Case No. 02-83984-SSM Jointly AdministeredUnited States Bankruptcy Court, E.D. Virginia, Alexandria Division.
March 18, 2003.
John Wm. Butler, Jr. and John K. Lyons, SKADDEN, ARPS, SLATE, MEAGHER FLOM; Lawrence E. Rifken and Douglas M. Foley, McGUIREWOODS LLP, Attorneys for Debtors and Debtors-in-Possession.
STIPULATION AND ORDER BETWEEN DEBTORS AND BLUMENFELD DEVELOPMENT GROUP, LTD.
STEPHEN S. MITCHELL, United States Bankruptcy Judge
For and in consideration of the mutual promises, covenants, and agreements set forth herein, US Airways Group, Inc. and seven of its subsidiaries and affiliates, debtors and debtors-in-possession in the above-captioned cases (collectively, the “Debtors”),[1] and Blumenfeld Development Group, Ltd. (the “Landlord” and with the Debtors, collectively, the “Parties”) hereby stipulate and agree to the entry of an order (the “Stipulation”) as follows:
RECITALS
WHEREAS, on August 11, 2002 the Debtors filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code, 11 U.S.C. § 101 et seq. (the “Bankruptcy Code”); and
WHEREAS, the Debtors continue to operate their businesses and manage their properties as debtors in possession pursuant to sections 1107 and 1108 of the Bankruptcy Code; and
WHEREAS, the Debtors entered into that certain lease (the “Lease”), dated as of August 16, 1989 as amended, among Trump Shuttle, Inc. and LaGuardia Corporate Center Associates, LLC in connection with the property located at 75-20 Astoria Boulevard, Queens, New York (the “Premises”); and
WHEREAS, the Lease required the Debtors to pay rent monthly to the Landlord, in advance, on the first day of each month, in the amount of $90,037.05; and
WHEREAS, on or about December 9, 1998, Eastern Paralyzed Veterans Association (“EPVA”) subleased approximately 40% of the Premises from the Debtors (the “EPVA Sublease”); and
WHEREAS, EPVA paid rent monthly in the amount of $26,258.08, in advance, on the first day of each month, throughout the term of the EPVA Sublease; and
WHEREAS, in August 2002, prior to the Petition Date, EPVA timely paid rent due the Debtors under the EPVA Sublease for the period August 1, 2002 through August 31, 2002; and
WHEREAS, on August, 2002, prior to the Petition Date, the Debtors paid rent to the Landlord by check, and the Debtors’ bank dishonored such check; and
WHEREAS, on August 12, 2002, the Court entered an Order authorizing the rejection of the Lease as of the Petition Date (Docket No. 79); and
WHEREAS, EPVA continued to occupy the Premises through August 31, 2002 despite the Debtors’ rejection of the Lease on the Petition Date; and
WHEREAS, the Landlord did not receive rent from EPVA for the period August 1, 2002 through August 31, 2002.
NOW THEREFORE, in consideration of the foregoing, the Landlord and the Debtors, by and through their undersigned counsel, hereby agree and stipulate as follows, subject to approval of the Bankruptcy Court:
1. The Debtors shall pay $17,787.73 to the Landlord within five business days of the date hereof for rent received from EPVA and which applied to the period after the Debtors surrendered the Premises.
2. The Debtors agree that the Landlord may submit a claim for attorneys’ fees in the Debtors’ chapter 11 proceedings related to the collection of rent that the Debtors received from EPVA and which applied to the period after the Debtors surrendered the Premises and that the Debtors reserve all rights with respect to such fees.
3. The Parties hereto represent and warrant to each other that they are authorized to execute this Stipulation; that each has full power and authority to enter into and perform in accordance with the terms of this Stipulation; and that this Stipulation is duly executed and delivered and constitutes a valid and binding agreement in accordance with its terms.
4. This Stipulation constitute the entire agreement between the parties hereto with regard to the subject matter hereof and shall not be modified, altered, amended or vacated without the prior written consent of the Parties. No statement made or action taken in the negotiation of this Stipulation may be used by the Parties for any purpose whatsoever.
5. This Stipulation may be executed and delivered in original or facsimile counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
6. The Bankruptcy Court shall retain jurisdiction over the Parties hereto and this Stipulation, including, without limitation, for the purposes of interpreting, implementing and enforcing the terms and conditions.
The terms of the agreement as set forth above are SO ORDERED this 18th day of March 2003.