,825,000) p l u s t h e assumption of e r t a i n l i b i l i t i e s and t h e d e l i v e r y a t c l o s i n g of l a i m sw a i v e r s from t h e h o l d e r s of i g h t y p e r c e n t i n a m o u n t of h e Debtors' s u p p l i e r c l a i m s ( t h e
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Purchase P r i c e ) . The T r u s t e e and t h e Purchaser have memorialized t h i s agreement i n anAsset Purchase A greem ent t h e APA ) h a t i s a t t a c h e d h e r e t o as E x h i b i t A .
SUMM RYOFRELIEFREQUESTED6. By h i s Motion, h e T r u s t e e s e e k s a p p r o v a l f o r t h e proposed s a l e of e r t a i n of h e
Debtors' a s s e t s t o t h e Purchaser under t h e terms of t h e APA and f r e e and c l e a r of l i e n s ,c l a i m s , i n t e r e s t s , c h a r g e s , and encumbrances under 3630 o f t h e Bankruptcy Code. I na d d i t i o n , t h e T r u s t e e seeks t o a s s i g n t o t h e Purchase c e r t a i n l e a s e s and e x e c u t o r y c o n t r a c t sp u r s u a n t t o 11 U.S.C. 365.
TRUSTEE'SMARKETINGEFFORTS7 . Immediately upon her appointment, t h e T r u s t e e was c o n t a c t e d b y numerous
p a r t i e s i n t e r e s t e d i n purchasing c e r t a i n of t h e Debtors' a s s e t s . S h e has p r o v i d e d i n v e n t o r yl i s t s and c o p i e s o f e a s e s t o al l p a r t i e s w h o have c o n t a c t e d h e r . She has s e r v e d a copy of h i sMotion o n a l l of h e s e p a r t i e s . She a l s o has m a d e arrangements t o allow i n t e r e s t e d p a r t i e s t oview t h e Debtors' s s e t s .
THE ROPOSEDASSETPURCHASE GREEMENT8 . The T r u s t e e and t h e Purchaser have e n t e r e d i n t o t h e APA nder which, u b j e c t t o
t h i s C o u r t ' s a p p r o v a l , t h e P u r c h a s e r , f o r t h e Purchase P r i c e , w i l l purchase t h e f o l l o w i n g a s s e t s( c o l l e c t i v e l y , t h e Assets o r t h e Purchased A s s e t s ) , o n an as i s , whereas b a s i s w i t h o u tr e p r e s e n t a t i o n s o r w a r r a n t i e s o f ny k i n d :
( i ) a l l Inventory l o c a t e d a t (a) Oak B r ook , I l l i n o i s , ( b ) Chicago (GooseI s l a n d ) , I l l i n o i s ( B l i s s S t r e e t and Cherry S t r e e t ) , (c) P h i l a d e l p h i a , P e n n s y l v a n i a , (d) S anF r a n c i s c o , C a l i f o r n i a and (e) Washington, D.C. from which t h e Debtors were c o n d u c t i n g t h eBusiness as of h e P e t i t i o n Date ( A s s u m e d Locations ) but excluding any i n v e n t o r y l o c a t e d i nt h e warehouse i n c l u d e d as p a r t o f h e Chicago (Goose I s l a n d ) , I l l i n o i s ( B l i s s S t r e e t and CherryS t r e e t ) l o c a t i o n ;
To h e e x t e n t t h e Motion and t h e terms of h e APA o n f l i c t , t h e APA o n t r o l s . Defined termsn o t d e f i n e d i n t h i s Motion s h a l l have t h e meaning s e t f o r t h i n t h e APA.
