This document is a motion filed in bankruptcy court by Lyon Workspace Products, L.L.C. and related entities seeking authorization to pay prepetition employee wage and benefit obligations. Specifically, the debtors are requesting permission to pay approximately $130,000 in accrued but unpaid wages, $200,000 in accrued but unpaid sales commissions, $300,000 in accrued vacation time, $12,000 in unreimbursed expenses, and $400,000 in upcoming health insurance claims. The debtors also want to continue deducting amounts from employee paychecks for items such as taxes, insurance premiums, and 401(k) contributions and to honor these obligations going forward.
This document provides an overview of accounting for various types of employee benefits, including wages and salaries, compensated absences (such as annual leave, sick leave, long service leave), profit sharing and bonus plans, and termination benefits. It discusses the recognition, measurement, and disclosure requirements of AASB 119 Employee Benefits for each type of benefit.
Nacpil vs. international broadcasting corporationquinnee02
This case concerns a petition filed by Dily Dany Nacpil against the International Broadcasting Corporation regarding his dismissal. The Court of Appeals had ruled that the Labor Arbiter did not have jurisdiction over the case. The Supreme Court affirmed, finding that as the petitioner was appointed Comptroller with the approval of IBC's Board of Directors, he was considered a corporate officer, making this an intra-corporate dispute under the jurisdiction of the Securities and Exchange Commission rather than the labor courts. The Court also held that the IBC's failure to post an appeal bond did not prevent the Court of Appeals from ruling on the jurisdiction issue.
Judgement Passed by The Hon'ble Supreme Court in the Matter of Ebix Singapore...Mahender Kumar Khandelwal
The Supreme Court (“Hon’ble Court”) vide its judgment dated 13th September 2021, in Ebix Singapore Pte Ltd vs. Committee of Creditors of Educomp Solutions Limited and Ors. (“Ebix Appeal”) has decided on the long-pending issue relating to the withdrawal of the Resolution Plan submitted by the Resolution Applicant (“RA”) for the revival of a Corporate Debtor after its approval by the Committee of Creditors in accordance with Section 30(4) of the Insolvency and Bankruptcy Code, 2016 (“IBC”).
This document provides information about the Defense Base Act (DBA), which provides compensation and medical benefits to employees injured while working overseas for contractors of the US government. It offers answers to 29 frequently asked questions about the DBA and details who is covered, available benefits, claims procedures, employer responsibilities, and the role of the Office of Workers' Compensation Programs district offices in administering DBA claims. Key topics covered include what is considered "public work" under the DBA, how to file new and death benefit claims, employer responsibilities after an injury report, and insurance requirements.
DBA Basics for USAID Contractors & GranteesOlga Wall
The document summarizes Defense Base Act (DBA) insurance benefits for employees of USAID contractors and grantees working overseas. It explains that DBA provides disability and medical benefits for work-related injuries as well as death benefits for survivors. It details who is covered, benefits provided, claims procedures, and gives examples of benefit calculations for both injury and death.
Thought paper- Admission of time-barred debt under IBC- A case of limitless l...Shruti Jadhav
This document discusses the divergent views taken by various benches of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) on whether the Limitation Act applies to proceedings under the Insolvency and Bankruptcy Code regarding initiation of corporate insolvency resolution process based on time-barred debt. While most NCLT benches have held that the Limitation Act applies, the NCLAT in the Speculum Plast case held that it does not apply. The Supreme Court has since stayed the NCLAT order. The document analyzes the relevant provisions and case laws on both sides of the issue.
The document discusses recent changes to India's Insolvency and Bankruptcy Code (IBC) regime through amendments introduced by an Ordinance and subsequent Act. Key changes include:
1) Stricter eligibility criteria for resolution applicants, including disqualifying wilful defaulters, fraudulent entities, and those associated with non-performing assets.
2) Connected persons of ineligible resolution applicants are also barred from submitting resolution plans.
3) The committee of creditors must consider a resolution plan's feasibility and viability before approving it.
4) Liquidators are prohibited from selling bankrupt companies' assets to ineligible resolution applicants.
Taxmann's Consumer Protection Law & Practice Taxmann
This book is a Comprehensive Guide to New Consumer Protection Law, which is enforced with effect from 20-7-2020/24-7-2020.
What sets this book apart is the compact-comprehensive-commentary supplemented by compilation of the annotated text of the new Consumer Protection Law with Act, Rules, Regulation, Circulars & Notifications, and Draft Rules & Regulations.
The Present Publication is the Latest Edition, updated till 28th July 2020. Coverage of this book includes:
• Guide to Consumer Protection Act, 2019 [Commentary]
○ Background of Consumer Protection Act, 2019
○ What is Consumer Dispute
○ Deficiency in Service
○ Unfair Contracts and Restrictive and Unfair Trade Practices
○ Product Liability
○ Constitution of Consumer Disputes Redressal Commission
○ Constitution & Procedural Aspects of Consumer Disputes
Redressal Commission
○ Mediation
○ Central Consumer Protection Authority
○ Offences and Penalties
○ Consumer Protection Councils
○ Regulation of E-Commerce
○ Direct Selling
○ Other Provisions of the Consumer Protection Act
• Consumer Protection Act, 2019
• Rules & Regulation Framed under the Consumer Protection
Act, 2019
○ Consumer Protection (Central Consumer Protection Council)
Rules, 2020
○ Consumer Protection (Consumer Disputes Redressal
Commissions) Rules, 2020
○ Consumer Protection (General) Rules, 2020
○ Consumer Protection (Mediation) Rules, 2020
○ Consumer Protection (Salary, Allowances and Conditions of
Service of President and Members of the State Commission
and District Commission) Model Rules, 2020
○ Consumer Protection (Qualification for Appointment, Method
of Recruitment, Procedure of Appointment, Term of Office,
Resignation and Removal of the President and Members of
the State Commission and District Commission) Rules, 2020
○ Consumer Protection (E-Commerce) Rules, 2020
○ Consumer Protection (Consumer Commission Procedure)
Regulation, 2020
○ Consumer Protection (Administrative Control over the State
○ Commission and the District Commission) Regulation, 2020
○ Consumer Protection (Mediation) Regulations, 2020
• Circulars and Notifications
• Draft Rules and Regulations Framed under the Consumer
Protection Act, 2019
• Tables:
○ Tables showing sections of the Consumer Protection Act 2019
& corresponding provisions of Consumer Protection Act 1986
and vice-versa
○ Tables showing the date of enforcement of sections of the
Consumer Protection Act, 2019
This document provides an overview of accounting for various types of employee benefits, including wages and salaries, compensated absences (such as annual leave, sick leave, long service leave), profit sharing and bonus plans, and termination benefits. It discusses the recognition, measurement, and disclosure requirements of AASB 119 Employee Benefits for each type of benefit.
Nacpil vs. international broadcasting corporationquinnee02
This case concerns a petition filed by Dily Dany Nacpil against the International Broadcasting Corporation regarding his dismissal. The Court of Appeals had ruled that the Labor Arbiter did not have jurisdiction over the case. The Supreme Court affirmed, finding that as the petitioner was appointed Comptroller with the approval of IBC's Board of Directors, he was considered a corporate officer, making this an intra-corporate dispute under the jurisdiction of the Securities and Exchange Commission rather than the labor courts. The Court also held that the IBC's failure to post an appeal bond did not prevent the Court of Appeals from ruling on the jurisdiction issue.
Judgement Passed by The Hon'ble Supreme Court in the Matter of Ebix Singapore...Mahender Kumar Khandelwal
The Supreme Court (“Hon’ble Court”) vide its judgment dated 13th September 2021, in Ebix Singapore Pte Ltd vs. Committee of Creditors of Educomp Solutions Limited and Ors. (“Ebix Appeal”) has decided on the long-pending issue relating to the withdrawal of the Resolution Plan submitted by the Resolution Applicant (“RA”) for the revival of a Corporate Debtor after its approval by the Committee of Creditors in accordance with Section 30(4) of the Insolvency and Bankruptcy Code, 2016 (“IBC”).
This document provides information about the Defense Base Act (DBA), which provides compensation and medical benefits to employees injured while working overseas for contractors of the US government. It offers answers to 29 frequently asked questions about the DBA and details who is covered, available benefits, claims procedures, employer responsibilities, and the role of the Office of Workers' Compensation Programs district offices in administering DBA claims. Key topics covered include what is considered "public work" under the DBA, how to file new and death benefit claims, employer responsibilities after an injury report, and insurance requirements.
DBA Basics for USAID Contractors & GranteesOlga Wall
The document summarizes Defense Base Act (DBA) insurance benefits for employees of USAID contractors and grantees working overseas. It explains that DBA provides disability and medical benefits for work-related injuries as well as death benefits for survivors. It details who is covered, benefits provided, claims procedures, and gives examples of benefit calculations for both injury and death.
Thought paper- Admission of time-barred debt under IBC- A case of limitless l...Shruti Jadhav
This document discusses the divergent views taken by various benches of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) on whether the Limitation Act applies to proceedings under the Insolvency and Bankruptcy Code regarding initiation of corporate insolvency resolution process based on time-barred debt. While most NCLT benches have held that the Limitation Act applies, the NCLAT in the Speculum Plast case held that it does not apply. The Supreme Court has since stayed the NCLAT order. The document analyzes the relevant provisions and case laws on both sides of the issue.
The document discusses recent changes to India's Insolvency and Bankruptcy Code (IBC) regime through amendments introduced by an Ordinance and subsequent Act. Key changes include:
1) Stricter eligibility criteria for resolution applicants, including disqualifying wilful defaulters, fraudulent entities, and those associated with non-performing assets.
2) Connected persons of ineligible resolution applicants are also barred from submitting resolution plans.
3) The committee of creditors must consider a resolution plan's feasibility and viability before approving it.
4) Liquidators are prohibited from selling bankrupt companies' assets to ineligible resolution applicants.
