Opinion
Case No. 08-18529-JS.
December 15, 2008
Robert L. Hanley, Jr., Nolan, Plumhoff Williams, Chtd., Towson, Maryland, Attorneys for Landlord.
Alan M. Grochal, Bar No. 01447, Tydings Rosenberg LLP, Baltimore, Maryland, Attorneys for Debtor.
St. John Properties, Inc., landlord and movant (the "Landlord"), and The Complete Office Source, Inc., debtor and respondent (the "Debtor"), by their respective attorneys, hereby stipulate and agree as follows:
1. On June 30, 2008, the Debtor filed a Voluntary Petition under Chapter 11 of the Bankruptcy Code and since that time, has continued to operate its business as a debtor-in-possession pursuant to §§ 1107 and 1108 of the Bankruptcy Code.
2. The Debtor currently leases warehouse space located at 3921 Vero Road, Baltimore, Maryland 21227 from the Landlord.
3. On October 15, 2008, the Debtor filed a Motion to Extend the Period Within Which to Assume or Reject Unexpired Lease on Non-Residential Real Property, which motion was subsequently granted by this Court.
4. On or about November 21, 2008, the Landlord filed a Motion to Require Debtor to Assume or Reject Unexpired Lease of Non-Residential Real Property on or before December 15, 2008 (the "Motion").
5. On November 14, 2008, the Debtor filed a Motion for Authority to (I) Assume and Assign Executory Contracts Related to the Sale of Coffee Products by Debtor, and (II) Sell Substantially All of Debtor's Assets Free and Clear of Liens, Claims, Encumbrances and Interests Except that the Lien of Presidential Financial Corporation Shall Attach to the Sale Proceeds (the "Sale Motion").
6. A hearing has been scheduled on the Sale Motion for December 5, 2008. Even assuming that the Sale Motion is approved by this Court on December 5, 2008, it is anticipated that closing on the sale will not occur until December 15, 2008 at the earliest. Accordingly, the Debtor believes that it will not be in a position to reject the lease at 3921 Vero Road, Baltimore, Maryland 21227 and vacate the premises until December 22, 2008.
7. In an effort to reconcile the Landlord's need to obtain possession of its premises at the earliest possible date, coupled with the Debtor's continuing need to utilize the premises until such time as the sale is able to close, the Landlord and the Debtor entered into an agreement as follows:
(a) the lease at 3921 Vero Road, Baltimore, Maryland 21227 between the Debtor and the Landlord shall be rejected effective December 22, 2008;
(b) on or before December 22, 2008, the Debtor shall vacate the premises at 3921 Vero Road and return them to the Landlord in accordance with the lease; and
(c) that any post-petition claim owed to the Landlord by the Debtor shall be paid to the Landlord in the following manner: (1) $7,500 within five (5) days of closing on the sale of the Debtor's business to Impact Office Products, LLC, with closing anticipated to occur on or about December 15, 2008; and (2) the balance to be paid within thirty (30) days thereafter.