Filed: Dec. 29, 2011
Latest Update: Dec. 29, 2011
Summary: STIPULATION AND CONSENT ORDER CONTINUING FINAL STIPULATION AND CONSENT ORDER GRANTING USE OF CASH COLLATERAL AND ADEQUATE PROTECTION AND APPROVING COMPROMISE DAVID E. RICE Bankruptcy Judge WHEREAS, on September 1, 2011, the Court entered the Final Stipulation and Consent Order Granting use of Cash Collateral of First Mariner Bank and Adequate Protection and Approving Compromise ("Cash Collateral Order") permitting the Debtor 1 , with the consent of First Mariner Bank ("First Mariner"), to use
Summary: STIPULATION AND CONSENT ORDER CONTINUING FINAL STIPULATION AND CONSENT ORDER GRANTING USE OF CASH COLLATERAL AND ADEQUATE PROTECTION AND APPROVING COMPROMISE DAVID E. RICE Bankruptcy Judge WHEREAS, on September 1, 2011, the Court entered the Final Stipulation and Consent Order Granting use of Cash Collateral of First Mariner Bank and Adequate Protection and Approving Compromise ("Cash Collateral Order") permitting the Debtor 1 , with the consent of First Mariner Bank ("First Mariner"), to use ..
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STIPULATION AND CONSENT ORDER CONTINUING FINAL STIPULATION AND CONSENT ORDER GRANTING USE OF CASH COLLATERAL AND ADEQUATE PROTECTION AND APPROVING COMPROMISE
DAVID E. RICE Bankruptcy Judge
WHEREAS, on September 1, 2011, the Court entered the Final Stipulation and Consent Order Granting use of Cash Collateral of First Mariner Bank and Adequate Protection and Approving Compromise ("Cash Collateral Order") permitting the Debtor1, with the consent of First Mariner Bank ("First Mariner"), to use Cash Collateral on a final basis pursuant to the approved budgets attached thereto as Exhibit A;
WHEREAS, the Cash Collateral Order provides in II, B that the First Mariner DIP Account shall be maintained at Columbo Bank, but the Debtor was unable to open a debtor-in-possession account at Columbo Bank and has opened the First Mariner DIP Account and its DIP operating account at First Mariner;
WHEREAS, paragraph 21 of the Cash Collateral Order allows the terms thereof to continue without further notice or hearing for a Supplemental Period provided that the Debtor submits Supplemental Budgets for the Supplemental Period of November 1, 2011 through November 30, 2011 (the "First Supplemental Period"); and
WHEREAS, pursuant to a Stipulation and Consent Order Continuing Final Stipulation and Consent Order Granting Use of Cash Collateral and Adequate Protection and Approving Compromise (" Stipulation Extending Cash Collateral Order"), this Court extended the Cash Collateral Order through November 30, 2011, as modified by the Stipulation Extending Cash Collateral Order; and
WHEREAS, the Debtor has requested that First Mariner further extend the Cash Collateral Order (as modified) through the earlier of a closing on the auction sale of the real property subject to First Mariner's liens or February 29, 2012 (the" Second Supplemental Period"); and
WHEREAS, provided the Debtor complies with the terms of the Cash Collateral Order as modified and extended by this Stipulation, First Mariner consents to the use of Cash Collateral for the actual and necessary business expenses set forth on Exhibit A during the Second Supplemental Period.
NOW THEREFORE, IT IS AGREED, STIPULATED TO AND ORDERED THAT;
A. Any and all revenues, proceeds, products, profits and rents of or from the East Read Property, the St. Paul Property or the Pre-Petition Collateral received on a post-petition basis by the Debtor shall continue to be collected, received and maintained by the Debtor in a separate debtor-in-possession account at First Mariner Bank (the "First Mariner DIP Account") and shall not be used except in accordance with the terms of the Supplemental Budgets.