Taxmann's Consumer Protection Law & Practice Taxmann
This book is a Comprehensive Guide to New Consumer Protection Law, which is enforced with effect from 20-7-2020/24-7-2020.
What sets this book apart is the compact-comprehensive-commentary supplemented by compilation of the annotated text of the new Consumer Protection Law with Act, Rules, Regulation, Circulars & Notifications, and Draft Rules & Regulations.
The Present Publication is the Latest Edition, updated till 28th July 2020. Coverage of this book includes:
• Guide to Consumer Protection Act, 2019 [Commentary]
○ Background of Consumer Protection Act, 2019
○ What is Consumer Dispute
○ Deficiency in Service
○ Unfair Contracts and Restrictive and Unfair Trade Practices
○ Product Liability
○ Constitution of Consumer Disputes Redressal Commission
○ Constitution & Procedural Aspects of Consumer Disputes
Redressal Commission
○ Mediation
○ Central Consumer Protection Authority
○ Offences and Penalties
○ Consumer Protection Councils
○ Regulation of E-Commerce
○ Direct Selling
○ Other Provisions of the Consumer Protection Act
• Consumer Protection Act, 2019
• Rules & Regulation Framed under the Consumer Protection
Act, 2019
○ Consumer Protection (Central Consumer Protection Council)
Rules, 2020
○ Consumer Protection (Consumer Disputes Redressal
Commissions) Rules, 2020
○ Consumer Protection (General) Rules, 2020
○ Consumer Protection (Mediation) Rules, 2020
○ Consumer Protection (Salary, Allowances and Conditions of
Service of President and Members of the State Commission
and District Commission) Model Rules, 2020
○ Consumer Protection (Qualification for Appointment, Method
of Recruitment, Procedure of Appointment, Term of Office,
Resignation and Removal of the President and Members of
the State Commission and District Commission) Rules, 2020
○ Consumer Protection (E-Commerce) Rules, 2020
○ Consumer Protection (Consumer Commission Procedure)
Regulation, 2020
○ Consumer Protection (Administrative Control over the State
○ Commission and the District Commission) Regulation, 2020
○ Consumer Protection (Mediation) Regulations, 2020
• Circulars and Notifications
• Draft Rules and Regulations Framed under the Consumer
Protection Act, 2019
• Tables:
○ Tables showing sections of the Consumer Protection Act 2019
& corresponding provisions of Consumer Protection Act 1986
and vice-versa
○ Tables showing the date of enforcement of sections of the
Consumer Protection Act, 2019
The document provides an overview of security of payment claims under the NSW Building and Construction Industry Security of Payment Act 1999. It outlines the key steps if a party is served with a security of payment claim, including serving a payment schedule within 10 days and potential adjudication of the claim if payment is withheld. The summary also details what should be included in payment claims, payment schedules, adjudication applications and responses to adhere to the strict time limits under the Act.
Alliance Seminar on 2-3-16 -- Power Point re Workers' CompensationRena Flovin
This document provides summaries of recent case law and regulatory updates in California workers' compensation law. It summarizes several cases, including:
1) Francis Stevens v. WCAB, which upheld the constitutionality of the Independent Medical Review process.
2) Angelotti Chiropractic v. Baker, which upheld the constitutionality of lien activation fees.
3) Douglas O'Connor v. Uber Technologies, which found Uber drivers are presumptively employees under California law.
It also summarizes recent regulatory changes such as new mileage reimbursement rates, revised SJDB voucher forms, reinstatement of lien activation fees, and updates to temporary total disability rates.
AMENDMENTS TO SARFAESI ACT/RULES/DRT ACT AND RULES WHICH HAVE BEEN ENFORCEDMukesh Chand
The document summarizes key amendments to the Security Interest (Enforcement) Rules, 2002 and the Debt Recovery Tribunal (Procedure) Rules, 1993 in India that came into effect from November 4, 2016. Some of the major changes include:
1) Allowing delivery of notices by hand delivery in addition to other modes.
2) Reducing the notice period for subsequent auctions of secured assets from 30 days to 15 days.
3) Allowing service of notices via email in addition to other modes.
4) Providing for public auctions, including e-auctions of secured assets.
5) Reducing timelines for filing written statements and replies in DRT recovery applications.
Historical development of insolvency and bankruptcy lawJaskaran Singh
This document provides an overview of the historical development of insolvency and bankruptcy laws in India. It discusses how the earliest laws were introduced under British rule in the 1800s and traces developments over time, including key reports and committees that shaped reforms. Major milestones discussed include the Presidency Towns Insolvency Act of 1909, the Provincial Insolvency Act of 1920, the Sick Industrial Companies Act of 1985, and recommendations of committees in the 1990s-2000s that led to the Insolvency and Bankruptcy Code of 2016.
Attached Newsletter is an attempt to cover monthly issues relevant in the context of transactions - covers SEBI, Companies Act, Income Tax, Stamp duty and other regulatory changes
The document is a Form 8-K filed by Micron Technology, Inc. with the SEC on November 20, 2007. It summarizes that the company's Compensation Committee approved an amendment to Micron's proposed 2007 Equity Incentive Plan to remove language allowing unused shares from options and stock appreciation rights to be reused. The amended plan will be submitted for shareholder approval at Micron's annual meeting on December 4, 2007. A copy of the amended plan is included as an exhibit to the Form 8-K filing.
Judicial Pronouncements Relating to Insolvency Professionals Madhusudan Sharma
The document discusses several key issues relating to insolvency professionals (IPs) under the Insolvency and Bankruptcy Code 2016 in India, including:
1) Supreme Court rulings on making adverse remarks against professionals and the need to avoid uncalled for observations without giving an opportunity to be heard.
2) The role and responsibilities of IPs such as the interim resolution professional or resolution professional, who are facilitators of the insolvency process and do not have adjudicatory powers.
3) Examples of judicial support and directions given to ensure cooperation with IPs and assist them in discharging their duties.
The document summarizes key aspects of Italian bankruptcy law regarding "Concordato Preventivo Proceeding" (CPP), an insolvency process that allows distressed companies to negotiate debts under court supervision.
Section 168 provides an "automatic stay" that prevents creditors from enforcing or continuing claims against the debtor's assets from when the CPP petition is filed until the plan is confirmed. Section 184 makes the confirmed CPP plan binding on pre-filing creditors, though they can still pursue jointly liable entities or guarantors. The document distinguishes between pre-filing and post-filing claims and how they are treated under the CPP.
The document discusses the Workmen's Compensation Act of 1923 in Bangladesh. It provides compensation to workers who are injured or disabled in the course of their employment. The act aims to financially protect workers and their dependents in cases of accidental workplace injuries. It discusses the types of compensation provided, including compensation for death, permanent total disability, and permanent partial disability. It also discusses factors like medical benefits, temporary disability benefits, and permanent disability benefits as outlined in the act.
Mardia chemicals case by shreya a322509022Shreya Ganguly
This case involves a challenge to the validity of certain provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. [1] The Supreme Court upheld the main provisions of the Act, including Section 13 which allows secured creditors to enforce security interests without court intervention. [2] However, the Court struck down the requirement under Section 17(2) that borrowers deposit 75% of the claimed amount before appealing to the Debt Recovery Tribunal, finding it to be an arbitrary requirement. [3] Overall the judgment upheld the main structure of the Act but identified some deficiencies, such as not addressing the tension between the Act and the Companies Act regarding winding up of companies.
The document discusses banking and financing regulations and practices in Tanzania. It covers requirements for bank and non-bank lenders, types of security that can be taken over different asset classes, guarantees, enforcement of contracts and security, bankruptcy processes, and trends in cross-border financing. Key points include that banks must be licensed by the Bank of Tanzania, security can be taken through charges, pledges, mortgages and assignments but require registration, and insolvency processes provide for compromise arrangements, administration and winding up but creditors can influence the process.
The Enforcement of Security Interest and Recovery of Debts Laws and Miscellan...Mukesh Chand
This document summarizes key changes made to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) through an amendment act passed in 2016. Some major changes include renaming securitization companies as asset reconstruction companies, allowing non-institutional investors to invest in security receipts, expanding the definition of secured creditor and secured interest, and granting additional powers to the Reserve Bank of India to regulate and audit asset reconstruction companies. The amendments updated various definitions, widened the scope of certain provisions, and exempted asset reconstruction companies from stamp duty in certain asset acquisition transactions.
Debts Recovery Tribunals and Appellate Tribunals(DRT & DART)Abinash Mandilwar
The document discusses the Debt Recovery Tribunal (DRT) process in India for recovering debts owed to banks and financial institutions. It provides details on the structure and jurisdiction of DRTs and Debt Recovery Appellate Tribunals (DRATs). The summary is:
[1] DRTs are special quasi-judicial forums established under the Recovery of Debts due to Banks and Financial Institution Act, 1993 to allow for the speedy recovery of loans owed to banks and financial institutions.
[2] The document outlines the procedures for banks to file recovery applications with the DRT, including prerequisites taken before filing and requirements for the application.
[3] It also describes the DRT procedures after an
The document is a memorandum from the Director of the Office of Management and Budget providing guidance to executive departments and agencies on planning for operations during a potential lapse in appropriations. It reminds agencies to update their contingency plans consistent with OMB guidance and applicable legal opinions. Agencies should ensure only excepted activities that can legally continue during a lapse in funding would be performed. The memorandum also includes an attachment with frequently asked questions on contracting, grants, and payments during a lapse in appropriations to help guide agencies.
This document summarizes three workers' compensation case law reviews related to attorney fees and benefits. The first case discusses whether attorney fees should be calculated on the gross or net amount of benefits when an offset is taken for social security disability income. The second case examines whether a third party respondent can be awarded attorney fees. The third case addresses when impairment ratings should be determined under the edition of the AMA Guides in effect at the time of injury or time of MMI.
