Opinion
Case No. 08-18529-JS.
December 11, 2008
TYDINGS ROSENBERG LLP, Alan M. Grochal, Bar No. 01447, Tydings Rosenberg LLP, Baltimore, Maryland, Attorneys For The Debtor.
NILES, BARTON WILMER, LLP, Robert F. Scholz, Bar No. 08415, Niles, Barton Wilmer, LLP, Baltimore, Maryland, Attorneys For Presidential Financial Corporation Of The Chesapeake.
Pursuant to a Final Order Granting Debtor's Emergency Motion for Authority to Enter into Financing Agreements, to Borrow Money, to Grant Senior Liens Against Property of the Estate and Priority Administrative Expense Claims, to Assume Existing Financing Agreements, and Related Relief [Docket No. 34] by and between Presidential Financial Corporation of the Chesapeake (the "Lender") and The Complete Office Source, Inc., debtor and debtor-in-possession (the "Debtor"), which this Court approved and entered on July 16, 2008 and thereafter extended and modified pursuant to a Stipulation and Consent Order Extending and Modifying Final Order Granting Debtor's Emergency Motion for Authority to Enter into Financing Agreements, to Borrow Money, to Grant Senior Liens Against Property of the Estate and Priority Administrative Expense Claims, to Assume Existing Financing Agreements, and Related [Docket No. 89] approved and entered on September 25, 2008 (collectively, the "Final Order"). By its terms, the Final Order was scheduled to expire on November 26, 2008. Unless otherwise indicated, all capitalized terms used herein shall have the meanings ascribed to them in the Final Order.
The Debtor has a continuing need to obtain Debtor-in-Possession Financing to fund the operation of the Debtor's business and to preserve the value of the Debtor's assets. To allow for the continued use of Debtor-in-Possession Financing, the Lender and the Debtor desire to enter into this Stipulation and Consent Order Further Extending and Modifying the Final Order (the "Second Extension"). Accordingly, the Lender and the Debtor hereby stipulate and agree as follows:
1. The Debtor's authority to continue to obtain Debtor-in-Possession Financing under the terms set forth in the Final Order shall be extended from November 26, 2008, through and including December 26, 2008, pursuant to the terms and conditions set forth in the Final Order, as modified hereby.
2. The Budget attached hereto as Exhibit A shall be substituted in lieu of the Budget attached to the Final Order.
3. The Debtor is authorized to obtain Debtor-in-Possession Financing through the period covered by the First Extension up to the amounts and for the purposes set forth in the Budget attached hereto as Exhibit A subject to approval in each instance by Presidential, in its sole discretion, provided, however, that Presidential agrees that it will respond to any such requests from the Debtor within two (2) hours. The Debtor shall only use Debtor-in-Possession Financing in accordance with the time period and terms set forth in the Budget and only for the periods set forth in the Budget. The authorization granted to the Debtor under the First Extension shall terminate upon the earlier of: (i) December 26, 2008; (ii) closing on the approved sale of substantially all of the Debtor's assets to Impact Office Products, LLC or (iii) the occurrence of any Event of Default as defined in paragraph 28 of the Final Order. Notwithstanding (i) any such termination, or (ii) any reversal or modification, on appeal or by Order of this Court upon timely objection to this First Extension, of the authorization to obtain credit or incur a debt or a grant of priorities granted in this First Extension, the rights and obligations of the Debtor and the rights, claims, security interests, liens and priorities of the Lender with respect to all transactions which occurred prior to the occurrence of any such termination, reversal or modification, including, without limitation, all liens granted to the Lender as provided under the Final Order, shall remain unimpaired and unaffected by any termination of the Debtor's right to continue to obtain Debtor-in-Possession Financing, shall survive any such termination, reversal or modification and shall be binding upon the Debtor, any and all successors-in-interest to the Debtor, including any Chapter 11 trustee or any Chapter 7 trustee, all creditors and other parties in interest, and the Debtor's Estate (the "Estate"). During the period covered by the Second Extension, the Debtors shall use Debtor-in-Possession Financing strictly in accordance with the terms of the Budget attached hereto as Exhibit A.
