case 8-09-70660-dte doc 4097 filed 11/15/13 entered 11/15 ... · moreover copies of the foregoing...

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------------x In re: Chapter 7 AGAPE WORLD, INC., et al., Case No. 09-70660 (DTE) Debtors. -------------------------------------------------------------x

ORDER (I) AUTHORIZING THE TRUSTEE TO EFFECT A FIRST AND SECOND INTERIM

DISTRIBUTION TO HOLDERS OF NEWLY VALIDATED CLAIMS, FROM MONIES HELD BY THE TRUSTEE IN A CLAIMS RESERVE

ESTATE ACCOUNT; (II) AUTHORIZING THE TRUSTEE TO EFFECT A THIRD INTERIM DISTRIBUTION TO ALL HOLDERS OF VALIDATED CLAIMS,

FROM PROPERTY OF THE ESTATE ON ACCOUNT WITH THE TRUSTEE; (III) ESTABLISHING PROCEDURES FOR FUTURE DISTRIBUTIONS BY THE

TRUSTEE; (IV) APPROVING VOLUNTARY REDUCTIONS OF CERTAIN PROOFS OF CLAIM FILED AGAINST THE DEBTORS; AND (V) GRANTING RELATED RELIEF

Upon the October 21, 2013 motion (the “Motion”) of Kenneth P. Silverman, Esq.,

the Chapter 7 trustee (the “Trustee”) of the substantively consolidated estate of Agape

World, Inc., et al. (the “Debtor”), by his counsel, SilvermanAcampora LLP, seeking an

order under Federal Rule of Bankruptcy Procedure 3009 and 11 U.S.C. §§105, 502, and

726 to: (i) authorize the Trustee to effect a first and second interim distribution to holders

of newly validated claims, from monies held by the Trustee in a claims reserve estate

account (the “New Validation Distribution”); (ii) authorize the Trustee to effect a third

interim distribution to all holders of validated claims, from property of the estate on

account with the Trustee (the “Third Interim Distribution”); (iii) establish procedures for

future distributions by the Trustee (the “Catch-up Distribution Procedures”); (iv)

approve voluntary reductions of certain proofs of claim filed against the Debtors (the

“Voluntary Claims Reductions”); and (v) grant related relief; and due notice of the

Motion having been given to all parties subject to the Motion, and the Trustee having

complied with this Court’s Order Establishing Noticing Procedures entered on July 8,

2009; and upon a hearing held before the Court on November 14, 2013 (the “Hearing”),

Case 8-09-70660-dte Doc 4097 Filed 11/15/13 Entered 11/15/13 13:36:47

the transcript of which is incorporated herein by reference; at which time all parties in

interest were afforded an opportunity to be heard at the Hearing; and the Trustee having

appeared at the Hearing by and through his attorneys; and all objections to the Motion

having been resolved or overruled; and upon the Affidavit of Service of the Motion on file

with the Court; and after due deliberation and consideration of all the facts and

circumstances herein; and the relief sought in the Motion being determined to be in the

best interests of the Debtor’s estate and its creditors, and no further notice being

necessary or required; and for good and sufficient cause; it is, therefore, hereby

ORDERED, that service of the Notice, Motion and proposed Order, having been

provided to: (i) the Office of the United States Trustee; (ii) Nicholas Cosmo, former

principal of the Debtors, (iii) the appropriate taxing authorities, (iv) all parties having filed

a Notice of Appearance in this case, (v) all Voluntary Reduction Claimants, (vi) the

United States Commodities Futures Trade Commission; and (vii) all Newly Validated

Claimants. Moreover copies of the foregoing documents have been posted on the

Trustee’s website located at www.agapeworldbankruptcy.com, complies with this Court’s

Order Establishing Noticing Procedures entered on July 8, 2009 and is otherwise

sufficient; and, it is further

ORDERED, that the Motion is granted to the extent set forth herein; and, it is

further

ORDERED, that the New Validation Distribution as set forth in the Motion and

Exhibit A hereto is approved; and, it is further

ORDERED, that the Trustee is authorized and directed to make a distribution of

$264,144.24 from the Distribution Reserve Account1 to the Newly Validated Claimants

as set forth in Exhibit A hereto, representing their pro rata first and second interim

distributions; and, it is further

1 All capitalized terms not defined herein have the same meaning ascribed to them in the Motion


ORDERED, that the Third Interim Distribution as set forth in the Motion is

approved; and, it is further

ORDERED, that the Trustee is authorized and directed to make a distribution of

$3,242,908.41 from property of the estate on account with the Trustee, representing the

Actual Third Distribution; and, it is further

ORDERED, that the Trustee is authorized and directed to deposit $3,757,091.59

into the Distribution Reserve Account for the benefit of any future validated Unresolved

Claims, representing their pro rata share of the Third Interim Distribution; and, it is

further

ORDERED, that the Catch-up Distribution Procedures are approved as set forth

below:

a. file a notice of presentment of distribution on the Court’s docket for the Debtors’ cases, which shall include a schedule setting forth the (a) claimant’s name, (b) claim number, (c) allowed amount of the claim, (d) distribution percentage, and (e) distribution amount and should be similar in appearance to Exhibit A hereto (collectively, the “Distribution Notice”);

b. provide a copy of the Distribution Notice to the Office of the United States Trustee, and provide a courtesy copy of the Distribution Notice to the Court;

c. post the Distribution Notice to the Trustee’s website located at www.agapeworldbankruptcy.com; and

d. unless that an objection is filed, or the Court schedules

a hearing regarding a particular Catch-up Distribution, the Trustee, without further order of the Court, is authorized, in his sole discretion, to distribute the amounts set forth in the Distribution Notice on or after the fifteenth (15th) day from the date such Distribution Notice was filed; and, it is further


http://www.agapeworldbankruptcy.com/

ORDERED, that the Trustee is authorized and directed to make future

distributions to holders of any newly validated claims, which are presently unresolved, in

accordance with the Catch-up Distribution Procedures set forth above; and, it is further

ORDERED, that the Voluntary Claims Reductions as set forth in the Motion and

Exhibit B hereto, are approved in all respects; and, it is further

ORDERED, that the Rust Omni is authorized and directed to reduce and allow all

Claims listed on Exhibit B hereto as general unsecured Claims as set forth on Exhibit B

hereto; and, it is further

ORDERED, that the Trustee be, and hereby is, authorized and allowed to do

such things, expend such funds and execute such documents as may be necessary to

implement the terms and conditions of this Order.

____________________________Dorothy EisenbergUnited States Bankruptcy Judge

Dated: Central Islip, New York November 15, 2013


Case 8-09-70660-dte Doc 4097-1 Filed 11/15/13 Entered 11/15/13 13:36:47

case 8-09-70660-dte doc 4097 filed 11/15/13 entered 11/15 ... · moreover copies of the foregoing...

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