The document discusses upcoming changes to UCC Article 9 including clarifying rules around control of electronic chattel paper, location of debtor provisions, and continued perfection following a change in governing law. It also covers creating a security interest, such as how attachment works for future advances and automatic attachment for certain collateral types. The presentation provides an overview of the revisions and important concepts in secured transactions.
Protecting Your Company’s Accounts Receivable Before Bankruptcy Hits (Webinar)ArielMcCurdy
Presented by BARR Credit Services with Wanda Borges, Esq. – Borges & Associates, LLC
About the Webinar
As the world begins to recover from the COVID-19 pandemic the tsunami of bankruptcy filings is not at an end. It is more important than ever for credit executives to be proactive in protecting their company’s accounts receivable even before they become due.
As companies have reopened their businesses, trade credit grantors are being asked to extend credit, sometimes with larger dollar exposures. Utilizing the tools available to you can safeguard your company from a bad debt exposure in the future even if your customer files for chapter 11 protection.
Credit grantors will also want to insulate themselves from a potential preference attack in a future Chapter 11 proceeding. This program will discuss how to determine which tool is the best option for your company and how to properly document that choice once you have decided.
About the Presenter: Wanda Borges
Wanda Borges, Esq is the principal member of Borges & Associates, LLC, a law firm based in Syosset, New York. For more than forty years, Ms. Borges has concentrated her practice on commercial litigation and creditors’ rights in bankruptcy matters, representing corporate clients and creditors’ committees throughout the United States in Chapter 11 proceedings, out of court settlements, commercial transactions and preference litigation.
She is a member and Past President of the Commercial Law League of America and has been an Attorney Member of its National Board of Governors, a Chair of the Bankruptcy Section and Creditors’ Rights Section. She is the President of the Commercial Law League Fund for Public Education. She is a member of several bar associations, including the American Bar Association and the American Bankruptcy Institute. Ms. Borges serves on the Board of Directors of the International Association of Commercial Collectors, of which her firm is an associate member.
She is an internationally recognized lecturer and author on various legal topics including Bankruptcy Issues such as 503(b)(9) claims and preferences, the Uniform Commercial Code, ECOA, FCRA, antitrust law, and current legal issues such as Credit Card Surcharge issues, Social Media, Cybersecurity and Ethics for the Trade Credit Grantor and current proposed legislation that may impact trade credit grantors.
Taxmann's Guide to SARFAESI Act 2002 & Recovery of Debts and Bankruptcy Act 1993Taxmann
This document provides an overview of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It discusses the background and objectives of the Act, key features such as enforcement of security, securitization, and asset reconstruction. It also examines related topics such as the constitutional validity of the Act, applicability to different entities, and interactions with other laws like the Recovery of Debts and Bankruptcy Act, 1993 and Insolvency and Bankruptcy Code, 2016. The document outlines the procedures for enforcement of security, sale of secured assets, appeals and penalties under the SARFAESI Act.
The debtor, Cordillera Golf Club, LLC, filed a motion seeking authorization to retain and pay certain professionals utilized in the ordinary course of business without requiring each professional to file a formal application for employment. The motion proposed procedures for retaining ordinary course professionals, including requiring the professionals to file declarations of disinterestedness, limiting monthly payments to $25,000 per professional absent a fee application, and requiring the debtor to file quarterly reports on payments to the professionals. The debtor argued this relief was necessary to avoid disruption to its business operations and pending litigation matters.
The debtor, Cordillera Golf Club, LLC, filed a motion seeking authorization to retain and pay certain professionals utilized in the ordinary course of business without requiring each professional to file a formal application for employment. The motion proposed procedures for retaining ordinary course professionals, including requiring the professionals to file declarations of disinterestedness, limiting monthly payments to $25,000 per professional absent a fee application, and requiring the debtor to file quarterly reports on payments to the professionals. The debtor argued this relief was necessary to avoid disruption to its business operations and pending litigation matters.
The document provides an overview of security of payment claims under the NSW Building and Construction Industry Security of Payment Act 1999. It outlines the key steps if a party is served with a security of payment claim, including serving a payment schedule within 10 days and potential adjudication of the claim if payment is withheld. The summary also details what should be included in payment claims, payment schedules, adjudication applications and responses to adhere to the strict time limits under the Act.
Alliance Seminar on 2-3-16 -- Power Point re Workers' CompensationRena Flovin
This document provides summaries of recent case law and regulatory updates in California workers' compensation law. It summarizes several cases, including:
1) Francis Stevens v. WCAB, which upheld the constitutionality of the Independent Medical Review process.
2) Angelotti Chiropractic v. Baker, which upheld the constitutionality of lien activation fees.
3) Douglas O'Connor v. Uber Technologies, which found Uber drivers are presumptively employees under California law.
It also summarizes recent regulatory changes such as new mileage reimbursement rates, revised SJDB voucher forms, reinstatement of lien activation fees, and updates to temporary total disability rates.
AMENDMENTS TO SARFAESI ACT/RULES/DRT ACT AND RULES WHICH HAVE BEEN ENFORCEDMukesh Chand
The document summarizes key amendments to the Security Interest (Enforcement) Rules, 2002 and the Debt Recovery Tribunal (Procedure) Rules, 1993 in India that came into effect from November 4, 2016. Some of the major changes include:
1) Allowing delivery of notices by hand delivery in addition to other modes.
2) Reducing the notice period for subsequent auctions of secured assets from 30 days to 15 days.
3) Allowing service of notices via email in addition to other modes.
4) Providing for public auctions, including e-auctions of secured assets.
5) Reducing timelines for filing written statements and replies in DRT recovery applications.
Historical development of insolvency and bankruptcy lawJaskaran Singh
This document provides an overview of the historical development of insolvency and bankruptcy laws in India. It discusses how the earliest laws were introduced under British rule in the 1800s and traces developments over time, including key reports and committees that shaped reforms. Major milestones discussed include the Presidency Towns Insolvency Act of 1909, the Provincial Insolvency Act of 1920, the Sick Industrial Companies Act of 1985, and recommendations of committees in the 1990s-2000s that led to the Insolvency and Bankruptcy Code of 2016.
Attached Newsletter is an attempt to cover monthly issues relevant in the context of transactions - covers SEBI, Companies Act, Income Tax, Stamp duty and other regulatory changes
The document is a Form 8-K filed by Micron Technology, Inc. with the SEC on November 20, 2007. It summarizes that the company's Compensation Committee approved an amendment to Micron's proposed 2007 Equity Incentive Plan to remove language allowing unused shares from options and stock appreciation rights to be reused. The amended plan will be submitted for shareholder approval at Micron's annual meeting on December 4, 2007. A copy of the amended plan is included as an exhibit to the Form 8-K filing.
Judicial Pronouncements Relating to Insolvency Professionals Madhusudan Sharma
The document discusses several key issues relating to insolvency professionals (IPs) under the Insolvency and Bankruptcy Code 2016 in India, including:
1) Supreme Court rulings on making adverse remarks against professionals and the need to avoid uncalled for observations without giving an opportunity to be heard.
2) The role and responsibilities of IPs such as the interim resolution professional or resolution professional, who are facilitators of the insolvency process and do not have adjudicatory powers.
3) Examples of judicial support and directions given to ensure cooperation with IPs and assist them in discharging their duties.
The document summarizes key aspects of Italian bankruptcy law regarding "Concordato Preventivo Proceeding" (CPP), an insolvency process that allows distressed companies to negotiate debts under court supervision.
Section 168 provides an "automatic stay" that prevents creditors from enforcing or continuing claims against the debtor's assets from when the CPP petition is filed until the plan is confirmed. Section 184 makes the confirmed CPP plan binding on pre-filing creditors, though they can still pursue jointly liable entities or guarantors. The document distinguishes between pre-filing and post-filing claims and how they are treated under the CPP.
The document discusses the Workmen's Compensation Act of 1923 in Bangladesh. It provides compensation to workers who are injured or disabled in the course of their employment. The act aims to financially protect workers and their dependents in cases of accidental workplace injuries. It discusses the types of compensation provided, including compensation for death, permanent total disability, and permanent partial disability. It also discusses factors like medical benefits, temporary disability benefits, and permanent disability benefits as outlined in the act.
Mardia chemicals case by shreya a322509022Shreya Ganguly
This case involves a challenge to the validity of certain provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. [1] The Supreme Court upheld the main provisions of the Act, including Section 13 which allows secured creditors to enforce security interests without court intervention. [2] However, the Court struck down the requirement under Section 17(2) that borrowers deposit 75% of the claimed amount before appealing to the Debt Recovery Tribunal, finding it to be an arbitrary requirement. [3] Overall the judgment upheld the main structure of the Act but identified some deficiencies, such as not addressing the tension between the Act and the Companies Act regarding winding up of companies.
The document discusses banking and financing regulations and practices in Tanzania. It covers requirements for bank and non-bank lenders, types of security that can be taken over different asset classes, guarantees, enforcement of contracts and security, bankruptcy processes, and trends in cross-border financing. Key points include that banks must be licensed by the Bank of Tanzania, security can be taken through charges, pledges, mortgages and assignments but require registration, and insolvency processes provide for compromise arrangements, administration and winding up but creditors can influence the process.
The Enforcement of Security Interest and Recovery of Debts Laws and Miscellan...Mukesh Chand
This document summarizes key changes made to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) through an amendment act passed in 2016. Some major changes include renaming securitization companies as asset reconstruction companies, allowing non-institutional investors to invest in security receipts, expanding the definition of secured creditor and secured interest, and granting additional powers to the Reserve Bank of India to regulate and audit asset reconstruction companies. The amendments updated various definitions, widened the scope of certain provisions, and exempted asset reconstruction companies from stamp duty in certain asset acquisition transactions.