4. Any notice which may be required to be given by the Lender to the Debtor or vice versa shall be sufficient if notice is given by hand delivery, or regular, certified or registered United States mail to:
As to the Debtor:
Alan M. Grochal, Esquire
Tydings Rosenberg LLP
100 East Pratt Street
Baltimore, Maryland 21202
Phone: (410) 752-9715
Facsimile: (410) 727-5460
With a copy to:
Mr. Robert Paul
The Complete Office Source, Inc.
3921 Vero Road, Suite N-Q
Halethorpe, Maryland 21227
Phone: (443)709-4900
Facsimile: (443) 709-4901
As to the Lender:
Robert F. Scholz, Esquire
Niles, Barton Wilmer, LLP
111 S. Calvert Street, Suite 1400
Baltimore, Maryland 21202
Phone (410) 783-6300
Facsimile (410) 783-6363
With a copy to:
Presidential Financial Corporation
Attention: Jerry Brown
1979 Lakeside Parkway, Suite 400
Tucker, Georgia 30084
5. Within two business days of the entry of this Second Extension, the Debtor shall promptly serve by first class mail, postage prepaid or telecopy copies of a notice of entry of the First Extension to the: (a) Lender; (b) Lender's counsel; (c) the 20 largest unsecured creditors; (d) the United States Trustee; (e) any other persons which the Debtor knows are entitled to notice under Bankruptcy Rule 4001(b) as of such date; and (f) any other party-in-interest from whom counsel to the Debtor has received a written request in this case. The notice of entry of this Second Extension shall state that any party-in-interest objecting to the entry of this Second Extension shall file a written objection with the United States Bankruptcy Court Clerk for the District of Maryland (Baltimore Division) within twenty (20) days of the date of service of the notice of entry. All other terms of the Final Order are hereby incorporated into the Second Extension by cross-reference and shall remain in full force and effect through December 26, 2008. Except as expressly provided herein, no terms of the Final Order are amended, altered or otherwise nullified.
6. The Final Order and this Second Extension may be modified or extended without further notice, time for objections, or hearing upon the consent of the parties hereto.
SO ORDERED
EXH. A
Notice Recipients Recipients submitted to the BNC (Bankruptcy Noticing Center) without an address: Recipients of Notice of Electronic Filing: Recipients submitted to the BNC (Bankruptcy Noticing Center):
The Complete Office Source Post Petition Budget Dec. 2008 Ordinary Income/Expense Income Monthly 401-00 • NET SALES Goal 401-XX Sales 220,000.00 401-XX Credits -14,500.00 Total 401-00 • NET SALES 205,500.00 Total Income 205,500.00 Cost of Goods Sold 501-00 • COST OF GOODS SOLD 501-XX Cost of Goods Sold 143,850.00 Total 501-00 • COST OF GOODS SOLD 143,850.00 Total COGS 143,850.00 Gross Profit 61,650.00 Expense 601-00 • SELLING EXPENSES 601-03 • SALARIES/COMMISSIONS 0.00 601-04 • SELLING EXPENSE — SAMPLES 100.00 601-10 • PAYROLL TAXES-SALES PERSONNEL 0.00 601-20 • INSURANCE-MEDICAL-SALES 1,387.00 601-40 • MEALS ENTERTAINMENT 100.00 601-40 • Tickets 0.00 601-41 • TRAVEL EXPENSE 500.00 601-51 • FUEL EXPENSE 800.00 601-52 • AUTO EXPENSE REPAIRS/MAINT. 