E
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( i i ) a l l f u r n i t u r e , f i x t u r e s and equipment ( FF&E ) o c a t e d a t t h e AssumedL o c a t i o n s and a t D e b t o r ' s Cambridge, M a s s a c h u s e t t s l o c a t i o n ; p r o v i d e d , however t h a t t h e S e l l e rmay o n t i n u e t o use t h e FF&E t t h e D e b t o r ' s Cambridge M a s s a c h u s e t t s l o c a t i o n u n t i l such t i m ea s S e l l e r completes t h e s t o r e - c l o s i n g s a l e s b e i n g conducted a t t h e Cambridge M a s s a c h u s e t t sl o c a t i o n and p r o v i d e d f u r t h e r t h a t P u r c h a s e r s h a l l remove t h e FF&E t i t s own expense fromCambridge M a s s a c h u s e t t s w i t h i n f i v e (5) u s i n e s s Days of e c e i v i n g n o t i c e from S e l l e r t o do o ;
i i i ) a l l e x t e r i o r s i g n a g e l o c a t e d a t t h e Excluded L o c a t i o n s ; p r o v i d e d , however,t h a t t h e S e l l e r may c o n t i n u e t o use such e x t e r i o r s i g n a g e u n t i l such time a s S e l l e r completes t h es t o r e - c l o s i n g s a l e s b e i n g conducted a t t h e Excluded L o c a t i o n s and p r o v i d e d f u r t h e r t h a tP u r c h a s e r s h a l l remove such e x t e r i o r s i g n a g e a t i t s own expense assuming a l l L i a b i l i t i e s i nc o n n e c t i o n t h e r e w i t h and i n a manner c o n s i s t e n t w i t h any Lease f o r such Excluded L o c a t i o n ;
( i v ) a l l Leases f o r t h e Assumed L o c a t i o n s and t h e Cambridge P a r k i n g LotLeases t h e Assu m e d L e a s e s ) , t o g e t h e r w i t h t h e D e b t o r s ' i n t e r e s t i n a l l s e c u r i t y d e p o s i t s l i s t e don Schedule 2 . 1 ( b ) ( i v ) , and a l l permanent i x t u r e s , improvements and a p p u r t e n a n c e s t h e r e t o anda s s o c i a t e d w i t h such Assumed L e a s e s ;
(v) a l l Executory C o n t r a c t s r e l a t e d t o t h e D e b t o r s ' o p e r a t i o n of h e B u s i n e s sa t t h e Assumed L o c a t i o n s ( t h e Assum e d C o n t r a c t s ) , t o g e t h e r w i t h t h e D e b t o r s ' i n t e r e s t i n a l lu t i l i t y d e p o s i t s l i s t e d on Schedule 2 . 1 ( b ) ( v ) w i t h r e s p e c t t o any of h e Assumed L o c a t i o n s ;
( v i ) a l l of h e i n t a n g i b l e p r o p e r t y of h e Debtors l i s t e d on Schedule 2 . 1 ( b ) ( v i ) ;( v i i ) (A) l l r i g h t s i n and t o I n t e l l e c t u a l P r o p e r t y r i g h t s o w ned o r l i c e n s e d by
any of h e Debtors i s t e d on Schedule 2 . 1 ( b ) ( v i i ) , t o t h e b r o a d e s t e x t e n t S e l l e r i s p e r m i t t e d by l awt o t r a n s f e r such I n t e l l e c t u a l P r o p e r t y ( t h e Purchased I n t e l l e c t u a l Property ), i n c l u d i n g ,w i t h o u t l i m i t a t i o n , hardware and s o f t w a r e r e l a t e d t h e r e t o and customer i s t s and(B) o t h e e x t e n tsuch I n t e l l e c t u a l P r o p e r t y may o t be t r a n s f e r r e d t o P u r c h a s e r , S e l l e r s h a l l be deemed t o haveg r a n t e d t o P u r c h a s e r an e x c l u s i v e , r o y a l t y f r e e r i g h t and l i c e n s e t o use t h e I n t e l l e c t u a l P r o p e r t yfrom and a f t e r t h e C l o s i n g Date, o t h e b r o a d e s t e x t e n t p e r m i t t e d by law, b u t s u b j e c t t o a non-e x c l u s i v e g r a n t of a l i c e n s e t o S e l l e r t o c o n t i n u e t o u s e (1) h e Calumet n a m e and t r a d e m a r k i nt h e conduct of e r a d m i n i s t r a t i o n of h e D e b t o r ' s Bankruptcy Cases (such n o n - e x c l u s i v e l i c e n s es h a l l e x p i r e upon t h e c l o s i n g of t h e Bankruptcy Cases) and (2) any p a t e n t s i n c l u d e d i n t h ePurchased I n t e l l e c t u a l P r o p e r t y f o r t h e s o l e p u r p o s e of s e l l i n g I n v e n t o r y a t t h e ExcludedL o c a t i o n s u n t i l t h e e a r l i e r of(A) uch time t h a t any I n v e n t o r y r e l a t i n g t o such p a t e n t s h a s beens o l d by H i l c o , and(B) h e e n t r y of h e f i n a l d e c r e e c l o s i n g t h e Bankruptcy Cases;
