Case No 00-21915-11-JTF.United States Bankruptcy Court, D. Kansas
August 15, 2000.
Christopher J. Redmond KS #7307, Mark T. Benedict, KS #16418 HUSCH EPPENBERGER, LLC, Kansas City, Missouri; for Debtor.
SUPPLEMENTAL ORDER REGARDING USE OF CASH COLLATERAL
JOHN T. FLANNAGAN, Judge.
NOW THIS 9th day of August, 2000, this matter came on for consideration of the Emergency Motion For Use of Cash Collateral And For Entry of Interim Order Approving Stipulation For Use of Cash Collateral By And Between Debtor And Bank of America (the”Cash Collateral Motion”) filed by Turner Boisseau, Chartered(“Debtor”). Debtor appears by, and through counsel, Christopher J. Redmond and Mark T. Benedict of the law firm of Husch
Eppenberger, LLC. Bank of America, N.A. (“BOA”) appears by and through counsel, Cynthia Dillard of the law firm of Bryan, Cave, LLC. Other appearances are as identified in the record.
Creditors H. Lee Turner, Elizabeth L. Turner, Turnco, Inc., and Lee Turner, P.A. (the “Turner Creditors”) filed an objection to the Cash Collateral Motion to the extent it requested payment of any wages or expenses payable to Eldon Boisseau (“Boisseau”), an officer and shareholder of the corporation.
The Court having jurisdiction hereof and having reviewed the files and records in this case, and having heard the statements of counsel and argument, finds that good cause exists for the entry of this interim order.
IT IS FOUND, DETERMINED, ORDERED, AND ADJUDGED that:
1. This Court has jurisdiction over these proceedings and the parties and property affected thereby pursuant to 28 U.S.C. § 157
(b) and 1334. This is a core proceeding under 28 U.S.C. § 157
(b)(2).
2. On August 4, 2000, the Debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code.
3. Also on August 4, 2000, the Debtor filed the Cash Collateral Motion seeking approval on an interim and final basis of a certain agreed order for the use of cash collateral (the”Agreed Order”). The Agreed Order is attached hereto as anExhibit and incorporated herein by reference.
4. The continued, uninterrupted use of cash collateral is in the best interest of the Bankruptcy Estate.
5. The Court will authorize the use of cash collateral by the Debtor on the terms and conditions of the Agreed Order on aninterim basis only. The Court expressly reserves for consideration at a final hearing the issues raised at the hearing on the interim use of cash collateral as reflected in the record as to the reasonableness and necessity of, inter alia, the following provisions: (a) the proposed grant of a super-priority claim to BOA; (b) the proposed grant of a blanket lien on the Debtor’s assets with priority over other claims to BOA; (c) the proposed grant of a lien on the Chapter 5 causes of action to BOA; and (d) the recognition of the secured lien position of BOA. The Court will consider the appropriateness of the inclusion of these various provisions at the time of the final hearing on the use of cash collateral including any provisions in the “Agreed Order” not mentioned in this paragraph.
6. BOA, the IRS and all other parties claiming an interest in the cash collateral shall be granted replacement liens to the extent of the use of cash collateral in the order of their pre-petition priorities and to the extent the pre-petition liens are held to be valid liens. This Order is without prejudice to the avoidance actions against the Turner Creditors.
8. BOA shall file with the Court copies of documents evidencing its debt, security interest, and perfection of its security interest.
9. A copy of this Order together with the Agreed Order shall be served on parties interest as required by the Bankruptcy Rules and as directed by this Court. Counsel are also directed to serve a notice of the hearing on parties in interest entitled to notice under the Bankruptcy Rules and as directed by this Court.
10. A final hearing to consider the use of cash collateral shall be held on September 13, 2000 at 9:00 a.m. to consider the entry of the Agreed Order as a final order.
IT IS SO ORDERED.