Opinion
Case No. 05-41108-399, Jointly Administered Under, Motion No. 220.
April 1, 2005
MARK V. BOSSI, BRIAN W. HOCKETT, THOMPSON COBURN LLC, St. Louis, MO.
ROBERT A. GREENFIELD, MARINA FINEMAN, ANDREW M. PARLEN, STUTMAN, TREISTER GLATT, PROFESSIONAL CORPORATION, Los Angeles, CA.
The Court, having considered the "Motion For Order Authorizing Assumption Of Workers' Compensation Agreement With ACE American Insurance Company Pursuant To 11 U.S.C. 365(a)" (the "Motion") filed by the Debtors and the Affidavit of Neal R. Restivo (the "Restivo Affidavit") submitted in support thereof, the Response filed thereto by ACE American Insurance Company ("ACE"), and the Debtors' Reply to the ACE Response, finds that:
Terms not otherwise defined herein shall have the same meaning ascribed to them in the Motion.
(i). notice of the Motion was appropriate under the circumstances; and
(ii) pursuant to a compromise agreement reached between the Debtors and
ACE, the Debtors agreed to assume the Workers Compensation and Employers Liability Insurance Policy No. WLR C44167177 (the "Insurance Policy"), the Program Agreement effective November 1, 2004 (the "Program Agreement") insofar as they each relate to workers' compensation coverage, on the terms set forth in the Motion and as reflected in the record for the hearing of the Motion.
IT IS HEREBY ORDERED that:
1. The Motion is granted as set forth below and as reflected in the record of the hearing.
2. Pursuant to 11 U.S.C. § 365 and Federal Rule of Bankruptcy Procedure 6006, the assumption of the Insurance Policy and the Program Agreement, insofar as they each relate to workers' compensation coverage, on the terms set forth in the Motion and on the record for the hearing on the Motion is approved.
3. The Debtors are authorized to provide a letter of credit in the amount of $1,050,000 to ACE no later than March 31, 2005, and the assumption of the Insurance Policy and the Program Agreement, as they each relate to workers' compensation coverage, will become effective only upon the provision of such collateral.
4. This Order is without prejudice to the rights of the Debtors and ACE to agree to any change in the amount of the letter of credit at a future date.
5. ACE may enforce all of its rights and remedies under the Insurance Policy and Program Agreement, as they each relate to workers' compensation coverage, in the event the Debtors later default, without first obtaining relief from the automatic stay.
6. No later than three (3) business days after the date of this order, the Debtors are directed to serve a copy of the order in accordance with the Court's order establishing notice procedures and are directed to file a certificate of service no later than two (2) business days after service.