125.00 601-53 • AUTO EXPENSE INSURANCE 233.33 601-54 • PARKING TOLLS 100.00 601-55 • SALES — AUTO EXPENSE 0.00 601-70 • CATALOG EXPENSE 0.00 601-71 • ADVERTISING PROMOTIONS EXP 0.00 601-80 • TELEPHONE-MOBIL PHONES 333.33 601-85 • EDUCATION AND TRAINING 0.00 Total 601-00 • SELLING EXPENSES 3,678.67 621-00 • WAREHOUSE AND DELIVERY EXPENSES 621-01 • INSTALLATION 416.67 621-02 • WRAP LABEL CHARGES 625.00 621-03 • DROP SHIP CHARGES 20.83 621-04 • OUTSIDE CARTAGE 6,250.00 621-05 • WAGES-DRIVERS/WAREHOUSE 9,666.67 621-06 • PAYROLL TAXES-DRIVERS/WAREHOUS 1,063.33 621-07 • INSURANCE-MEDICAL-DRIVER, WAREH 210.00 621-09 • VEHICLE EXPENSE-LEASE 2,220.00 621-10 • VEHICLE EXPENSE-MAINTENANCE 0.00 621-11 • VEHICLE EXPENSE-FUEL 2,500.00 621-12 • WHSE UNIFORM RENTAL 0.00 621-13 • PARKING TOLLS-WAREHOUSE 100.00 621-14 • WAREHOUSE-SUPPLIES 250.00 621-15 • EQUIPMENT REPAIR MAINT 83.33 621-16 • MOBILE PHONES — DELIVERY 208.33 621-17 • VEHICLE INSURANCE 450.00 621-18 • RECRUITING FEES 0.00 Total 621-00 • WAREHOUSE AND DELIVERY EXPENSES 24,064.17 631-00 • GENERAL AND ADMINISTRATIVE 611-12 • RENT EXPENSE 10,956.00 611-21 • UTILITIES EXPENSE 1,000.00 611-41 • INSURANCE — COMPANYILiability 140.92 611-51 • CLEANING EXPENSE 125.00 611-55 • REPAIRS AND MAINTENANCE 441.00 631-25 • GIFTS-BUSINESS 41.67 631-30 • POSTAGE 325.00 631-31 • STATIONERY PAPER SUPPLIES 416.67 631-32 • LEASE EQUIPMENT REPAIR MTC 100.00 631-35 • EQUIP. RENTAL (Copier/Mail Machine) 433.33 631-42 • CC MERCH FEES 500.00 631-43 • BANK CHARGES 500.00 631-49 • COMPUTERS COMPUTER SUPPLIES 333.33 631-50 • REPAIRS MAINTENANCE-DDMS 1,973.00 631-80 • TELEPHONE-OFFICE LINES 500.00 641-01 • WAGES-ADMINISTRATIVE 10,000.00 641-03 • OFFICER SALARY 14,000.00 641-10 • PAYROLL TAXES-ADMINISTRATIVE 1,100.00 641-13 • PAYROLL TAXES — OFFICER 1,540.00 641-15 • EMPLOYEE BENEFITS 300.00 641-20 • INSURANCE-MEDICAL-ADMIN. 1,607.00 641-21 • INSURANCE-WORK COMP-ADMIN. 400.00 641-30 • ACCOUNTING SERVICES 0.00 641-35 • BAD DEBTS 0.00 641-40 • CHARITABLE CONTRIBUTIONS 0.00 641-45 • DUES SUBSCRIPTIONS 0.00 641-55 • PROFESSIONAL FEES 0.00 641-60 • OTHER 100.00 651-10 • PERSONAL PROPERTY TAXES 125.00 651-15 • DC FRANCHISE TAX 8.33 651-20 • OTHER TAXES 22.92 Total 631-00 • GENERAL AND ADMINISTRATIVE 46,989.17 Total Expense 74,732.00 Net Ordinary Income -13,082.00 Other Income/Expense Other Income 901-30 • MISCELLANEOUS INCOME 901-06 • REBATES 503-10 PURCHASE DISCOUNTS 0.00 901-07 • INCENTIVE PROGRAMS 0.00 Total 901-30 • MISCELLANEOUS INCOME 0.00 Total Other Income 0.00 Net Other Income 0.00 Net Income before Int Fees -13,082.00 Net Income after Int Fees -19,082.00 District/Off: 0416-1 User: larter Date Created: 12/11/2008 Case: 08-18529 Form ID: pdfall Total: 119 tr No Trustee Assigned TOTAL: 1 aty Alan 2 Grochal agrochal@tydingslaw.com aty Alan M. Grochal agrochal@tydingslaw.com aty Catherine Keller Hopkin chopkin@tydingslaw.com aty Craig D. Roswell cdroswell@niles-law.com aty Robert B. Scarlett RScarlett@ScarlettCroll.com aty Robert S. Glushakow rsglush@nolanplumhoff.com aty Stephen M. Goldberg sgoldberg@tydingslaw.com TOTAL: 7 db The