Opinion
Case Nos.: 10-26052-DER, et al.
2012-01-09
In re: BUD'S CAR WASH MOUNTAIN ROAD, LLC, et al., Debtors.
Craig Palik (Bar No. 15254) McNamee Hosea Jernigan Kim Greenan & Lynch, P.A. Attorneys for Debtors Lisa Bittle Tancredi (Bar No. 22440) Gebhardt & Smith, LLP Attorneys for Harford Bank
SO ORDERED
________________________
U.S. BANKRUPTCY JUDGE
Jointly Administered
STIPULATION AND CONSENT ORDER EXTENDING
FINAL ORDER AUTHORIZING USE OF CASH COLLATERAL
On August 2, 2010, this Court entered an interim order authorizing the Debtors to use cash collateral in which Harford Bank has alleged a security interest and lien through August 10, 2010. See Dkt. No. 35. On August 25, 2010, the Court entered an order authorizing the Debtors to continue to use the cash collateral through September 22, 2010. See Dkt. No. 52.
On September 17, 2010, the Debtors filed a motion requesting authority to continue to use the cash collateral through September 30, 2011, see Dkt. No. 63, and on September 20, 2010, the Court entered a Consent Order and Final Order (I) Authorizing Debtors to Use Cash Collateral Pursuant to 11 U.S.C. § 363 and (II) Granting Adequate Protection Pursuant to 11 U.S.C. §§ 105, 361, 362 and 363 (the "Final Cash Collateral Order"). See Dkt. No. 67. Among other things, the Final Cash Collateral Order authorizes the Debtors to continue to use Harford Bank's cash collateral through September 30, 2011.
On September 22, 2010, the Official Committee of Unsecured Creditors (the "Committee") filed a motion requesting that the Court modify the Final Cash Collateral Order by (i) authorizing use of cash collateral through a shorter period of time and (ii) requiring that any modifications to the budget be approved in writing by the Committee prior to the modifications.
On October 6, 2010, by consent of the Debtors, the Official Committee of Unsecured Creditors and Harford Bank, a Stipulation and Consent Order Extending Final Order Authiorizing Cash Collateral was entered by the Court (the "October 6, 2010 Consent Order"). See Dkt. No. 77. By its terms, the October, 2010 Consent Order expired on December 4, 2010.
On December 7, 2010, by consent of the Debtors, the Official Committee of Unsecured Creditors and Harford Bank, a Stipulation and Consent Order Extending Final Order Authiorizing Cash Collateral was entered by the Court (the "December7, 2010 Consent Order"). See Dkt. No. 103. By its terms, the December 7 , 2010 Consent Order expired on February 2, 2011.
On February 8, 2011, by consent of the Debtors, the Official Committee of Unsecured Creditors and Harford Bank, a Stipulation and Consent Order Extending Final Order Authiorizing Cash Collateral was entered by the Court (the "February 8, 2011 Consent Order"). See Dkt. No. 114. By its terms, the February 8, 2011 Consent Order expired on April 1, 2011.
On July 27, 2011, by consent of the Debtors, the Official Committee of Unsecured Creditors and Harford Bank, a Stipulation and Consent Order Extending Final Order Authiorizing Cash Collateral was entered by the Court (the "July 27, 2011 Consent Order"). See Dkt. No. 146. By its terms, the July 27, 2011 Consent Order expired on September 30, 2011.
On October 7, 2011, by consent of the Debtors, the Official Committee of Unsecured Creditors and Harford Bank, a Stipulation and Consent Order Extending Final Order Authiorizing Cash Collateral was entered by the Court (the "October 7, 2011 Consent Order"). See Dkt. No. 163. By its terms, the October7, 2011 Consent Order expired on November 30, 2011.
The Debtors and Harford Bank hereby seek to further extend the Debtor's ability to use Cash Collateral for an additional three (3) month period through February 29, 2012, as set forth herein. The Committee does not take a positon at the present timt with respect to the foregoing Stipulation and most recent extension of the use of cash collateral.
NOW, THEREFORE, the Debtors and Harford Bank hereby stipulate and agree to, and the Court hereby approves, the following:
1. All capitalized terms in this Stipulation and Consent Order shall have the meanings ascribed to them in the Final Cash Collateral Order unless altered herein.
2. The Debtor's authority to use cash collateral is authorized through the earlier of February 29, 2012, or the occurrence of a Termination Event, pursuant to the terms and conditions set forth in the Final Cash Collateral Order (as modified hereby) and the attached three (3) month budget attached hereto as "Exhibit A."
3. Prior to making any modifications to the budget attached to the Final Cash Collateral Order, the Debtors shall provide written notice of such modifications to the Committee.
4. Within two (2) business days after entry of this Stipulation and Consent Order, the Debtors shall serve electronically or by first class mail, postage prepaid, copies of this Stipulation and Consent Order on the Office of the United States Trustee and all parties in interest that have requested notice.