( v i i i ) a l l c r e d i t c a r d holdback payments and o t h e r c r e d i t s due from D e b t o r s 'c r e d i t c a r d p r o c e s s o r s l i s t e d on Schedule 2 . 1 ( b ) ( v i i i ) ;
( i x ) a l l p r e p a i d c h a r g e s and expenses s e t f o r t h on Schedule 2 . 1 ( b ) ( i x ) p a i d byS e l l e r o r any of t h e Debtors e x c l u s i v e l y i n c o n n e c t i o n w i t h o r r e l a t i n g e x c l u s i v e l y t o t h ePurchased A s s e t s ;
(x) a l l r i g h t s under i n s u r a n c e p o l i c i e s r e l a t i n g t o c l a i m s f o r l o s s e s r e l a t e de x c l u s i v e l y t o t h e Purchased A s s e t s ;
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( x i ) c o p i e s of a l l books and r e c o r d s p e r t a i n i n g t o any of t h e f o r e g o i n g( p r o v i d e d , however, h a t o r i g i n a l books and r e c o r d s w i l l be p r o v i d e d w i t h i n f i ve (5) B u s i n e s sDays f t e r e n t r y of h e f i n a l d e c r e e c l o s i n g t h e Bankruptcy C a s e s ) ;
( x i i ) a l l customer f i l e s , d a t a and documents ( i n c l u d i n g c r e d i t i n f o r m a t i o n ) ,email a d d r e s s e s , t r a n s a c t i o n h i s t o r i e s , customer h i s t o r i e s , and t h e e - m a i l system and d a t a ownedo r p o s s e s s e d by any of h e Debtors s of h e P e t i t i o n Date;
( x i i i ) a l l Permits used by S e l l e r t h a t r e l a t e t o t h e As s u m e d L o c a t i o n s , t h eB u s i n e s s o r any of h e Purchased A s s e t s , t o t h e e x t e n t a s s i g n a b l e ( t h e Assigned P e r m i t s ) ; and
(xiv) a l l g o o d w i l l a s s o c i a t e d w i t h t h e Purchased A s s e t s .9 . The APA l s o p r o v i d e s t h a t t h e P u r c h a s e r w i l l assume c e r t a i n of t h e D e b t o r s '
l i a b i l i t i e s i n c l u d i n g :
( i ) a l l L i a b i l i t i e s of e l l e r o r any of h e Debtors under t h e Assumed L e a s e sand As s u m e d C o n t r a c t s a r i s i n g a f t e r t h e C l o s i n g Date, i n c l u d i n g any and a l lb e n e f i t s and burdens of p o s t- C l o s i n g a d j u s t m e n t s under any As s u m e d C o n t r a c t(as d e n t i f i e d on Schedule 2 . 5 of h e A PA);( i i ) a l l Cure C o s t s and C a r r y i n g C o s t s , a s d e f i n e d i n t h e APA e l a t e d t o t h eAs s u m e d Leases and Assumed C o n t r a c t s ; i i i ) a l l employer o b l i g a t i o n s of e l l e r o r any of h e Debtors t o Employees a tany of t h e As s u m e d L o c a t i o n s w h o r e t u r n f o r employment a t t h e AssumedL o c a t i o n s ( t h e A s s u m e d E m p l o y e e i a b i l i t i e s ) ;( i v ) a l l o b l i g a t i o n s of e l l e r o r any of h e Debtors o customers of h e B u s i n e s sr e l a t i n g t o customer d e p o s i t s , p r o d u c t r e p a i r s , g i f t c a r d s and w a r r a n t y c l a i m s ( t h eA s s u m e d C u s t o m e r i a b i l i t i e s . )
1 0 . As a c o n d i t i o n of t h e c l o s i n g , t h e P u r c h a s e r i n s i s t e d on, a m o n g o t h e r t h i n g s ,p r o v i s i o n s i n t h e F i n a l S a l e Order t o e s t a b l i s h t h a t t h e P u r c h a s e r w i l l n o t c o n s t i t u t e as u c c e s s o r - i n - i n t e r e s t t o t h e D e b t o r s .