Debts Recovery Tribunals and Appellate Tribunals(DRT & DART)Abinash Mandilwar
The document discusses the Debt Recovery Tribunal (DRT) process in India for recovering debts owed to banks and financial institutions. It provides details on the structure and jurisdiction of DRTs and Debt Recovery Appellate Tribunals (DRATs). The summary is:
[1] DRTs are special quasi-judicial forums established under the Recovery of Debts due to Banks and Financial Institution Act, 1993 to allow for the speedy recovery of loans owed to banks and financial institutions.
[2] The document outlines the procedures for banks to file recovery applications with the DRT, including prerequisites taken before filing and requirements for the application.
[3] It also describes the DRT procedures after an
The document is a memorandum from the Director of the Office of Management and Budget providing guidance to executive departments and agencies on planning for operations during a potential lapse in appropriations. It reminds agencies to update their contingency plans consistent with OMB guidance and applicable legal opinions. Agencies should ensure only excepted activities that can legally continue during a lapse in funding would be performed. The memorandum also includes an attachment with frequently asked questions on contracting, grants, and payments during a lapse in appropriations to help guide agencies.
This document summarizes three workers' compensation case law reviews related to attorney fees and benefits. The first case discusses whether attorney fees should be calculated on the gross or net amount of benefits when an offset is taken for social security disability income. The second case examines whether a third party respondent can be awarded attorney fees. The third case addresses when impairment ratings should be determined under the edition of the AMA Guides in effect at the time of injury or time of MMI.
The document discusses upcoming changes to UCC Article 9 including clarifying rules around control of electronic chattel paper, location of debtor provisions, and continued perfection following a change in governing law. It also covers creating a security interest, such as how attachment works for future advances and automatic attachment for certain collateral types. The presentation provides an overview of the revisions and important concepts in secured transactions.
Protecting Your Company’s Accounts Receivable Before Bankruptcy Hits (Webinar)ArielMcCurdy
Presented by BARR Credit Services with Wanda Borges, Esq. – Borges & Associates, LLC
About the Webinar
As the world begins to recover from the COVID-19 pandemic the tsunami of bankruptcy filings is not at an end. It is more important than ever for credit executives to be proactive in protecting their company’s accounts receivable even before they become due.
As companies have reopened their businesses, trade credit grantors are being asked to extend credit, sometimes with larger dollar exposures. Utilizing the tools available to you can safeguard your company from a bad debt exposure in the future even if your customer files for chapter 11 protection.
Credit grantors will also want to insulate themselves from a potential preference attack in a future Chapter 11 proceeding. This program will discuss how to determine which tool is the best option for your company and how to properly document that choice once you have decided.
About the Presenter: Wanda Borges
Wanda Borges, Esq is the principal member of Borges & Associates, LLC, a law firm based in Syosset, New York. For more than forty years, Ms. Borges has concentrated her practice on commercial litigation and creditors’ rights in bankruptcy matters, representing corporate clients and creditors’ committees throughout the United States in Chapter 11 proceedings, out of court settlements, commercial transactions and preference litigation.
She is a member and Past President of the Commercial Law League of America and has been an Attorney Member of its National Board of Governors, a Chair of the Bankruptcy Section and Creditors’ Rights Section. She is the President of the Commercial Law League Fund for Public Education. She is a member of several bar associations, including the American Bar Association and the American Bankruptcy Institute. Ms. Borges serves on the Board of Directors of the International Association of Commercial Collectors, of which her firm is an associate member.
She is an internationally recognized lecturer and author on various legal topics including Bankruptcy Issues such as 503(b)(9) claims and preferences, the Uniform Commercial Code, ECOA, FCRA, antitrust law, and current legal issues such as Credit Card Surcharge issues, Social Media, Cybersecurity and Ethics for the Trade Credit Grantor and current proposed legislation that may impact trade credit grantors.
Taxmann's Guide to SARFAESI Act 2002 & Recovery of Debts and Bankruptcy Act 1993Taxmann
This document provides an overview of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It discusses the background and objectives of the Act, key features such as enforcement of security, securitization, and asset reconstruction. It also examines related topics such as the constitutional validity of the Act, applicability to different entities, and interactions with other laws like the Recovery of Debts and Bankruptcy Act, 1993 and Insolvency and Bankruptcy Code, 2016. The document outlines the procedures for enforcement of security, sale of secured assets, appeals and penalties under the SARFAESI Act.
The debtor, Cordillera Golf Club, LLC, filed a motion seeking authorization to retain and pay certain professionals utilized in the ordinary course of business without requiring each professional to file a formal application for employment. The motion proposed procedures for retaining ordinary course professionals, including requiring the professionals to file declarations of disinterestedness, limiting monthly payments to $25,000 per professional absent a fee application, and requiring the debtor to file quarterly reports on payments to the professionals. The debtor argued this relief was necessary to avoid disruption to its business operations and pending litigation matters.
The debtor, Cordillera Golf Club, LLC, filed a motion seeking authorization to retain and pay certain professionals utilized in the ordinary course of business without requiring each professional to file a formal application for employment. The motion proposed procedures for retaining ordinary course professionals, including requiring the professionals to file declarations of disinterestedness, limiting monthly payments to $25,000 per professional absent a fee application, and requiring the debtor to file quarterly reports on payments to the professionals. The debtor argued this relief was necessary to avoid disruption to its business operations and pending litigation matters.
This document is a motion filed in bankruptcy court by Flat Out Crazy, LLC and affiliated debtors seeking authorization to pay prepetition employee wages, salaries, benefits and related obligations. The debtors operate Asian restaurants and stir fry restaurants employing around 1,185 employees. The motion argues that paying prepetition employee obligations is essential to maintaining employee morale and productivity during the bankruptcy process to prevent disruption of business operations and pursue a successful reorganization.
The document summarizes common types of "first day motions" that are often filed when a company declares bankruptcy. These motions generally request interim relief from the court to allow the company to continue operating while in bankruptcy. Some of the most common motions discussed include requests to pay employee wages, use cash collateral, maintain existing bank accounts and insurance programs, pay taxes and customer programs, and obtain post-petition financing. The document also discusses administrative motions related to retaining professionals, case management procedures, and extending credit to debtors.
The Intersection of Bankruptcy and... Labor/Employment Law (Series: Bankruptc...Financial Poise
Even before a company files for bankruptcy protection, multiple employment and labor issues can arise. This webinar addresses the ramifications of the failure of a debtor to comply with the Worker Adjustment and Retraining Notification Act (WARN), which requires employers to provide written notice in advance of covered plant closings and mass layoffs under certain conditions and may subject the debtor to liability. It also examines employee wage and claim issues that are often triggered by the filing for bankruptcy protection, as well as the special treatment provided by the Bankruptcy Code for collective bargaining agreements and retiree health care benefits, which makes modification or rejection of such agreements more difficult during the bankruptcy proceeding.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/bankruptcy-and-labor-employment-law-2020/
The Intersection of Bankruptcy and… Labor/Employment LawFinancial Poise
Even before a company files for bankruptcy protection, multiple employment and labor issues can arise. This webinar addresses the ramifications of the failure of a debtor to comply with the Worker Adjustment and Retraining Notification Act (WARN), which requires employers to provide written notice in advance of covered plant closings and mass layoffs under certain conditions and may subject the debtor to liability. It also examines employee wage and claim issues that are often triggered by the filing for bankruptcy protection, as well as the special treatment provided by the Bankruptcy Code for collective bargaining agreements and retiree health care benefits, which makes modification or rejection of such agreements more difficult during the bankruptcy proceeding.
Part of the webinar series: Bankruptcy Intersections 2022
See more at https://www.financialpoise.com/webinars/
This document is an affidavit from Mark Weinsten in support of LodgeNet Interactive Corporation filing for Chapter 11 bankruptcy and the relief sought in various first day motions. It provides background on LodgeNet's financial difficulties and proposed restructuring, including a $60 million investment from Colony Capital in exchange for 100% ownership of reorganized LodgeNet under a prepackaged Chapter 11 plan that has already received creditor support. The affidavit also summarizes various motions seeking court approval of procedures to allow LodgeNet to continue operating in bankruptcy with minimal disruption.
This document is an application filed by Cordillera Golf Club, LLC (the "Debtor") in the United States Bankruptcy Court for the District of Delaware seeking approval to retain the law firm Foley & Lardner LLP ("Foley") as its general bankruptcy counsel. The application provides background on the Debtor's Chapter 11 bankruptcy filing and requests that the retention of Foley be approved nunc pro tunc to the petition date to represent the Debtor in the bankruptcy case. It describes Foley's qualifications and experience in bankruptcy matters and outlines the services Foley will provide and its proposed compensation structure including hourly billing rates.
This document is an application filed by Cordillera Golf Club, LLC (the "Debtor") requesting that the Court approve the retention of Foley & Lardner LLP ("Foley") as the Debtor's general bankruptcy counsel. The application provides background on the Debtor's Chapter 11 bankruptcy filing and describes Foley's qualifications to serve as counsel. It also discloses Foley's prior representation of the Debtor as well as certain affiliates, and requests authorization for Foley to continue representing those parties in unrelated matters, provided there is no conflict with the bankruptcy case. Notice of the application will be provided to key parties, and the Debtor requests approval of Foley's retention nunc pro tunc to the
The debtor, Cordillera Golf Club, LLC, filed a motion seeking approval of procedures for interim compensation and reimbursement of expenses for professionals retained in the chapter 11 case. The motion requests that professionals be allowed to submit monthly fee applications for payment of 80% of fees and 100% of expenses, with interim fee applications submitted every three months. The procedures are consistent with those approved in other large chapter 11 cases and will help streamline the professional compensation process.
The debtor, Cordillera Golf Club, LLC, filed a motion seeking approval of procedures for interim compensation and reimbursement of expenses for professionals retained in the chapter 11 case. The motion requests that professionals be allowed to submit monthly fee applications for payment of 80% of fees and 100% of expenses, with interim fee applications submitted every three months. The procedures are intended to streamline the payment process in this large chapter 11 case.