B. The Debtor shall continue to maintain its debtor-in-possession operating account at First Mariner.
C. Paragraph II D of the Cash Collateral Order is deleted and in lieu thereof the following is inserted:
The Debtor shall timely provide to First Mariner: (a) all reporting and other information as required under the First Mariner Pre-Petition Loan Documents; (ii) a copy of each check issued by the Debtor with a copy of each bill the check is paying at the time the check is sent to the creditor; (ii) rent rolls and the individual tenant sheets for each tenant updated at the time of each rental payment or other activity with respect to the tenant; (iii) a monthly report in form and content acceptable to First Mariner, no later than the 22nd of each month, on a property-by-property basis, comparing actual collections and expenditures (by expense category) on a cash basis to those set forth in the Supplemental Budgets for that month and, upon the reasonable request of First Mariner, such other information pertaining to the Debtor's operations, financial affairs, and the Collateral; (iii) all documents and information submitted or requested by the United States Trustee, and (iv) all documents filed by the Debtor with the Court.
D. Except for an emergency expenditure, all monthly expenditures for the actual and necessary business expenses permitted to be paid under this Order for the Read Street Property and the St. Paul Street Property shall be paid prior to the 22nd of the month.
E. The Debtor is permitted to use Cash Collateral on a final basis to pay the actual and necessary expenses of operating and maintaining the Pre-Petition Collateral for the Second Supplemental Period as set forth on the Supplemental Budgets attached hereto as Exhibit A and on the terms approved by the Court in the Cash Collateral Order, including the making of adequate protection payments as required by III, C of the Cash Collateral Order.
F. Nothing in this Stipulation shall prejudice the rights of the Debtor or First Mariner with respect to the Debtor's continued use of Cash Collateral in accordance with Paragraph 21 of the Cash Collateral Order.
G. The Debtor is authorized to use the Cash Collateral to pay the expenses shown on the Supplemental Budgets until the earlier of (a) confirmation of a plan of reorganization; (b) appointment of a Chapter 11 trustee; (c) conversion of this case to a Chapter 7 case; (d) dismissal of this case; (e) the failure of the Debtor to comply with any material terms, conditions or covenants contained in this Order or the Cash Collateral Order and such violation remains uncured for a period of five (5) business days after notice thereof from First Mariner; (f) the entry of any order by the Bankruptcy Court granting a super-priority claim or lien pari passu with or senior to those liens held by First Mariner; (g) the Debtor's failure to make any payment due under the Cash Collateral Order within three (3) business days of when due or the Debtor's use of Cash Collateral to pay expenses not contained in the Supplemental Budgets; (h) any judgment or order as to a post-petition liability or debt for the payment of money in excess of $10,000.00 shall be rendered against the Debtor and the enforcement thereof shall not have been stayed; (i) the closing of a sale of any of the Debtor's assets; (j) the cancellation of the auction sale for the Read Street Property or the St. Paul Street Property; (k) failure of the Debtor to fully cooperate with the auctioneer in scheduling, preparing for the auction, the auction of the Read Street Property and St. Paul Property, and the closing on the auction; or (1) further order of the Court.