Complete Office Source, Inc. Caton Research Center 3921 Vero Road, Ste N-Q Halethorpe, MD 21227 cr Presidential Financial Corp/Chesapeake c/o Robert F. Scholz, Esq. Niles, Barton Wilmer, LLP 111 South Calvert Street, Suite 1400 Baltimore, MD 21202 cr Newco Enterprises, Inc. c/o Robert B. Scarlett 201 N. Charles Street Suite 600 Baltimore, Md 21201 cr Arlington Industries 1616 Lakeside Dr. Waukegan, IL 75063 acc Richard Block c/o Weil, Akman, Baylin Coleman, PA 201 West Padonia Road Suite 600 Timonium, MD 21093 acc Christopher Rosenthal Ellin Tucker, Chartered 100 South Charles St. Suite 1300 Baltimore, MD 21201 aty Tydings Rosenberg LLP c/o Alan M. Grochal, Esq. 100 East Pratt Street 26th Floor Baltimore, MD 21202 cr eCAST Settlement Corporation Bass Associates, P.C. 3936 E. Ft. Lowell Rd. Ste. #200 Tucson, AZ 85712 cr St. John Properties, Inc. c/o Robert S. Glushakow 502 Washington Avenue Suite 700 Towson, MD 21204 24667570 ACCO Brands, Inc. 75 Remittance Drive Ste. 1187 Chicago, IL 60675-1187 24667571 ACME Paper Supply Company 8229 Sandy Spring Court Savage, MD 20763 24695863 ActionEmco Holdings, LLC Robert Cooper Johnson, Morgan White 6800 Broken Sound Pkwy, 2nd Floor Boca Raton, FL 33487 24667569 Alan M. Grochal Tydings Rosenberg, LLP 100 East Pratt Street 26th Floor Baltimore, MD 21202 24667572 Allied Quick Print, Inc. 6325-1 Washington Blvd. Elkridge, MD 21075 24890028 American Assn of State Hwys 444 N. Capitol Street NW Suite 249 Washington, DC 20001-1539 24705716 Arlington Industries c/o Traci Stryker 1616 S. Lakeside Dr. Waukegan, IL 60085 24689149 Azerty, Inc. 2200 East Golf Road Des Plaines, IL 60016 24712280 Azerty, Inc. PO Box 7780-1724 Philadelphia, PA 19182 24667574 Azerty, Inc. 20 PO Box 828165 Philadelphia, PA 19182 24667578 BK Miller PO Box 860 4501-B Auth Place Temple Hills, MD 20757 24667576 Betson Imperial Parts 3431 A Benson Ave. Halethorpe, MD 21227 24667579 Blind Industries Services of MD 20 3345 Washington Blvd. Halethorpe, MD 21227 24667813 Branch of Reorganization Sec. Exch. Commission 3475 Lenox Road NE (Suite 1000) Atlanta, GA 30327-1232 24667580 Bristol Credit Inc. c/o Alan Seidel 40 York Road, Ste. 300 Towson, MD 21204 24667581 Brody Truck 20 621 South Bentalou St. Baltimore, MD 21223 24816391 COE Distributing 2900 Fairfax Traffic Way Kansas City, KS 66115 24689150 COSTCO HSBC Business Solutions 2700 Sanders Road Prospect Heights, IL 60070 24667586 COSTCO 20 HSBC Business Solutions PO Box 5219 Carol Stream, IL 60197 24890029 Camden partners holding LLC 500 East Pratt Street Suite 1200 Baltimore, MD 21202 24667582 Cavalier Business Communications PO box 9001111 Louisville, KY 40290 24710075 Chase Bank USA, NA PO BOX 15145 Wilmington, DE 19850-5145 24667585 Comptroller of Maryland 20 Revenue Admin. Division PO Box 17405 Baltimore, MD 21297 24667814 Comptroller of the Treasury Compliance Division, Room 409 301 W. Preston Street Baltimore, MD 21201 24667587 DACASSO 2350B NW 71st Place Gainesville, FL 32653 24667589 DC Treasurer 20 Office of Tax and Revenue PO Box 96384 Washington, DC 20090 24774611 DDMS/ECI2 4400 Alliance Gateway Freeway