This document is a motion filed in United States Bankruptcy Court requesting an order to shorten the notice period for a hearing on the appointment of a trustee. The motion was filed by petitioning creditors against Allied Systems Holdings, Inc. and Allied Systems, Ltd. (L.P.), who were recently subject to involuntary bankruptcy petitions. The motion argues that exigent circumstances exist due to conflicts of interest and mismanagement by the company's controlling shareholder, Yucaipa, that threaten creditor interests. As such, an expedited hearing is requested to consider appointing a trustee to assume control of the debtors.
The document discusses key points of intersection between bankruptcy law and estate administration. It defines insolvency under relevant acts and notes that the Bankruptcy and Insolvency Act takes precedence. The bankruptcy process is outlined, including potential liability of personal representatives. Priorities of creditors are provided for both the Bankruptcy and Insolvency Act and the Estate Administration Act, with secured, preferred, and unsecured creditors addressed.
This article discusses issues facing individual debtors seeking relief under Chapter 11 bankruptcy. It argues that Congress should amend the Bankruptcy Code to make Chapter 11 work better for individual debtors while still protecting creditors. Specifically, it recommends that Congress: (1) abrogate the absolute priority rule for individual debtors so they can retain assets needed for a fresh start, and (2) allow an unsecured creditor's rejecting vote on a repayment plan to trigger the requirement that the debtor pay disposable income to unsecured creditors. These changes would help individuals reorganize debts under Chapter 11 without losing essential assets, while ensuring fair treatment of creditors.
This document analyzes the legal mechanisms that allow creditors to potentially receive a "double-dip" recovery in bankruptcy through asserting claims against both a guarantor entity and primary obligor entity for the same debt. It describes how a creditor can receive an allowed claim for the full amount owed against each debtor. It also explains how bankruptcy law treats intercompany claims and claims for reimbursement in a way that prevents offsetting of recoveries, allowing the creditor to potentially recover more than the amount owed from multiple entities. However, it notes there are risks like substantive consolidation that could eliminate this result.
The document summarizes recent changes to Tennessee's workers' compensation laws and regulations. It discusses (1) clarification that signed medical releases from before July 2009 remain valid, (2) a prohibition on reconsidering capped claims if ownership changes but employment terms do not, and (3) expanded communication allowed between parties to a claim if a proper release is obtained. It also summarizes other policy changes and forms.
The debtor, Cordillera Golf Club, LLC, filed an application seeking approval to retain GA Keen Realty Advisors, LLC as its real estate advisor nunc pro tunc to the petition date. GA Keen Realty will assist the debtor by raising debt or equity capital to fund a reorganization plan, refinance properties, or sell properties. GA Keen Realty will receive transaction fees ranging from 2-6% of proceeds depending on the type of transaction closed. The application seeks to waive certain fee application requirements and employ GA Keen Realty under an incentive-based fee structure customary for its commercial real estate advisory services.
This document is an application filed in the United States Bankruptcy Court for the District of Delaware by Cordillera Golf Club, LLC seeking approval to retain GA Keen Realty Advisors, LLC as its real estate advisor. Cordillera Golf Club filed for Chapter 11 bankruptcy protection and requires assistance assessing the highest and best use of its owned real property and obtaining capital for its business. The application requests that GA Keen Realty be approved as Cordillera's real estate advisor nunc pro tunc to the petition date under the terms of a retention agreement between the two parties. GA Keen Realty has experience advising other debtors in bankruptcy cases and working with Cordillera since prior to the bankruptcy filing.
This document provides an overview and analysis of the Supreme Court's 2011 decision in CIGNA Corp. v. Amara and its implications. It summarizes the key holdings of Amara, including that SPDs are not plan documents but equitable remedies like reformation, estoppel, and surcharge are available under ERISA 502(a)(3). It then discusses several post-Amara appellate cases that have addressed issues like reliance, harm, and the scope of available remedies. The document analyzes open legal questions around these issues and cites relevant state trust law principles discussed in Amara.
The document discusses the history and development of a new technology called blockchain. Blockchain was originally developed for the digital currency Bitcoin as a way to record transactions in a secure, decentralized manner without the need for a central authority. It has since grown in popularity and found applications beyond digital currencies, with many now exploring how the technology could be used to support areas like banking, supply chain management, and digital identity verification.
Flat Out Crazy, LLC filed a voluntary Chapter 11 bankruptcy petition on January 25, 2013 in the Southern District of New York. The petition provides basic information about the debtor, including its legal name and address, tax identification number, and the chapter of bankruptcy under which relief is sought. It also discloses that on the same date, three affiliated entities including the debtor filed Chapter 11 petitions in the same court, and the debtors intend to request joint administration of the cases.
LodgeNet Interactive Corporation, a corporation based in Sioux Falls, South Dakota, filed for Chapter 11 bankruptcy protection on January 27, 2013. LodgeNet provides interactive television services and listed its estimated assets as between $100,001 and $500,000 and estimated liabilities as between $100,001 and $500,000. The petition included basic information about the company and the bankruptcy filing.
This document is an amended plan of reorganization filed in the United States Bankruptcy Court for LodgeNet Interactive Corporation and its affiliates, who are debtors in Chapter 11 bankruptcy cases. The plan proposes reorganizing the debtors' capital structure and financial obligations under Chapter 11 of the Bankruptcy Code. It defines key terms used in the plan and establishes classes of claims and interests to determine how prepetition obligations will be treated under the plan.
This document is a disclosure statement regarding LodgeNet Interactive Corporation's plan of reorganization under Chapter 11 bankruptcy. Key points:
1) LodgeNet intends to file for Chapter 11 bankruptcy in order to implement a restructuring plan agreed upon with major lenders and investor Colony Capital.
2) The plan involves Colony Capital investing $60 million for new ownership of LodgeNet, and lenders converting debt into exit financing loans and equity.
3) If approved, the plan aims to pay all creditors in full and allow LodgeNet to continue operations with new ownership and reduced debt. A hearing will be held to seek final approval of the plan from the bankruptcy court.
This document is an affidavit filed in support of Flat Out Crazy LLC and its affiliated debtors filing for Chapter 11 bankruptcy. It provides background information on the debtors' business operations as two Asian-inspired restaurant chains with 26 locations. It describes the debtors' capital structure including senior secured debt of $5.9 million and equipment financing. The debtors have experienced losses in recent years due to economic conditions and unsuccessful expansion, putting strain on their cash flow and relationships with creditors.
This document is a motion filed with the United States Bankruptcy Court for the Southern District of New York by Atari, Inc. and its affiliates seeking authorization to pay certain prepetition claims of critical vendors, including game developers and one game licensor, that are essential to the debtors' ongoing operations. Specifically, the debtors request authority to pay $233,300 in claims owed to four foreign or small game development companies for work on games that are major revenue sources, as well as to maintain an important licensing agreement for the RollerCoaster Tycoon franchise. The motion argues that nonpayment of these claims could cause irreparable harm to the debtors' business operations and value.
Atari, Inc. filed for Chapter 11 bankruptcy protection in New York. Atari is a video game company incorporated in Delaware with its principal place of business in New York City. Atari estimates that it has assets of $50-100 million and liabilities of $100-500 million. Atari intends to reorganize its business and debts under Chapter 11 bankruptcy.
This document is a voluntary bankruptcy petition filed by Lyon Workspace Products, L.L.C. in the Northern District of Illinois. The petition provides basic information about the debtor such as addresses, tax identification numbers, the nature of debts as primarily business debts, and estimated assets and liabilities. It also lists no prior bankruptcy cases filed by the debtor or its affiliates in the last 8 years.
This document is a bench ruling from a bankruptcy judge on a motion to compel arbitration related to a debtor's cash collateral motion. The judge analyzes applicable case law and determines that:
1) Whether a debtor has authority to use cash collateral is fundamentally a bankruptcy issue, not a contractual dispute.
2) The parties did not agree to arbitrate issues relating to a debtor's rights under the Bankruptcy Code, as those rights were created by Congress and differ from pre-bankruptcy contractual rights.
3) Therefore, the motion to compel arbitration of the debtor's cash collateral motion is denied, as use of cash collateral is a core bankruptcy issue not subject to the arbitration agreement.
The document lists the potential witnesses and exhibits that the debtor intends to present at a hearing scheduled for July 16, 2012 regarding a motion to transfer venue of the bankruptcy case. The two potential witnesses listed are Daniel L. Fitchett, Jr. and Harold Bordwin. The document then lists 17 potential exhibits, which include declarations, documents filed with the court, notices, orders from other court cases, and other documents relevant to the venue transfer motion.
The Official Committee of Unsecured Creditors appointed in the chapter 11 bankruptcy case of Cordillera Golf Club, LLC filed an application to retain the law firm of Saul Ewing LLP as its co-counsel. Saul Ewing would represent the Committee's interests regarding all matters related to the Debtor's chapter 11 case, along with the Committee's lead counsel Munsch Hardt Kopf & Harr, P.C. The application provides background on the bankruptcy case, the Committee, and Saul Ewing's qualifications. It also discloses Saul Ewing's hourly billing rates and reimbursement policies.
This document is a notice filed in the United States Bankruptcy Court for the District of Delaware regarding a hearing on motions seeking to transfer venue of a bankruptcy case. It lists potential witnesses and exhibits that may be presented by the Official Committee of Unsecured Creditors at the hearing, including the CEO of the debtor, various objectors, proposed lenders, and exhibits such as pleadings and documents filed in the bankruptcy case. The notice reserves the right to supplement the witness and exhibit lists before the hearing.