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RELIEFREQUESTEDI . APPROVAL OF THE SECTION 363 SALE AND SECTION 365 ASSUMPTION
ANDASSIGNMENT
A. The Asset Sale s In The Best n t e r e s t s Of he Debtors s t a t e s1 1 . S e c t i o n 3 6 3 ( b ) ( 1 ) of h e Bankruptcy Code p r o v i d e s t h a t a t r u s t e e , a f t e r n o t i c e
and a e a r i n g , m a y s e , s e l l o r l e a s e , o t h e r t h a n i n t h e o r d i n a r y c o u r s e of u s i n e s s , p r o p e r t y oft h e e s t a t e .
1 2 . A s a l e of t h e A s s e t s s h o u l d be a u t h o r i z e d p u r s u a n t t o s e c t i o n 363 of t h eBankruptcy Code i f a sound b u s i n e s s p u r p o s e e x i s t s f o r doing s o . See . g . Meyers . Martin( I n r e M a r t i n ) , 91 F.3d 389, 395 (3d C i r . 1996) c i t i n g F u l t o n S t a t e B a n k . S c h i p p e r ( I n r eS c h i p p e r ) , 933 F.2d 513, 515 7 t h C i r . 1 9 9 1 ) ) ; I n r e A b b o t t s D a i N i e s o f e n n s y l v a n i a , I n c . ,788 F . 2 d 143 (3d C i r . 1 9 8 6 ) ; Stephens n d u s . , I n c . v . McC l u n g , 789 F . 2 d 386, 390 6 t h C i r .1 9 8 6 ) ; I n r e L i o n e l C o N p . , 72 2 F.2d 1063 (2d C i r . 1 9 8 3 ) ; I n r e T i t u s v i l l e Country Club, 128B.R. 396 (W.D. Pa. 1 9 9 1 ) ; In r e Delaware Hudson Railway C o . , 124 B.R. 1 6 9 , 176 (D.D e l . 1 9 9 1 ) .
1 3 . The r u s t e e has proposed t h e s a l e of h e A s s e t s a f t e r thorough c o n s i d e r a t i o n of l lv i a b l e a l t e r n a t i v e s , and has concluded t h a t t h e s a l e i s s u p p o r t e d by a number of soundb u s i n e s s r e a s o n s . The n e c e s s i t y of h e proposed s a l e and t h e assumption and a s s i g n m e n t ofc e r t a i n l e a s e s and c o n t r a c t s p u r s u a n t t o s e c t i o n 365 stems from t h e c u r r e n t s t a t e of t h eD e b t o r s ' b u s i n e s s e s . The Debtors a r e n o t c u r r e n t l y o p e r a t i n g and h e v a l u e of h e i r a s s e t s andt h e a b i l i t y t o c o n t i n u e t h e i r o p e r a t i o n s a s a going concern i k e l y w i l l be d r a m a t i c a l l y i m p a c t e di f a s a l e i s n o t conducted i n t h e n e a r f u t u r e . See Tempo Technology, 2 0 2 B.R. a t 369-70(approving a a l e of l l of h e d e b t o r ' s a s s e t s , w i t h i n a month a f t e r t h e p e t i t i o n d a t e , where h ed e b t o r f a c e d a cash s h o r t f a l l , o p e r a t e d i n a n n d u s t r y where h e r e were few p o t e n t i a l p r o p o s e d
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P u r c h a s e r , and a n t i c i p a t e d c o n t i n u i n g l o s s e s and a d e c l i n e i n v a l u e of h e b a n k r u p t c y e s t a t e s ) ;T i t u s v i l l e CountNy Club, 128 B.R. a t 400 ( g r a n t i n g an e x p e d i t e d h e a r i n g on a m o t i o n t oa p p r o v e a s a l e a s a e s u l t of d e t e r i o r a t i o n of h e d e b t o r ' s a s s e t s ) .