Fort Worth, TX 76177 24667588 Day-Timers, Inc. PO Box 27001 Lehigh Valley, PA 18002 24667812 Deputy County Attorney Baltimore County Office of Law 400 Washington Avenue, 2nd Floor Towson, MD 21204 24667590 Direct TV PO Box 60036 Los Angeles, CA 90060 24667592 EMCO 20 Action EMCO c/o Keybank Lockbox 74784 2025 Ontario St. Cleveland, OH 44115 24774612 Eastern Bag Paper Company 200 Research Drive Milford, CT 06460 24689151 Eastern Bag Paper Company 20 Attn: Phillip Chollet 200 Research Drive Milford, CT 06460 24667593 Ennis Business Forms PO Box 971478 Dallas, TX 75397 24709780 Ennis, Inc. 2441 Presidential Pkwy Midlothian, TX 76065 24695637 GMAC PO Box 103424 Roseville, MN 55113 24890030 Gilbert Randolph LLP 1100 New York Ave NW Suite 700 Washington, DC 20005 24817486 Government of the District of Columbia Office of Tax and Revenue 941 North Capitol St, NE Washington, DC 20002 24667594 Gussco Manufacturing LLC 33 West 19th Street, 2nd Floor New York, NY 10011 24696638 Gussco Manufacturing LLC c/o Popper Grafton Attorneys 225 West 34th Street, #1609 New York NY 10122-1600 24843869 HSBC Bank Nevada, N.A. eCAST Settlement Corporation c/o Bass Associates, P.C. 3936 E. Ft. Lowell Road, Suite #200 Tucson, AZ 85712 24667595 Henkel 32150 Just Imagine Drive Avon, OH 44011 24667596 House of Doolittle PO Box 807 Mount Prospect, IL 60056 24667810 Internal Revenue Service Centralized Insolvency Section PO Box 21126 (DP-N-781) Philadelphia, PA 19114 24667597 Jacqueline Paul 3921 Vero Rd. Halethorpe, MD 21227 24667598 Keystone 20 Star Products Attn: Charles 2038 Robert Burns Drive Aston, PA 19014 24699768 Keystone — Star Products 3010 Spring Industrial Drive Powder Springs GA 30127 Attn: Elizabeth Ortiz 24890031 Kramon Graham PA 1 South Street Suite 2600 Baltiomore, MD 21202 24890032 Kutak rock LLP 1101 Connecticut Ave NW Suite 1000 Washington, DC 20036 24667599 Leed's PO Box 643859 Pittsburgh, PA 15264 24667600 Lift Off Distribution, LLC 8735 Bollman Place, Unit J Savage, MD 20763 24667601 Lincoln Rubber Stamp Company, Inc. 4700 Belle Grove Rd. Bldg #6 Brooklyn, MD 21225 24667602 M-N-S Service Corp. 7476 New Ridge Rd. Suite E Hanover, MD 21076 24667604 Moving Company 8221 Preston Court Jessup, MD 20794 24890033 NASFAA 1101 Connecticut Ave NW Suite 1100 Washington, DC 20036 24667607 NEWCO Enterprises, Inc. 20 3650 New Town Blvd. Saint Charles, MO 63301 24667609 NYEMCO Action EMCO 5601 West Side Avenue North Bergen, NJ 07047 24667610 NYS Sales Tax Processing 20 JAF Building PO Box 1205 New York, NY 10116 24667611 NYVelocity 20 Velocity Express 770 PO Box 4730 Carol Stream, IL 60197 24699088 Naden Lean, LLC c/o Jane Poland Sopher, Esq. PO Box 253 Stevenson MD 21153 24667605 Naden/Lean LLC 20 1966 Greenspring Drive Ste. 405 Timonium One Lutherville Timonium, MD 21093 24667606 Navitor Central Accounting Office 725 Clayton Avenue Waynesboro, PA 17268 24692548 New York State Department of Taxation and Finance Bankruptcy Section PO Box 5300 Albany, NY 12205-0300 24667608 Nextel Communications PO Box 17621 Baltimore, MD 21297 24689152 OWI Printing and Promotional Products 202 Azar Court