5. All other terms of the Final Cash Collateral Order shall remain in full force and effect. Except as expressly provided herein, no terms of the Final Cash Collateral Order are amended, altered or otherwise nullified.
6. The right of any creditor or party in interest, to object to the foregoing Stipulation and Consent Order subsequent to entry hereof shall be preserved; provided, however, that the rights and liens in favor of the Bank granted herein shall not be affected with respect to the cash collateral used by the Debtors through the date of entry of an order by the Court determining such objection.
SO ORDERED. CONSENT AS TO FORM AND CONTENT:
________________________
Craig Palik (Bar No. 15254)
McNamee Hosea Jernigan Kim Greenan &
Lynch, P.A.
Attorneys for Debtors
________________________
Lisa Bittle Tancredi (Bar No. 22440)
Gebhardt & Smith, LLP
Attorneys for Harford Bank
Certification Pursuant to Admin. Order 03-02, Ex. A, Sec. V.B.1
I HEREBY CERTIFY that the terms of the copy of the foregoing consent order submitted to the Court are identical to those set forth in the original consent order; and the signatures represented by the /s/ on this copy reference the signatures of consenting parties on the original consent order.
________________________
Craig M. Palik
cc: Maria Ellena Chavez-Ruark, Esquire
Tydings & Rosenberg LLP
100 East Pratt Street, 26th Floor
Baltimore, MD 21202
Office of the United States Trustee
101 West Lombard Street, Suite 2625
Baltimore, MD 21201
Craig Palik, Esquire
McNamee Hosea Jernigan Kim Greenan & Lynch, P.A.
6411 Ivy Lane, Suite 200
Greenbelt, MD 20770
Lisa Bittle Tancredi, Esquire
Gebhardt & Smith, LLP
One South Street, Suite 2200
Baltimore, MD 21202-3281
EXHIBIT A
December, 2011
+-------------------------------------------------------+ ¦ ¦Total ¦AMR, Inc.¦Mountain Road¦ +------------------------+------+---------+-------------¦ ¦Income ¦ ¦ ¦ ¦ ¦ ¦24,000¦0 ¦24,000 ¦ ¦Sales-Wash & Vac ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Residential Rent Income ¦500 ¦500 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Rental Income ¦27,500¦27,500 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Total Income ¦52,000¦28,000 ¦24,000 ¦ +------------------------+------+---------+-------------¦ ¦Cost of Goods Sold ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Heat & Light ¦2,500 ¦0 ¦2,500 ¦ +------------------------+------+---------+-------------¦ ¦Purchases-Wash & Vac ¦500 ¦0 ¦500 ¦ +------------------------+------+---------+-------------¦ ¦Water & Sewer ¦1,200 ¦0 ¦1,200 ¦ +------------------------+------+---------+-------------¦ ¦Total Cost of Goods Sold¦4,200 ¦0 ¦4,200 ¦ +------------------------+------+---------+-------------¦ ¦Gross Profit ¦47,800¦28,000 ¦19,800 ¦ +------------------------+------+---------+-------------¦ ¦Expenses ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Auto Expense ¦100 ¦0 ¦100 ¦ +------------------------+------+---------+-------------¦ ¦Bank Service Charges ¦23 ¦11 ¦12 ¦ +------------------------+------+---------+-------------¦ ¦Credit Card Fees ¦750 ¦0 ¦750 ¦ +------------------------+------+---------+-------------¦ ¦Mortgage-P&I ¦24,700¦24,700 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Prof. Fees-Bankruptcy ¦5,000 ¦2,500 ¦2,500 ¦ +------------------------+------+---------+-------------¦ ¦Property Taxes ¦1,010 ¦310 ¦700 ¦ +------------------------+------+---------+-------------¦ ¦Rent ¦5,167 ¦0 ¦5,167 ¦ +------------------------+------+---------+-------------¦ ¦Repairs & Maintenance ¦1,200 ¦0 ¦1,200 ¦ +------------------------+------+---------+-------------¦ ¦Repairs & Maintenance ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Residential Rental ¦498 ¦498 ¦ ¦ +------------------------+------+---------+-------------¦ ¦Utilities ¦500 ¦150 ¦350 ¦ +------------------------+------+---------+-------------¦ ¦Total Expenses ¦38,948¦28,169 ¦10,779 ¦ +------------------------+------+---------+-------------¦ ¦ ¦8,852 ¦-169 ¦9,021 ¦ +-------------------------------------------------------+
