Filed: Jan. 13, 2012
Latest Update: Jan. 13, 2012
Summary: CONSENT ORDER AUTHORIZING DEBTOR TO USE CASH COLLATERAL, AND GRANTING ADEQUATE PROTECTION DAVID E. RICE, Bankruptcy Judge. This matter originally came before the Court on the Emergency Motion for Authority to Use Cash Collateral and Grant Adequate Protection Therefor (the "Motion")(dkt. 4) filed by Swami Shree, LLC (the " Debtor "), together with agreements of the Debtor, S4H Hospitality LLC ("S4H" or the " Senior Creditor "), and First-Citizens Bank & Trust Company (" First Citizens " or the
Summary: CONSENT ORDER AUTHORIZING DEBTOR TO USE CASH COLLATERAL, AND GRANTING ADEQUATE PROTECTION DAVID E. RICE, Bankruptcy Judge. This matter originally came before the Court on the Emergency Motion for Authority to Use Cash Collateral and Grant Adequate Protection Therefor (the "Motion")(dkt. 4) filed by Swami Shree, LLC (the " Debtor "), together with agreements of the Debtor, S4H Hospitality LLC ("S4H" or the " Senior Creditor "), and First-Citizens Bank & Trust Company (" First Citizens " or the ..
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CONSENT ORDER AUTHORIZING DEBTOR TO USE CASH COLLATERAL, AND GRANTING ADEQUATE PROTECTION
DAVID E. RICE, Bankruptcy Judge.
This matter originally came before the Court on the Emergency Motion for Authority to Use Cash Collateral and Grant Adequate Protection Therefor (the "Motion")(dkt. 4) filed by Swami Shree, LLC (the "Debtor"), together with agreements of the Debtor, S4H Hospitality LLC ("S4H" or the "Senior Creditor"), and First-Citizens Bank & Trust Company ("First Citizens" or the "Junior Creditor") concerning the Debtor's use of the cash collateral of the Senior Creditor and Junior Creditor. On August 12, 2011 this Court entered a Consent Order Approving Interim Agreement for Use of Cash Collateral, Authorizing Debtor to Use Cash Collateral, and Granting Adequate Protection (the "Interim Order")(dkt. 27). The Interim Order covered the period through September 15, 2011. On September 8, 2011, this Court entered a Stipulation and Consent Order Extending Interim Agreement for Use of Cash Collateral, Authorizing Debtor to Use Cash Collateral, and Granting Adequate Protection (Through October 15, 2011)(the "Second Interim Order"). On October 5, 2011, this Court entered a Stipulation and Consent Order Extending Interim Agreement for Use of Cash Collateral, Authorizing Debtor to Use Cash Collateral, and Granting Adequate Protection (Through November 11, 2011) (the "Third Interim Order"). On November 3, 2011 this Court entered a Stipulation and Consent Order Extending Interim Agreement for Use of Cash Collateral, Authorizing Debtor to Use Cash Collateral, and Granting Adequate Protection (Through January 12, 2012)(the "Fourth Interim Order"). The Fourth Interim Order scheduled final hearing on further use of cash collateral for January 11, 2012 (the "Final Hearing").
Upon consideration of the Motion and any opposition thereto, and upon notice and hearing on the Motion, it is by the United States Bankruptcy Court for the District of Maryland, hereby ORDERED:
Except as set forth below, all terms set forth in the Interim Order, the Second Interim Order, the Third Interim Order and the Fourth Interim Order are hereby incorporated by reference and shall remain in full force and effect. Except as provided herein, no terms of the Interim Order are amended, altered or otherwise nullified.
1. Secured Status of First Citizens in Cash Collateral.
Cash Collateral shall not be authorized to First Citizens under this Order.
2. Authorization to Use Cash Collateral.
The Debtor is authorized to use Cash Collateral in the amounts, at the times, and for the purposes set forth in the Budget (attached hereto as Exhibit 1) for the period from January 12, 2012 through February 17, 2012 (the "Specified Period"). The Debtor is prohibited from making expenditures or disbursements except as specifically itemized in the Budget or as hereafter expressly authorized by the Senior Creditor, or as hereafter expressly authorized by an Order of this Court entered after notice to the Senior Creditor an opportunity for a hearing.
3. Adequate Protection Payments to Senior Creditor.
As further adequate protection to the Senior Creditor during the Specified Period, the Debtor shall continue monthly payments to Senior Creditor in the amount of $15,000.00.
4. Escrow to Property Improvement Plan Expenditures.
The Debtor shall continue to escrow funds on a monthly basis to be applied to the Property Improvement Plan expenditures required by its franchisor. The Debtor's monthly escrow for this purpose shall be in the amount of $8,500.00 as provided in Debtor's Budget attached hereto as Exhibit 1.
SO ORDERED.
EXHIBIT 1
Swami Shree LLC
La Quinta Inn and Suites Elkton MD
Cash flow projection and budget from Jan 2012-February 2012
Rev 2011 $ 56,873.57 $ 51,153.94
Jan-12 Feb-12
Average Reve. Projection Per Month $ 69,385.76 $ 62,407.81
Interest Payment Only @ 6% for 3.0M $ 15,000.00 $ 15,000.00
Franchise fees $ 14,442.19 $ 10,192.54
Utilities $ 6,000.00 $ 6,000.00
Water/sewer $ 800.00 $ 800.00
Insurance $ 700.00 $ 700.00
CC Processing and Bank fees $ 1,873.42 $ 1,685.01
Other Service fees $ 1,000.00 $ 1,000.00
Payrolls and taxes $ 20,121.87 $ 19,970.50
Property tax $ 5,000.00 $ 5,000.00
Personal property tax $ 900.00 $ -
Telephone/cable/internet $ 2,250.00 $ 2,250.00
office supply $ 350.00 $ 350.00
room/Housekeeping Supply $ 1,901.17 $ 1,709.97
Cleaning Supply $ 950.00 $ 950.00
Breakfast-Food $ 2,500.00 $ 2,500.00
Landscaping/parking, snow removals $ 500.00 $ 500.00
Misc Exp $ 2,850.00 $ 2,850.00
Maintenance and repair $ 1,000.00 $ 1,000.00
PIP EXPENSE FOR 2012 $95,000.00
in next 12 months $ 8,500.00 $ 8,500.00
Break Even $ 86,638.64 $ 80,958.02
Cash Flow AFTER ALL THE
EXPENSES $ (17,252.89) $(18,550.22)
Based on annual review of acctual expenses
Projected Revenue includes continuation
of steady increases in revenue