Halethorpe, MD 21227 24667612 PCA of America 8301 Sherwick Ct. Jessup, MD 20794 24667613 Platinum Plus For Business PO Box 15469 Normalville, PA 15469 24689153 Platinum Plus For Business 20 Attn: Correspondence Unit PO Box 15463 Wilmington, DE 19850-5463 24667614 Presidential Financial Corporation of Chesapeake c/o Robert F. Scholtz, Esq. 111 S. Calvert Street, Ste. 1400 Baltimore, MD 21202 24667615 Quality Park Products PO Box 802035 Chicago, IL 60680 24667616 RightBuy PO Box 7780-1724 Philadelphia, PA 19182 24774613 Robert A. Paul 20 5109 Crestfield Court Ellicott City, MD 21043 24667618 Robert Paul 3921 Vero Rd. Halethorpe, MD 21227 24667617 Robert Paul 3921 Vero Road Halethorpe, MD 21227 24667626 S. Freedman Sons, Inc. 3322 Pennsy Drive Hyattsville, MD 20785 24667627 S.P. Richards Company c/o Popper Grafton Attorneys 225 West 34th Street, #1609 New York, NY 10122-1600 24667628 SGM Bindery 7120 Rutherford Rd. Windsor Mill, MD 21244 24667811 Secretary of the Treasury 15 Pennsylvania Avenue Washington, DC 20220 24774614 Sir Sppedy 1025 W. Nursery Road Suite 100 Linthicum Heights, MD 21090 24667629 Southwest Plastic Binding 109 Millwell Ct. PO Box 150 Maryland Heights, MO 63043 24821612 Sprint Nextel Correspondence Attn Bankruptcy Dept PO Box 7949 Overland Park KS 66207-0949 24821613 Sprint Nextel Distribution Attn Bankruptcy Dept PO Box 3326 6855 S Dayton St Denver CO 80155-3326 24667630 St. John Properties, Inc. 20 2560 Lord Baltimore Drive Windsor Mill, MD 21244 24667816 State of Maryland DLLR Division of Unemployment Insurance 1100 N. Eutaw Street, Room 401 Baltimore, MD 21201 24667817 Supervisor of Delin. Accts. Rm. 1 Municipal Building Holliday Lexington Streets Baltimore, MD 21202 24667631 Swift Delivery Logistics Inc. Suite 105 10111 Martin Luther King Bowie, MD 20720 24667568 The Complete Office Source, Inc. Caton Research Center 3921 Vero Road, Ste N-Q Halethorpe, MD 21227 24667633 The Washington Redskins 20 PO Box 6838 Upper Marlboro, MD 20792 24667815 U.S. Attorney-District of MD 4th floor 36 S. Charles St. Baltimore, MD 21201 24667634 ULine 2200 S. Lakeside Drive Waukegan, IL 60085 24667637 United Stationers Attn: Supply Company 7411 Candlewood Rd. Hanover, MD 21076 24667635 United Stationers 20 PO Box 7780-1724 Philadelphia, PA 19182 24667636 United Stationers Financial Svcs, LLC c/o Popper Grafton Attys 225 West 34th St., #1609 New York, NY 10122-1600 24667638 Verizon PO Box 17577 Baltimore, MD 21297 24704495 Verizon Wireless PO Box 4009 Silver Spring, MD 20914 24667640 Visa 20 Cardmember Services PO Box 15153 Wilmington, DE 19886 24667641 WHITEROSE 20 Frank Parsons Paper Co. Inc. PO Box 759070 Baltimore, MD 21275 24774615 Weil, Akman, Baylin Coleman, PA 201 W. Padonia Road Suite 600 Lutherville Timonium, MD 21093 24890034 White Case LLP 701 13th Street NW Suite 600 S Washington, Dc 20005 24723316 Whiterose 20 Frank Parsons Paper Co., Inc. PO Box 759070 Baltimore, MD 21275-9070 24667642 Willard Packaging Co. 18940 Woodfield Rd. Gaithersburg, MD 20879 24891071 eCast Settlement Corp c/o Bass Assoc PC 3936 E Ft Lowell Rd Tucson, AZ 85712 TOTAL: 111