1 4 . The T r u s t e e b e l i e v e s t h a t , w i t h o u t s u c h a s a l e of h e D e b t o r s ' A s s e t s , t h e T r u s t e ew i l l n o t be a b l e t o maximize v a l u e t o c r e d i t o r s . H e r e , t h e T r u s t e e b e l i e v e s t h a t t h e APAr e p r e s e n t s a f a i r v a l u e f o r t h e A s s e t s . The APA s t h e p r o d u c t of arms- l e n g t h , good f a i t hn e g o t i a t i o n s , i n which t h e T r u s t e e b a r g a i n e d f o r t h e m a x i m u m p o s s i b l e p r i c e f o r t h e A s s e t s .The T r u s t e e does n o t b e l i e v e s h e c o u l d o b t a i n a m a t e r i a l l y b e t t e r o f f e r from a n o t h e r b u y e r andt h e r e f o r e b e l i e v e s t h a t t h e s a l e of h e A s s e t s t o t h e P u r c h a s e r on t e r m s c o n s i s t e n t w i t h t h o s es e t f o r t h i n t h e APA s i n t h e b e s t i n t e r e s t s of h e D e b t o r s , t h e i r employees, h e i r c u s t o m e r s ,t h e i r v e n d o r s , h e i r e s t a t e s and t h e i r c r e d i t o r s .B . The Asset S a l e S a t i s f i e s The Requirements Of e c t i o n 3 6 3 ( f ) of t h e BankruptcyC o d e For A S a l e Free And Clear of L i e n s , Claims, I n t e r e s t s , Charges, a n d
Encumbrances.1 5 . Except f o r t h o s e l i b i l i t i e s e x p r e s s l y assumed i n t h e APA h e P u r c h a s e r a r e
b u y i n g t h e A s s e t s f r e e and c l e a r of l l l i e n s , c l a i m s , i n t e r e s t s , c h a r g e s , and e n c u m b r a n c e s .1 6 . S e c t i o n 3630 f h e Bankruptcy Code p r o v i d e s :
The t r u s t e e m a y e l l p r o p e r t y u n d e r s u b s e c t i o n b) r c) oft h i s s e c t i o n f r e e and c l e a r of any i n t e r e s t i n such p r o p e r t y of ane n t i t y o t h e r t h a n t h e e s t a t e , o n l y i f
1) a p p l i c a b l e n o n b a n k r u p t c y law p e r m i t s s a l e of suchp r o p e r t y f r e e and c l e a r of such i n t e r e s t ;
2) uch e n t i t y c o n s e n t s ;3) such i n t e r e s t i s a l i e n and t h e p r i c e a t which such
p r o p e r t y i s t o be s o l d i s g r e a t e r t h a n t h e a g g r e g a t e v a l u e of l l l i e n son such p r o p e r t y ;
4) uch i n t e r e s t i s i n a bona i d e d i s p u t e ; o r5) such e n t i t y c o u l d be c o m p e l l e d , i n a l e g a l o r e q u i t a b l e
p r o c e e d i n g , o a c c e p t a money s a t i s f a c t i o n of u c h i n t e r e s t .
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1 1 U.S.C. 36301 7 . S e c t i o n 3630 of t h e Bankruptcy Code i s d r a f t e d i n t h e d i s j u n c t i v e . Thus,
s a t i s f a c t i o n of any of h e r e q u i r e m e n t s enumerated t h e r e i n w i l l s u f f i c e t o w a r r a n t t h e T r u s t e e ' ss a l e of t h e A s s e t s f r e e and c l e a r of l l l i e n s , c l a i m s , r i g h t s , i n t e r e s t s , and encumbrances a sp r o v i d e d i n t h e A s s e t Purchase Agreement c o l l e c t i v e l y , t h e I n t e r e s t s ) , e x c e p t w i t h r e s p e c tt o such I n t e r e s t s a s a r e assumed p u r s u a n t t o t h e Asset Purchase Agreement. See C i t i c o r pHomeowners S e r v i c e s , I n c . v . E l l i o t , 94 B.R. 343, 345 (E.D. Pa. 1 9 8 8 ) . The T r u s t e e s u b m i t st h a t each I n t e r e s t t h a t i s n o t assumed p u r s u a n t t o t h e Asset Purchase Agreement s a t i s f i e s a tl e a s t one of h e f i v e c o n d i t i o n s of 3630 f h e Bankruptcy Code, and t h a t any such I n t e r e s tw i l l be a d e q u a t e l y p r o t e c t e d by e i t h e r b e i n g p a i d i n f u l l a t t h e time of l o s i n g , o r by h a v i n g i ta t t a c h t o t h e n e t p r o c e e d s of h e s a l e , s u b j e c t t o a n y c l a i m s and d e f e n s e s t h e D e b t o r s ' e s t a t e sm a y p o s s e s s w i t h r e s p e c t t h e r e t o . The T r u s t e e a c c o r d i n g l y r e q u e s t s t h a t t h e A s s e t s bet r a n s f e r r e d t o t h e P u r c h a s e r f r e e and c l e a r of l l I n t e r e s t s (except f o r t h e I n t e r e s t s t h a t a r eassumed), i t h such I n t e r e s t s t o a t t a c h t o t h e p r o c e e d s of h e s a l e .