+-------------------------------------------------------+ ¦ ¦Total ¦AMR, Inc.¦Mountain Road¦ +------------------------+------+---------+-------------¦ ¦Income ¦ ¦ ¦ ¦ ¦ ¦28,000¦0 ¦28,000 ¦ ¦Sales-Wash & Vac ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Residential Rent Income ¦500 ¦500 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Rental Income ¦27,500¦27,500 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Total Income ¦56,000¦28,000 ¦28,000 ¦ +------------------------+------+---------+-------------¦ ¦Cost of Goods Sold ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Heat & Light ¦2,000 ¦0 ¦2,000 ¦ +------------------------+------+---------+-------------¦ ¦Purchases-Wash & Vac ¦500 ¦0 ¦500 ¦ +------------------------+------+---------+-------------¦ ¦Water & Sewer ¦1,200 ¦0 ¦1,200 ¦ +------------------------+------+---------+-------------¦ ¦Total Cost of Goods Sold¦3,700 ¦0 ¦3,700 ¦ +------------------------+------+---------+-------------¦ ¦Gross Profit ¦52,300¦28,000 ¦24,300 ¦ +------------------------+------+---------+-------------¦ ¦Expenses ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Auto Expense ¦100 ¦0 ¦100 ¦ +------------------------+------+---------+-------------¦ ¦Bank Service Charges ¦23 ¦11 ¦12 ¦ +------------------------+------+---------+-------------¦ ¦Credit Card Fees ¦980 ¦0 ¦980 ¦ +------------------------+------+---------+-------------¦ ¦Mortgage-P&I ¦24,700¦24,700 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Prof. Fees-Bankruptcy ¦6,625 ¦3,475 ¦3,150 ¦ +------------------------+------+---------+-------------¦ ¦Property Taxes ¦1,010 ¦310 ¦700 ¦ +------------------------+------+---------+-------------¦ ¦Rent ¦5,167 ¦0 ¦5,167 ¦ +------------------------+------+---------+-------------¦ ¦Repairs & Maintenance ¦1,100 ¦0 ¦1,100 ¦ +------------------------+------+---------+-------------¦ ¦Repairs & Maintenance ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Residential Rental ¦173 ¦173 ¦ ¦ +------------------------+------+---------+-------------¦ ¦Utilities ¦500 ¦150 ¦350 ¦ +------------------------+------+---------+-------------¦ ¦Total Expenses ¦40,378¦28,819 ¦11,559 ¦ +------------------------+------+---------+-------------¦ ¦ ¦11,922¦-819 ¦12,741 ¦ +-------------------------------------------------------+
+-------------------------------------------------------+ ¦ ¦Total ¦AMR, Inc.¦Mountain Road¦ +------------------------+------+---------+-------------¦ ¦Income ¦ ¦ ¦ ¦ ¦ ¦23,700¦0 ¦23,700 ¦ ¦Sales-Wash & Vac ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Residential Rent Income ¦500 ¦500 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Rental Income ¦27,500¦27,500 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Total Income ¦51,700¦28,000 ¦23,700 ¦ +------------------------+------+---------+-------------¦ ¦Cost of Goods Sold ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Heat & Light ¦1,400 ¦0 ¦1,400 ¦ +------------------------+------+---------+-------------¦ ¦Purchases-Wash & Vac ¦500 ¦0 ¦500 ¦ +------------------------+------+---------+-------------¦ ¦Water & Sewer ¦1,200 ¦0 ¦1,200 ¦ +------------------------+------+---------+-------------¦ ¦Total Cost of Goods Sold¦3,100 ¦0 ¦3,100 ¦ +------------------------+------+---------+-------------¦ ¦Gross Profit ¦48,600¦28,000 ¦20,600 ¦ +------------------------+------+---------+-------------¦ ¦Expenses ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Auto Expense ¦100 ¦0 ¦100 ¦ +------------------------+------+---------+-------------¦ ¦Bank Service Charges ¦23 ¦11 ¦12 ¦ +------------------------+------+---------+-------------¦ ¦Credit Card Fees ¦1,050 ¦0 ¦1,050 ¦ +------------------------+------+---------+-------------¦ ¦Mortgage-P&I ¦24,700¦24,700 ¦0 ¦ +------------------------+------+---------+-------------¦ ¦Prof. Fees-Bankruptcy ¦5,000 ¦2,500 ¦2,500 ¦ +------------------------+------+---------+-------------¦ ¦Property Taxes ¦1,010 ¦310 ¦700 ¦ +------------------------+------+---------+-------------¦ ¦Rent ¦5,167 ¦0 ¦5,167 ¦ +------------------------+------+---------+-------------¦ ¦Repairs & Maintenance ¦800 ¦0 ¦800 ¦ +------------------------+------+---------+-------------¦ ¦Repairs & Maintenance ¦ ¦ ¦ ¦ +------------------------+------+---------+-------------¦ ¦Residential Rental ¦75 ¦75 ¦ ¦ +------------------------+------+---------+-------------¦ ¦Utilities ¦350 ¦0 ¦350 ¦ +------------------------+------+---------+-------------¦ ¦Total Expenses ¦38,275¦27,596 ¦10,679 ¦ +------------------------+------+---------+-------------¦ ¦ ¦10,325¦404 ¦9,921 ¦ +-------------------------------------------------------+