Case No. 02-B02474 (Jointly Administered)United States Bankruptcy Court, N.D. Illinois, Eastern Division.
March 6, 2002
STIPULATED ORDER TO LIFT STAY TO TERMINATE CERTAIN SURETY BOND’S OF HARTFORD
SUSAN PIERSON SONDERBY, United States Chief Bankruptcy Judge
This matter coming before the court on Hartford Insurance Company’s (“Hanford”) motion to lift the automatic stay in order to terminate certain liquor, hunting, and fishing license surety bonds (the “license Bonds”) it issued on behalf of Kmart Corporation and certain of its domestic subsidiaries and affiliates (the “Debtor”); the Debtor and Hartford Insurance Company agreeing to the entry of this order;
THE COURT HEREBY ORDERS:
1. The Debtor agrees to provide adequate protection to Hartford for the License Bonds, as provided herein, through and until April 24th, 2002;
2. The Debtor agrees to continue to pay all postpetition obligations of it relative to the License Bonds, pursuant to the General Indemnity Agreement entered into between the Debtor and in favor of Hartford, dated January 8th, 2001 and in accordance with the ordinary course of’ business as permitted by court order, through and until April 24th, 2002. If the Debtor fails to do so, to the extent of such failure, Hartford is granted an administrative claim under § 503(h)(1);
3. In consideration of the Debtor’s representation and agreement provided in paragraphs 1 and 2, Hartford agrees to not cancel the License Bonds through and until April 24th, 2002;
4. If any of the items listed below in subparagraph (a) trough (b) occur the stay is lifted under Section 362(d)(2) and Hartford is entitled to cancel the License Bonds in accordance with the terms of the License Bonds. The events lifting the stay and cancelling the License Bonds are as follows:
a. The Debtor’s breach of either paragraphs 1 or 2 of this Agreed Order;
b. The Debtor’s breach of any provision of this Agreed Order.