1 8 . The APA l s o c o n t e m p l a t e s t h a t t h e P u r c h a s e r s h a l l n o t be l i a b l e f o r any of h eD e b t o r s ' l i a b i l i t i e s a s a s u c c e s s o r t o t h e D e b t o r s ' b u s i n e s s e s o r o t h e r w i s e ( t h e ExcludedL i a b i l i ti e s ) , e x c e p t w i t h r e s p e c t t o l i a b i l i t i e s e x p r e s s l y assumed i n t h e APA y t h e P u r c h a s e r .
1 9 . S e c t i o n 3630 f t h e Bankruptcy Code p r o v i d e s f o r t h e s a l e of a s s e t s f r e e andc l e a r of any i n t e r e s t s . The Seventh C i r c u i t has h e l d t h a t t h e term a n y i n t e r e s t s h o u l d beg i v e n a broad i n t e r p r e t a t i o n and i s n o t l i m i t e d t o i n rem i n t e r e s t s i n p r o p e r t y P r e c i s i o nI n d u s . , I n c . v . Q u a l i t e c h S t e e l S B Q , LLC, 327 F . 3 d 537, 545 ( 7 t h C i r . 2 0 0 3 ) . L i k e w i s e ,numerous c o u r t s have h e l d t h a t a proposed p u r c h a s e r of a d e b t o r ' s a s s e t s p u r s u a n t t o a e c t i o n363 s a l e t a k e s f r e e from s u c c e s s o r l i a b i l i t y r e s u l t i n g from p r e - e x i s t i n g c l a i m s . See I n r e TNansWorld A i r l i n e s , I n c . , 322 F.3d 283, 292-93 (3d C i r . 2003); Douglas v . Stamco, 363 Fed.
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App x 100, 103 (2d C i r . 2010); n r e A l l Am. Of shburn, n c . , 56 B.R. 186 Bankr. N.D. Ga.1 9 8 6 ) .
C. Authorization Of ssumpti o n And Assignment Of xecutory Contracts And e a s e s .20. A s e q u i r e d b y h e APA, h e T r u s t e e r e q u e s t s a p p r o v a l , under 1 1 U.S.C. 365, o f
t h e assumption and assignment o f c e r t a i n e x e c u t o r y c o n t r a c t s and l e a s e s t o t h e P u r c h a s e r .The T r u s t e e f u r t h e r r e q u e s t s t h a t t h e o r d e r a p p r o v i n g such s a l e p r o v i d e t h a t t h e assumedc o n t r a c t s w i l l be t r a n s f e r r e d t o , and remain i n f u l l f o r c e and e f f e c t f o r t h e b e n e f i t o f t h eP u r c h a s e r n o t w i t h s t a n d i n g a n y p r o v i s i o n s i n t h e assumed c o n t r a c t s , i n c l u d i n g t h o s e d e s c r i b e di n s e c t i o n s 3 6 5 ( b ) ( 2 ) and (~(1) and (3) o f t h e Bankruptcy Code, t h a t p r o h i b i t sucha s s i g n m e n t . The o n t r a c t s and l e a s e s t h e T r u s t e e s e e k s t o assume a r e i d e n t i f i e d i n t h e APA.