The Official Committee of Unsecured Creditors (the "Committee") in the chapter 11 bankruptcy case of Cordillera Golf Club, LLC (the "Debtor") filed an application seeking approval to retain the law firm Munsch Hardt Kopf & Harr, PC ("Munsch Hardt") as counsel. The Committee selected Munsch Hardt due to its experience in bankruptcy cases and matters relevant to the case such as real estate and hospitality. Munsch Hardt will represent the Committee and provide legal advice regarding the Debtor and case administration. The application provides notice of the request for approval of Munsch Hardt's employment and discloses certain prior relationships between Munsch Hardt and potential
The Official Committee of Unsecured Creditors appointed in the Cordillera Golf Club bankruptcy case filed an application to retain Saul Ewing LLP as its co-counsel. Saul Ewing would serve alongside the Committee's lead counsel, Munsch Hardt Kopf & Harr, P.C. The application provides background on the bankruptcy filing and Committee formation. It also describes the services Saul Ewing would provide, including advising the Committee, investigating claims and transactions, and representing the Committee's interests in the case. The application attaches Saul Ewing's billing rates and a declaration by Mark Minuti attesting that the firm does not hold interests adverse to the estate.
The Official Committee of Unsecured Creditors for Cordillera Golf Club, LLC filed an application to employ the law firm Munsch Hardt Kopf & Harr, PC as counsel. This notice states that the application is being withdrawn. It was signed by Mark Minuti of Saul Ewing LLP, proposed counsel for the Official Committee of Unsecured Creditors.
The Official Committee of Unsecured Creditors filed an application seeking approval to retain Munsch Hardt Kopf & Harr, PC as its legal counsel. Munsch Hardt has extensive experience representing committees and debtors in bankruptcy cases. If approved, Munsch Hardt would provide legal services to assist the Committee in exercising its duties, including investigating the debtor's financial affairs and negotiating a plan of reorganization. Munsch Hardt's hourly rates for attorneys working on the case range from $200 to $685 per hour.
The Official Committee of Unsecured Creditors appointed in Cordillera Golf Club, LLC's Chapter 11 bankruptcy case filed an application seeking court approval to retain Munsch Hardt Kopf & Harr, PC as its legal counsel. The Committee selected Munsch Hardt due to the firm's experience in bankruptcy matters and issues relevant to the case. The application requests approval of Munsch Hardt's hourly rates and reimbursement of expenses, and asserts that the firm is qualified and disinterested to represent the Committee. Notice of the application will be provided to parties in the bankruptcy case. A hearing on the application is scheduled for July 27, 2012.
The Official Committee of Unsecured Creditors for Cordillera Golf Club, LLC filed an application to employ the law firm Munsch Hardt Kopf & Harr, PC as counsel. This notice states that the application is being withdrawn. It was signed by Mark Minuti of Saul Ewing LLP, proposed counsel for the Official Committee of Unsecured Creditors.
The Official Committee of Unsecured Creditors appointed in Cordillera Golf Club, LLC's Chapter 11 bankruptcy case filed an application seeking approval to retain Munsch Hardt Kopf & Harr, PC as its counsel. The Committee selected Munsch Hardt due to the firm's experience in bankruptcy matters and hospitality/real estate issues relevant to the case. The application requests approval of Munsch Hardt's hourly rates and reimbursement of expenses, and asserts that the firm is disinterested and does not hold interests adverse to the Committee. Notice of the application will be provided to parties in interest. A hearing on the application is scheduled for July 27, 2012.
1. Case 13-02100 Doc 11 Filed 01/19/13 Entered 01/19/13 19:27:48 Desc Main 1/19/2013
Docket #0011 Date Filed:
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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
In re
Chapter 11
LYON WORKSPACE PRODUCTS, L.L.C., et
al.1, Case No. 13-2100
Debtor. Honorable Janet S. Baer
DEBTORS’ MOTION FOR ORDER PURSUANT TO 11 U.S.C. §§ 507 AND 363 (A)
AUTHORIZING, BUT NOT DIRECTING, PAYMENT OF PREPETITION PRIORITY
WAGES, SALARIES AND EMPLOYEE BENEFITS AND CONTINUATION OF
EMPLOYEE BENEFIT PLANS AND PROGRAMS POSTPETITION, (B)
AUTHORIZING, BUT NOT DIRECTING, DEDUCTIONS FROM EMPLOYEES’
PAYCHECKS, AND (C) DIRECTING ALL BANKS TO HONOR PREPETITION
CHECKS FOR PAYMENT OF PREPETITION EMPLOYEE OBLIGATIONS
Lyon Workspace Products, L.L.C., et al. (collectively, the “Debtors”) submit this motion,
pursuant to sections 105, 363(b), 507(a)(4) and 507(a)(5) of the Bankruptcy Code, for entry of an
order: (a) authorizing, but not directing, the Debtors to pay or otherwise honor the Debtors’
employee-related prepetition priority obligations to, or for the benefit of, employees, and to
continue postpetition the employee benefit plans and programs in effect immediately prior to the
filing of this case; (b) authorizing, but not directing, the Debtors to make deductions from
employees’ paychecks; (c) directing all banks to honor prepetition checks for payment of the
Debtors’ prepetition employee obligations; and (d) granting related relief. In support of this
Motion, the Debtors respectfully represent as follows:
I. JURISDICTION
1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334. This is
a core proceeding pursuant to 28 U.S.C. § 157(b)(2). Venue of these cases and this Motion in
this District is proper pursuant to 28 U.S.C. §§ 1408 and 1409. The statutory predicates for the
1
The other Debtors in these jointly administered chapter 11 cases are Pride Metals L.L.C., Sycamore
Systems, L.L.C., Paris Metal Products, L.L.C., Durand Products, L.L.C., L&D Group, Inc., Miller Global Solutions,
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1302100130119000000000010
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2. Case 13-02100 Doc 11 Filed 01/19/13 Entered 01/19/13 19:27:48 Desc Main
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relief requested herein are Bankruptcy Code sections 105, 363(b), 507(a)(4) and 507(a)(5).
II. BACKGROUND
2. On January 19, 2013, each of the Debtors filed a voluntary petition for relief
under chapter 11 of the Bankruptcy Code. The Debtors are operating their businesses and
managing their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the
Bankruptcy Code. No request for the appointment of a trustee or examiner has been made in the
Chapter 11 Cases and no official committee has been appointed.
3. The factual background relating to the Debtors’ commencement of these Chapter
11 Cases is set forth in detail in the Declaration of Robert Wanat in Support of Debtors’ Chapter
11 Petitions and First Day Motions (the “Wanat Declaration”) filed on the Petition Date and
incorporated herein by reference.
III. RELIEF REQUESTED
4. By this Motion, the Debtors request that the Court enter an order under sections
507(a)(4) and (a)(5) and 363(b)(1) of the Bankruptcy Code authorizing the Debtors to (a) pay or
otherwise honor all employee-related prepetition priority obligations of the Debtors to, or for the
benefit of, current employees (the “Employees”), (b) make deductions from Employees’
paychecks, and (c) continue postpetition the Debtors’ employee benefit plans and programs as
described below.
5. The employee-related obligations (the “Prepetition Employee Obligations”)
include, without limitation:
(a) unpaid prepetition wages, salaries and commissions, up to the
statutory maximum of $11,725 per employee, including holiday,
L.L.C., and Lyon Workspace Products, Inc.
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vacation and sick leave pay earned prior to the Petition Date;
(b) reimbursable business expenses incurred before the Petition Date;
and
(c) employee health and welfare benefit claims arising before the
Petition Date (including, without limitation, (i) medical and dental
claims under the Debtors’ self-funded health care plan and
COBRA, (ii) long-term disability, accidental death and
dismemberment and life insurance, (iii) supplemental health
insurance, (iv) union dues for union Employees, (v) uniform
rentals for uniformed Employees, and (iv) workers’ compensation
claims arising before the Petition Date (collectively, the benefits in
this subsection (c) shall be referred to as the “Employee
Benefits”)).
6. The Debtors also seek an order directing all banks and financial institutions to
honor prepetition checks for payment of the Prepetition Employee Obligations.
IV. AUTHORITY FOR REQUESTED RELIEF
7. In order to minimize the personal hardship that the Employees will suffer if
prepetition Employee-related obligations are not paid when due or as expected, and to maintain
morale and an essential workforce during this critical time, the Debtors respectfully submit that it
is in the best interests of their estate, creditors and parties-in-interest for this Court to authorize
payment of the Prepetition Employee Obligations, to allow the Debtors to make deductions from
the Employees’ paychecks and to continue the Employee Benefits in the ordinary course of
business.
A. Unpaid Compensation
8. As of the Petition Date, the Debtors’ workforce consisted of approximately 400
full-time employees. Approximately 53% of the Debtors’ workforce consists of salaried
Employees, and the remaining 47% of the workforce is paid on an hourly basis. Of the salaried
employees, approximately 55% are eligible for overtime pay.
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9. The Debtors have two payrolls: one weekly and the other bi-weekly. The weekly
payroll varies depending upon plant volume, but is approximately $200,000. The bi-weekly
payroll is approximately $295,000 per pay period. Generally, hourly Employees are paid weekly
and salaried Employees are paid bi-weekly. Both salaried and hourly Employees are paid
approximately one to two weeks in arrears.
10. Eight percent of the Debtors’ Employees are union members whose employment
is governed by a collective bargaining agreement (“CBA”) with Local Union No. 1636 of the
United Steelworkers of America, A.F.L.-C.I.O.
11. Through this Motion, the Debtors request authority, but not direction, to honor, in
the ordinary course of business, all of the obligations to union Employees in accordance with the
terms and conditions of the CBA, including, but not limited to, the relevant Unpaid Wages and
Salaries.
12. Though the Debtors are current on their payroll as of the Petition Date, the
Debtors owe their Employees compensation in the form of accrued but unpaid wages and salaries
(the “Unpaid Wages and Salaries”) in the approximate aggregate amount of $130,000.
13. The Debtors also use temporary workers during busy periods. These workers are
not Employees and are not paid by the Debtor. Rather, the Debtors pay the agencies that directly
employ these workers. As of the Petition Date, the Debtors used an average of 25 temp workers
per day and owe nine agencies at total of approximately $500,000 for the services of their
temporary workers.