H. Except as expressly modified hereby, the terms of the Cash Collateral Order are incorporated herein.
EXHIBIT A
Dec 2011 Jan 2012 Feb 2012
Revenues
Rent — Income
9 Rent — 712 St Paul St 8,680.00 8,680.00 8,680,00
______________________________
GROSS REVENUE 8,680.00 8,680.00 8,680.00
229 Reserve for Uncollected 7.5% 651,00 651.00 651.00
4% Net Revenues 8,029.00 8,029.00 8,029.00
______________________________
Cost of Sales
712 St Paul — Utilities 205.00 205.00 205.00
712 St Paul — SPDS
712 St Paul — RE, Taxes
712 St Paul — Water & Sewer 0.00 150.00 0.00
712 St Paul — Build Insurance 125.00 125.00 125.00
712 St Paul — Termite Control 150.00 150.00
712 St Paul — Eviction 75.00 75.00 75.00
712 St Paul — MFDL
712 St Paul — Lead Insp. 85.00 85.00
712 St Paul — Trash Disposal $61.04 $61.04 $61.04
Total Operation Cost 466.04 851.04 701.04
Gross Profit 7,562.96 7,177.96 7,327.96
ADMIN EXPENSES
INTEREST EXPENSE
4% ADVERTISING 20.00 20.00 20,00
4% AUTO EXPENSE 70.00 70.00 70.00
4% BANK CHARGES
4% GROUND RENT 0.00 0.00 0.00
4% UTILITIE COST Office 50.00 50.00 50.00
4% Building Permits 0.00 0.00 0.00
4% MANAGEMENT FEES 200.00 200.00 200.00
4% LEGAL FEES 300.00 300.00 300.00
4% Licenses Expense 0.00 0.00 0.00
4% MAINTENANCE EXPENSE 380.00 380.00 380.00
4% Building Material Purchase 150,00 150.00 150.00
4% OFFICE EXPENSE 20.00 20.00 20.00
4% EMPLOYEE EXP 400.00 400.00 400.00
4% Workers Comp Insurance 27.00 27.00 27.00
4% TAXES — PERSONAL PROPER 0,00 0,00 0,00
4% Postage Expense 5.00 5,00 5.00
4% RENT 100.00 100.00 100.00
4% TELEPHONE 40.00 40.00 40.00
4% Travel Expense 25.00 25.00 25.00
_____________________________
Total Admin Expenses 1,787.00 1,787.00 1,787.00
Net Income 5,775.96 5,390.96 5,540.96
Bate Paid
Check #
Revenues Dec 2011 Jan 2012 Feb 2012.
Rent — income
Rent — 13 E. Read St 10,190.00 10,190.00 10,190.00
---------------------------------
10 GROSS REVENUE 10,190.00 10,190.00 10,190.00
Reserve for Uncollected 7:5% 764.25 764.25 764.25
229
4% Net Revenues 9,425.75 9,425.75 9,425.75
------------------------------------
Cost of Sales
13 E Read — Utilities 305.00 305.00 305.00
13 E Read — SB Taxes
13 E Read — RE [axes
13 E Read — Water & Sewer 0.00 150.0 0.00
13 E Read — Build Insurance 225.00 225.00 225.00
13 E Read — Termite Control ... 50.00 50.00
13 E Read — Eviction 30.00 30.00 30.00
13 E Read — MFDL 0.00 0.00 0.00
13 E Read — Lead Insp. 0.00 50.00 50.00
13 E Read — Trash Disposal $108.07 $108.07 $108.07
Total Operation Cost 668.07 918.07 768.07
Gross Profit 8,757.68 8,507.68 8,657.68
ADMIN EXPENSES
INTEREST EXPENSE
4% ADVERTISING 0.00 20.00 20.00
4% AUTO EXPENSE 70.00 70.00 70.00
4% BANK CHARGES
4% GROUND RENT 0.04 0.00 0.00
4% UTILITIE COST\ Office 50.00 50.00 50.00
4% Building Permits 0.00 0.00 0.00
4% MANAGEMENT FEES 200.00 200.00 200.00
4% LEGAL FEES 300.00 300.00 300.00
4% Licenses Expense 0.00 0.00 0.00
4% MAINTENANCE EXPENSE 380.00 380.00 380.00
4% Building Material Purchase 150.00 75.00 75.00
4% OFFICE EXPENSE 20.00 20.00 20.00
4% EMPLOYEE EXP 400.00 400.00 400.00
4% Workers Comp Insurance 27.00 27.00 27.4
4% TAXES — PERSONAL PROPEF 0.00 0.00 0.0
4% Postage Expense 5,00 5.00 5.00
4% RENT 100.00 100.00 100.00
4% TELEPHONE 40.00 40.00 40.00
4% Travel Expense 25.00 25.00 25.00
_____________________________
Total Admin Expenses 1,767.00 1,712.00 1,712.00
Net Income 6,990.68 6,795.68 6,954.68
Date Paid
Check Number