21. S e c t i o n 3650 f h e Bankruptcy Code p r o v i d e s , i n p e r t i n e n t p a r t , t h a t :The r u s t e e may a s s i g n an e x e c u t o r y c o n t r a c t o r u n e x p i r e d
l e a s e of h e d e b t o r only f A) t h e t r u s t e e assumes such c o n t r a c t o r l e a s e i n
accordance w i t h t h e p r o v i s i o n s o f h i s s e c t i o n ; andB) a d e q u a t e a s s u r a n c e o f f u t u r e performance b y t h e
a s s i g n e e o f uch c o n t r a c t o r l e a s e i s p r o v i d e d , whether o r n o t t h e r ehas been a d e f a u l t i n such c o n t r a c t o r l e a s e .
1 1 U.S.C. 3650(2). Under s e c t i o n 365(a) o f h e Bankruptcy Code, a t r u s t e e s u b j e c t t o t h ec o u r t ' s a p p r o v a l , may assume o r r e j e c t any e x e c u t o r y c o n t r a c t o r u n e x p i r e d l e a s e o f h e d e b t o r .1 1 U.S.C. 6 5 ( a ) . S e c t i o n 3 6 5 ( b ) ( 1 ) o f h e Bankruptcy Code, n t u r n , c o d i f i e s t h e r e q u i r e m e n t sf o r assuming a n u n e x p i r e d l e a s e o r e x e c u t o r y c o n t r a c t of a d e b t o r , p r o v i d i n g t h a t :
( b ) ( 1 ) I f t h e r e has been a e f a u l t i n a n e x e c u t o r y c o n t r a c to r u n e x p i r e d l e a s e o f h e d e b t o r , t h e t r u s t e e may n o t assume suchc o n t r a c t o r l e a s e u n l e s s , a t t h e time o f ssumption o f uch c o n t r a c to r l e a s e , t h e t r u s t e e - -
A) u r e s , o r p r o v i d e s a d e q u a t e a s s u r a n c e t h a t t h e t r u s t e ew i l l promptly u r e , such d e f a u l t ;
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B) ompensates, r p r o v i d e s a d e q u a t e a s s u r a n c e t h a t t h et r u s t e e w i l l promptly compensate, a p a r t y o t h e r t h a n t h e d e b t o r t osuch c o n t r a c t o r l e a s e , o r any a c t u a l p e c u n i a r y l o s s t o such p a r t yr e s u l t i n g from such d e f a u l t ; a nd
C) r o v i d e s a d e q u a t e a s s u r a n c e o f u t u r e performanceunder such c o n t r a c t o r l e a s e .
1 1 U.S.C. 6 5 ( b ) ( 1 ) .22. Here, t h e assumption a n d assignment o f t h e a s s u m e d c o n t r a c t s s e t f o r t h i n t h e
APA s a n e c e s s a r y p a r t o f t h e d e a l t h a t t h e T r u s t e e h a s s t r u c k w i t h t h e P u r c h a s e r . Th eT r u s t e e b e l i e v e s t h a t a l l t h e r e q u i r e m e n t s f o r t h e assumption o f t h e s p e c i f i e d c o n t r a c t s an dl e a s e s a r e m e t a s t h e P u r c h a s e r a r e o b l i g a t e d t o pay and c u r e c o s t s a s s o c i a t e d w i t h sucha s s u m p t i o n . F u r t h e r , based o n t h e i n f o r m a t i o n r e c e i v e d b y t h e T r u s t e e f rom t h e P u r c h a s e r ,t h e T r u s t e e b e l i e v e s t h a t t h e P u r c h a s e r c a n p r o v i d e a d e q u a t e a s s u r a n c e o f t h e i r a b i l i t y t operform under t h e a s s u m e c o n t r a c t s a n d l e a s e s a n d w i l l b e a b l e t o p r o v i d e t h i s e v i d e n c e t o t h eCourt i f so r e q u i r e d . C o n s e q u e n t l y , assumption and assignment o f t h e assumed c o n t r a c t sa p p r o p r i a t e under t h e c i r c u m s t a n c e s .