14. Additionally, approximately 50 Employees in the Debtors’ sales force are entitled
to commissions based on a percentage of sales made each quarter (the “Unpaid Commissions,”
and together with the Unpaid Wages and Salaries, the “Unpaid Compensation”). As of the
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Petition Date, the Debtors estimate that the aggregate amount owed in the form of accrued but
Unpaid Commissions is approximately $200,000. The Debtors seek authority to pay such
Unpaid Compensation as it becomes due and owing in the ordinary course of business. Only one
of the Employees entitled to an Unpaid Commission is owed more than the statutory maximum.
In that case, the Debtors seek only to pay the statutory maximum of $11,725 (less any other
accrued priority compensation).
B. Paid Time Off
15. During the course of each year, certain Employees accrue vacation, sick leave and
holiday pay that may be exercised in the ordinary course of the Debtors’ business (the “Paid
Time Off”). Accrual of vacation time varies depending on the location of the Employee, his or
her union membership, whether that employee is salaried or hourly and whether the employee is
in an overtime exempt role. Vacation time of four weeks is the maximum accrual for the most
senior non-union Employees and does not carry over from year to year, except for those
employees located in California. As of the Petition Date, aggregate accrued and unused vacation
time amounted to a total liability to the Debtors of approximately $300,000.
16. The Debtors also provide sick leave to full-time salaried Employees. The Debtors
request authority to continue to accrue such vacation, sick leave and other leave time in the
ordinary course of their business and to allow Employees to utilize such accrued time under the
customary and/or contractual terms and conditions of such Employees’ employment.
C. Reimbursement Obligations
17. It is the Debtors’ policy to reimburse Employees for certain expenses within the
scope of their employment, including expenses for business-related travel (the “Reimbursement
Obligations”). The Debtors average $24,000 per month in expense reimbursements, and
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estimates that, as of the Petition Date, approximately half that total was owed to Employees on
account of the Reimbursement Obligations. The Debtors request the authority to pay such
accrued but unpaid prepetition Reimbursement Obligations.
D. Remitting and/or Paying Appropriate Deductions and Withholdings
18. During each applicable pay period, the Debtors routinely deduct certain amounts
from paychecks, including, without limitation, (a) garnishments, child support and similar
deductions, and (b) other pre-tax and after-tax deductions payable pursuant to certain of the
Employee Benefits discussed herein (such as an employee’s share of health care benefits,
insurance premiums, pension payments, 401(k) contributions and other miscellaneous
deductions) (collectively, the “Deductions”) and forwards those amounts to various third party
recipients. On average, the Debtors historically deducted approximately $12,000 from weekly
payroll and $28,000 from bi-weekly payroll from the Employees’ paychecks per applicable
payroll period. However, due to the commencement of this chapter 11 case, these funds were
deducted from Employees’ earnings, but may not have been forwarded to the appropriate third
party recipients prior to the Petition Date. Accordingly, the Debtors seek for it or their agent to
continue to forward these prepetition Deductions to the applicable third party recipients on a
postpetition basis, in the ordinary course of business, as routinely done prior to the Petition Date.
19. Further, the Debtors are required by law to withhold from an Employee’s wages
amounts related to federal, state and local income taxes and social security taxes (collectively,
the “Withheld Amounts”) for remittance to the appropriate federal, state or local taxing
authority. The Debtors must then match from their own funds for social security and pay, based
on a percentage of gross payroll, additional amounts for state and federal unemployment
insurance (the “Employer Payroll Taxes,” and together with the Withheld Amounts, the “Payroll
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Taxes”). The Debtors’ Payroll Taxes, including both the employee and employer portion, for the
last three quarters of 2012 were approximately $4,300,000. On average, the Debtors withhold
approximately $55,000 from weekly payroll and $80,000 from bi-weekly payroll in the
aggregate from the Employees’ paychecks each payroll period. Before the Petition Date, the
Debtors withheld the appropriate amounts from Employees’ earnings for the Payroll Taxes, but
such funds may not have been forwarded to the appropriate taxing authorities prior to the
Petition Date. As a result, the Debtors seek authority, but not direction, for it or their agent to
continue to honor and process the prepetition obligations with respect to Payroll Taxes on a
postpetition basis, in the ordinary course of business, as routinely done prior to the Petition Date.
E. Employee Benefits
20. The Debtors also offer Employees many standard benefits under their Employee
Benefit programs. Specifically, certain of the Debtors’ Employees are offered a choice of,
among other things, medical and dental plans, COBRA, long-term disability, accidental death
and dismemberment insurance, basic life insurance and supplemental health insurance.
21. The Debtors offer medical and dental coverage to Employees and their families.
The insurance plan is self-funded and independently administered by Blue Cross/Blue Shield.
The total monthly contribution from Employees for insurance is approximately $45,000. The
Debtors are responsible for paying claims and administrative expenses to Blue Cross/ Blue
Shield from the Employees’ contribution and from their own funds. The monthly payment
varies depending on actual claims activity, but the average payment is approximately $300,000
per month, inclusive of the Employees’ contribution. As of the Petition Date, the Debtors
believe that claims for December and January in the approximate total amount of $400,000 will
be incurred but will not yet be due and owing.
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22. Approximately 350 Employees participate in one or more of: (a) long-term
disability through Met Life or Assurant, (b) life insurance through Met Life, (c) short term
disability, and/or (d) a uniform rental program. The annual cost to the Debtors is approximately
$175,000. As of the Petition Date, the Debtors expect that the aggregate amount of these
benefits outstanding will be $25,000.
23. The Debtors provide their Employees with a 401(k) plan. Under the CBA, the
Debtors must match contributions up to 6% of a union employee’s salary. The Debtors monthly
contributions average $4500. As of the Petition Date, the Debtors expect that approximately
$2,500 in required 401(k) contributions will be outstanding.
24. The Debtors request authority to continue to maintain the Employee Benefits in
their sole discretion and to pay any prepetition amounts related thereto.
F. Workers Compensation
25. Because their sales force is national in scope, the Debtors are required to provide
workers’ compensation insurance 41 states. The Debtors insures workers’ compensation with a
large deductible program through Sentry Insurance, or if required by state law, through a
retrospective rating policy through Sentry Insurance. The premiums for the insurance are
approximately $385,000 per year, plus claims paid.
26. It is critical that the Debtors be permitted to continue their workers’ compensation
program and to pay any reconciled balances and unpaid premiums because alternative
arrangements for workers’ compensation coverage would most certainly be more costly and the
failure to provide coverage may subject the Debtors and/or their officers to severe penalties.
Accordingly, the Debtors seeks authority to continue to pay premiums related to workers’
compensation, to pay any unpaid premiums that became due prepetition and to continue the
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workers’ compensation program in the ordinary course of business in their sole discretion.
G. Summary of Requests
27. In sum, pursuant to this Motion, the Debtors seek to pay the Prepetition Employee
Obligations and to continue the Debtors’ Employee Benefits in effect immediately prior to the
filing of this case. If the Debtors fail to pay or honor the Employees’ prepetition compensation,
reimbursement procedures and employee benefits, the Employees will suffer extreme personal
hardship and in many cases will be unable to pay their basic living expenses. This clearly would
destroy Employee morale and result in unmanageable Employee turnover during the critical
early stages of the Debtors’ chapter 11 case, which would negatively impact the Debtors’ ability
to sell their assets in a sale pursuant to § 363 of the Bankruptcy Code. The Debtors submit that
any significant deterioration in morale at this time will substantially and adversely impact the
Debtors and their ability to sell their assets, thereby resulting in immediate and irreparable harm
to the Debtors and their estates. In addition, the failure to pay workers’ compensation claims
may result in Employee attempts to compel payment through litigation or similar means, thereby
jeopardizing the Debtors’ ability to conduct business.
28. To retain Employees and maintain their morale through the asset sale, the Debtors
seek authorization, but not direction, to satisfy the Prepetition Employee Obligations and
continue to provide postpetition the Employee Benefits and maintain accruals of those benefits in
the ordinary course of business. The Debtors further submit that the amounts to be paid to the
Employees pursuant to this Motion are reasonable compared with the importance and necessity
of preserving Employee loyalty and morale and with the difficulties and losses the Debtors likely
will suffer if those amounts are not paid.
29. Accordingly, the Debtors seek authorization to pay the Prepetition Employee
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Obligations (or to maintain accrued levels of benefits and continue such accrual where payment
is not yet due) all in accordance with the policies, plans and programs in place prior to the
Petition Date.
H. Banks to Honor Prepetition Checks for Prepetition Employee Obligations
30. In addition, the Debtors request that all applicable banks and other financial
institutions be authorized and directed to receive, process, honor and pay all checks presented for
payment and to honor all fund transfer requests made by the Debtors related to the Prepetition
Employee Obligations, whether such checks were presented or fund transfer requests were
submitted prior to or after the Petition Date. The Debtors represent that checks other than those
for the Prepetition Employee Obligations will not be honored inadvertently. Moreover, the
Debtors represent that they have sufficient cash reserves, together with anticipated access to
debtor-in-possession financing, to promptly pay all of the Prepetition Employee Obligations, to
the extent described herein, on an ongoing basis and in the ordinary course of their business.
V. APPLICABLE AUTHORITY
31. Sections 507(a)(4) and (a)(5) of the Bankruptcy Code give priority up to $11,725
per individual for prepetition claims for wages, salaries, vacation, sick leave and contributions to
employee benefit plans. The Debtors believe that the Prepetition Employee Obligations that they
seek to pay are entitled to priority under sections 507(a)(4) and (a)(5) of the Bankruptcy Code,
and, as such, will be paid in full as a condition to confirmation of a plan of reorganization. See
11 U.S.C. § 1129(a)(9). Therefore, payment of the Prepetition Employee Obligations in the
ordinary course of business merely accelerates the timing of payment of obligations that will
otherwise be paid in any event, thereby not disrupting the Bankruptcy Code’s priority scheme.
32. This Court may also authorize the Debtors’ proposed payment of the Prepetition
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Employee Obligations under section 363(b)(1) of the Bankruptcy Code. Section 363(b)(1)
provides that a bankruptcy court, after notice and a hearing, may authorize a debtor to “use, sell,
or lease, other than in the ordinary course of business, property of the estate.” See 11 U.S.C. §
363(b)(1). Although stated various ways, courts generally hold that a debtor’s decision to enter
into a transaction outside of the ordinary course of business is governed by the business
judgment standard. 3 COLLIER ON BANKRUPTCY ¶ 363.02[4] (16th ed. 2012); See e.g. In re
Zeigler, 320 B.R. 362, 381 (Bankr. N.D. Ill. 2005); see also In re Schipper, 933 F.2d 513, 515
(7th Cir. 1991) (requiring “articulated business justification” for sale under § 363(b)(1)); In re
U.S. Airways Grp., Inc., 287 B.R. 643, 645 (Bankr. E.D. Va. 2002).
33. When applying the “business judgment” rule, courts show great deference to a
debtor’s decision making. See, e.g., In re Castre, 312 B.R. 426, 430 (Bankr. D. Colo. 2004); In
re Murphy, 288 B.R. 1, 5 (D. Me. 2002); In re Bakalis, 220 B.R. 525, 532 (Bankr. E.D. NY
1998); In re First Wellington Canyon Assoc., No. 89 C 593, 1989 WL 165028, at *1 (N.D. Ill
Dec. 28, 1989) (discussing business judgment rule in rejection of executory contracts); Summit
Land co. v. Allen (In re Summit Land Co.), 13 B.R. 310, 315 (Bankr. D. Utah 1981). The
Debtors submit that, because the Prepetition Employee Obligations are entitled to priority status,
and because the retention of the Debtors’ workforce is vital to the Debtors’ ongoing operations
and their prospects for effectuating a successful sale, it is in the best interest of the Debtors’
estate to pay such claims in the ordinary course of business during this chapter 11 case.
34. The Debtors believe that there is a significant risk that Employees whose
Prepetition Employee Obligations are not honored in the ordinary course of business will
terminate their employment relationships with the Debtors. The continued service and
dedication of the Employees is critical to the Debtors and their prospects for consummating a
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successful sale. In order to retain their Employees, maintain morale under difficult working
conditions and avoid jeopardizing the basic operation of their business pending the sale of their
assets, the Debtors must have authority to pay or otherwise satisfy all Prepetition Employee
Obligations.
35. As the Wanat Declaration demonstrates, Employees leaving the Debtors’ employ
at this critical juncture will seriously undermine the sale process. Indeed, the vast majority of the
Employees are effectively irreplaceable during the expedited sale process because the Debtors
will be hard-pressed to hire replacements given the relatively uncertain situation. Moreover, the
amounts to be paid pursuant to this Motion are reasonable compared with the importance and
necessity of the Employees.
36. The relief requested in this Motion is appropriate—and indeed critical—and
should be authorized under sections 507(a)(4), 507(a)(5) and 363(b) of the Bankruptcy Code.
Courts routinely recognize that payment of employee obligations is essential to a Debtors’
reorganization efforts and authorize full payment of prepetition wage, salary, commission,
expense, severance and benefit claims. See, e.g., In re UNR Industries, 143 B.R. 506, 519
(Bankr. N.D. Ill. 1992) rev’d on other grounds; In re Enesco Group, Inc., Case No. 07-00565
(Bankr. N.D. Ill. Jan. 12, 2007); In re McLeodUSA Inc., Case No. 05-63230 (Bankr. N.D. Ill.
Oct. 31, 2005); In re Comdisco, Inc., Case No. 01-24795 (Bankr. N.D. Ill. July 16, 2001); In re
Outboard Marine Corporation, Case No. 00-37405 (EIK) (Bankr. N.D. Ill. Dec. 22, 2000); In re
SourceOne Wireless, Inc., Case No. 99-13841 (Bankr. N.D. Ill Feb. 1, 2000); In re Envirodyne
Industries, Inc., Case No. 93-00319 (Bankr. N.D. Ill. January 1, 1993).
37. Based upon the foregoing, the Debtors request that this Court enter an order
authorizing, but not directing, the Debtors to pay the Prepetition Employee Obligations as
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described herein and to continue the Employee Benefits plans postpetition in the ordinary course
of business.
38. Nothing in this Motion shall be construed as a request for authority to assume any
executory contract under section 365 of the Bankruptcy Code or affect the Debtors’ right to
assume or reject any executory contract.
VI. NOTICE
39. Notice of this Motion has been given to: (a) the Office of the United States
Trustee; (b) the creditors the Debtors’ consolidated list of twenty (20) largest unsecured
creditors; (c) counsel to the Debtors’ secured lenders; and (d) all other parties requesting notice
pursuant to Bankruptcy Rule 2002. In light of the nature of the relief requested, the Debtors
submit that no further notice is required.
WHEREFORE, the Debtors respectfully request that the Court enter an order (a)
authorizing, but not directing, the Debtors to pay or otherwise honor the Debtors’ Prepetition
Employee Obligations, (b) authorizing the Debtors to make deductions from the Employees’
paychecks, (c) authorizing, but not directing, the Debtors to continue postpetition the Employee
Benefits in effect immediately prior to the Petition Date, (d) directing all banks to honor
prepetition checks for payment of such obligations, and (e) granting the Debtors such other and
further relief as is just and proper.
Respectfully submitted,
LYON WORKSPACE PRODUCTS, L.L.C.
By: s/ Daniel A. Zazove
One of the proposed attorneys for the
Debtor
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Daniel A. Zazove, ARDC No. 3104117
Kathleen A. Stetsko, ARDC No. 6297704
Charles R. Gibbs, ARDC No. 6309075
Perkins Coie LLP
131 South Dearborn Street, Suite 1700
Chicago, IL 60603-5559
312.324.8400
63897-0002/LEGAL25579843.1 -14-
15. UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF ILLINOIS
Eastern Division
In Re: ) BK No.: 13-2100
Lyon Workspace Products, L.L.C. et al. ) (Jointly Administered)
) Chapter: 11
)
Honorable Janet S. Baer
)
)
Debtor(s) )
ORDER (A) AUTHORIZNG, BUT NOT DIRECTING, PAYMENT OF PREPETITION
PRIORITY WAGES, SALARIES AND EMPLOYEE BENEFITS AND CONTINUATION OF
EMPLOYEE BENEFIT PLANS AND PROGRAMS POSTPETITION, (B) AUTHORIZNG, BUT
NOT DIRECTING, DEDUCTIONS FROM EMPLOYEES’ PAYCHECKS, AND (C)
DIRECTING ALL BANKS TO HONOR PREPETITION CHECKS FOR PAYMENT OF
PREPETITION EMPLOYEE OBLIGATIONS
Upon the motion of the above-captioned debtors and debtors-in-possession (collectively, the
“Debtors”) seeking an order (a) authorizing, but not directing, the Debtors to pay or otherwise honor the
Debtors’ employee-related prepetition priority obligations to, or for the benefit of, employees, and to
continue postpetition the employee benefit plans and programs in effect immediately prior to the filing
of this case; (b) authorizing, but not directing, the Debtors to make deductions from employees’
paychecks; (c) directing all banks to honor prepetition checks for payment of the Debtors’ prepetition
employee obligations; and (d) granting related relief; the Court finding that (i) it has jurisdiction over
the matters raised in the Motion pursuant to 28 U.S.C. § 1334; (ii) this is a core proceeding pursuant to
28 U.S.C. § 157(b)(2); (iii) notice of the Motion and the hearing on the Motion was sufficient under the
circumstances; (iv) the relief requested in the Motion is warranted; and (v) upon the record herein; and
after due deliberation thereon, good and sufficient cause exists for the granting of relief as set forth
herein;
IT IS HEREBY ORDERED THAT:
1. The Motion is granted.
2. All objections to the Motion or the relief requested therein that have not been made, withdrawn,
waived, or settled, and all reservations of rights included therein, are overruled and disallowed on the
merits.
3. The Debtors are authorized, but not directed, to pay certain of the Prepetition Employee
Obligations; provided, however, that payments to each Employee after the Petition Date on account of
amounts accrued prior to the Petition Date shall not exceed amounts afforded priority status by any
applicable provision of section 507 of the Bankruptcy Code; provided further, however, that any
payments to each Employee shall be in accordance with the court approved debtor-in-possession
financing / cash collateral order and corresponding Budget;
4. The Debtors are authorized, but not directed, to continue the Employee Benefits; provided further,
however, that any payments to each Employee shall be in accordance with the court approved debtor-in-
possession financing / cash collateral order and corresponding Budget;
5. In accordance with this Order and any other order of this Court, each of the banks and financial
institutions at which the Debtors maintain their accounts relating to the payment of the Employee
Rev: 20130104_bko
16. Obligations and the Employee Payment, are authorized to honor checks presented for payment, and to
honor all funds transfer requests made by the Debtors related thereto, to the extent that sufficient funds
are on deposit in such accounts;
6. The relief granted herein shall not constitute or be deemed an assumption or an authorization to
assume any executory contract or agreement, including, but not limited to, any benefit plans,
employment agreements, or severance agreements to which the Debtors are party;
7. The relief set forth herein is necessary to avoid immediate and irreparable harm to the Debtors'
estates; and
8. The Court retains jurisdiction to hear and determine all matters arising from the entry of this Order.
Enter:
Dated: United States Bankruptcy Judge
Prepared by:
Daniel A. Zazove, ARDC No. 3104117
Kathleen A. Stetsko, ARDC No. 6297704
Charles R. Gibbs, ARDC No. 6309075
Perkins Coie LLP
131 South Dearborn Street, Suite 1700
Chicago, IL 60603-5559
312.324.8400
Rev: 20130104_bko