D. G o o d Faith U n d e r S e c t i o n 363(M)Of h e Bankru ptcy C o d e .23. S e c t i o n 363(m) f h e Bankruptcy C o d e p r o v i d e s :
Th e r e v e r s a l o r m o d i f i c a t i o n o n a p p e a l o f a n a u t h o r i z a t i o n unders u b s e c t i o n (b) r (c) of t h i s s e c t i o n o f a s a l e o r l e a s e o f p r o p e r t ydoes n o t a f f e c t t h e v a l i d i t y o f a s a l e o r l e a s e under sucha u t h o r i z a t i o n t o a n e n t i t y t h a t p u r c h a s e d o r l e a s e d such p r o p e r t y i ng o o d f a i t h , whether o r n o t such e n t i t y k n e w o f h e p e n de n c y o f h ea p p e a l , u n l e s s such a u t h o r i z a t i o n and such s a l e o r l e a s e w e r es t a y e d pending a p p e a l .
11 U.S.C. 363(m). While t h e Bankruptcy C o d e does n o t d e f i n e g o o d f a i t h , t h e SeventhC i r c u i t has h e l d t h a t g o o d f a i t h i s p r e s e n t u n l e s s a p a r t y c a n s h o w f r a u d , c o l l u s i o n betweent h e p u r c h a s e and o t h e r b i d d e r s o r t h e t r u s t e e , o r a n a t t e m p t t o t a k e g r o s s l y u n f a i r a d v a n t a g e o fo t h e r b i d d e r s . I n r e V e t t e r C o r p . , 724 F.2d 52, 56 7 `hC i r . 1 9 8 3 ) . Th e APA s a n i n t e n s e l y-
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n e g o t i a t e d , arm s- l e n g t h t r a n s a c t i o n , i n which t h e Purchaser have, a t a l l t i m e s , a c t e d i n goodf a i t h . The T r u s t e e thus r e q u e s t s t h a t t h e Court m a k e a i n d i n g t h a t t h e Purchaser have p u r c h a s e dt h e A s s e t s , and have taken by assignment t h e A ss u m e d C o n t r a c t s and A ss u m e d L i a b i l i t i e s , i ngood a i t h w i t h i n t h e meaning of e c t i o n 363(m) f h e Bankruptcy Code.I I . Notice
24. The T r u s t e e has given 21 days n o t i c e of h e h e a r i n g on t h i s Motion t o a l l c r e d i t o r sl i s t e d on t h e Debtors r e d i t o r m a t r i x i n t h e form of x h i b i t B e r e t o . I n a d d i t i o n , t h e T r u s t e ehas mailed a copy of h i s Motion t o (a) h e Debtors l a n d l o r d s ,(b) l l of h e Debtors knownt a x i n g a u t h o r i t i e s , (c) a l l known h o l d e r s of l i e n s a g a i n s t t h e Debtors a s s e t s , (d)c o u n t e r p a r t i e s t o t h e c o n t r a c t s t h a t t h e T r u s t e e proposes t o a s s i g n t o t h e P u r c h a s e r , (e)p a r t i e s who a v e c o n t a c t e d t h e T r u s t e e and e x p r e s s e d an i n t e r e s t i n buying t h e Debtors s s e t sand ~ l l p a r t i e s t h a t have r e q u e s t e d t o r e c e i v e n o t i c e . The T r u s t e e b e l i e v e s t h i s n o t i c e i ss u f f i c i e n t under t h e circumstances and s h o u l d be approved under Bankruptcy Ru le 2 0 0 2 a ) 2 ) .
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WHEREFORE, h e T r u s t e e r e s p e c t f u l l y r e q u e s t s t h a t t h e Court e n t e r an o r d e r i ns u b s t a n t i a l l y t h e form a t t a c h e d h e r e t o and g r a n t i n g such o t h e r and f u r t h e r r e l i e f a s s j u s t andp r o p e r .
C a t h e r i n e S t e e g e 01683529M e l i s s a M. o o t 62882466)Landon S . R a i f o r d 6297473)JENNER BLOCK, LP353 N. l a r k S t r e e tChicago, l l i n o i s 60654-3456PH: 312) 23-2952FAX: 312) 840-7352Dated: Apri17, 2014
CATHERINESTEEGE, o t i n d i v i d u a l l y b u t a si n t e r i m c h a p t e r 7 r u s t e e f o r t h e b a n k r u p t c y e s t a t eof each of h e above- c a p t i o n e d d e b t o r s .
BY: / s / C a t h e r i n e S t e e g eC a t h e r i n e S t e e g e
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