calumet sale motion

7/22/2019 Calumet Sale Motion

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INTHEUNITEDSTATESBANKRUPTCYCOURTFOR THENORTHERN DISTRICTOFILLINOIS

EASTERN DIVISIONI n r e : hapter 7CALUMETPHOTOGRAPHIC, NC., t a l . as e No. 14-08893

D e b t o r s . o i n t l y A d m i n i s t e r e dHonorable Eugene R. Wedoff

NOTICEOFMOTIONTO: SEEATTACHEDSERVICE IST

PLEASE TAKE NOTICE h a t on Tuesday, A p r i l 29, 2014, a t 9:30 a . m . , o r a ssoon t h e r e a f t e r a s c o u n s e l m a y be h e a r d , we s h a l l a p p e a r b e f o r e t h e Honorable Eugene R.Wedoff n t h e Court Room s u a l l y o c c u p i e d b y him, n t h e United S t a t e s Bankruptcy Court f o rt h e N o r t h e r n D i s t r i c t of I l l i n o i s , 2 1 9 South Dearborn S t r e e t , Chicago, I l l i n o i s , o r b e f o r e suchjudge who may be s i t t i n g i n h i s p l a c e and s t e a d , and p r e s e n t t h e a t t a c h e d T r u s t e e s Motion f o ra n Orde r(A) uthorizing a n d Approving the Sale of Certain of the Debtors A s s e t s Freea n d Clea r of Liens, Claims, n t e r e s t s , C h a rg es, a n d E n c umb r a n c e s; a n d (B) uthorizingAssumption a n d Assignment of Contracts a n d Leases, a t which time and p l a c e you ma ya p p e a r a s you s e e f i t .Dated: A p r i l 7, 2 014

C a t h e r i n e S t e e g e (01683529)M e l i s s a M. oot 62882466)Landon S . R a i f o r d (6297473)JENNER BLOCK, LP353 N. l a r k S t r e e tChicago, l l i n o i s 60654-3456

R e s p e c t f u l l y s u b m i t t e d ,CATHERINESTEEGE, o t i n d i v i d u a l l y b u t a si n t e r i m c h a p t e r 7 r u s t e e f o r t h e b a n k r u p t c y e s t a t eof each of h e above- c a p t i o n e d d e b t o r s .

BY: / s / C a t h e r i n e S t e e g eC a t h e r i n e S t e e g e

Case 14-08893 Doc 57 Filed 04/07/14 Entered 04/07/14 20:30:21 Desc MainDocument Page 1 of 26


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2267168.1

SERVICE LIST

ECF NOTIFICATION:

Debtors' Counsel

Mark A. Berkoff

Nicholas M. Miller

Neal, Gerber & Eisenberg LLP

Two North LaSalle Street

Suite 1700

Chicago, IL 60602-3801

Phone: (312) 269-8072/(312)269-5654

Email: [email protected]

Email: [email protected],[email protected],[email protected],

[email protected]

U.S. Trustee

Patrick S Layng

Office of the U.S. Trustee, Region 11

219 S Dearborn St

Room 873

Chicago, IL 60604

Phone: (312) 886-5785Email:

[email protected]

Counsel for IAC Goose Island LLC

Michael K. Desmond

William G. Cross

Figliulo & Silverman, P.C.

10 S. LaSalle, Suite 3600

Chicago, IL 60603

Phone: (312) 251-4600

Email: [email protected],

[email protected], [email protected]

Counsel for Square 407 Limited Partnership

J. David Folds

Baker Donelson

901 K Street NW

Suite 900

Washington, Dc 20001

Phone: (202) 508-3441

Email: dfolds@bakerdonelson

Counsel for BankDirect Capital Finance, LLC

Andrew D. Arons

Williams, Bax & Saltzman, P.C.

221 N. LaSalle Street, Ste. 3700

Chicago, IL 60601

Phone: (312) 372-3311

Email: [email protected], wisneski@wbs-

law.com, [email protected]

Counsel for RedRidge Finance Group, LLC,Credit Value Partners, LP, Credit Value Fund

III, LP and Credit Value Distressed Duration

Fund, LP,Chase Paymentech LLC

Peter A. Siddiqui

Kenneth J. Ottaviano

Katten Muchin Rosenman LLP

525 West Monroe Street, Ste 1900


Phone(312)902-5200

Fax: (312) 902-1061/(312) 577-4662

Email:[email protected],[email protected]



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SERVICE LIST

22267168.1


Louis J. Gale


221 N. LaSalle Street, Ste. 3700Chicago, IL 60601

Phone: (312) 372-3311


[email protected];KMorrissey@lewis-

kappes.com)

Counsel for Canon U.S.A.

Nancy A. Peterman

Rebecca D. Rosenthal

Greenberg Traurig, LLP77 West Monroe, Suite 3100

Chicago, IL 60601

Phone: (312) 456-8400


[email protected];

[email protected] ,

[email protected]

Counsel for George L. Eastman Co., LLC

Francis X Buckley

Thompson Coburn LLP

55 East Monroe, 37th FloorChicago, IL 60603

Phone: (312) 580-2210

Fax: (312) 782-1040


[email protected]

Counsel for Experian Marketing Solutions,

Inc. and CheetahMail, Inc.

Joseph D. Frank

Reed HeiligmanFrank Gecker LLP

325 North La Salle, St. Suite 625

Chicago, IL 60654

Phone: (312) 276-1400



5/26

SERVICE LIST

32267168.1

VIA U.S. MAIL

Chase Paymentech, LLC

Attn: Lazonia M. Clark

Business Analyst

14221 Dallas Pkwy, Bldg II

Dallas, TX 75254

Phone: (801) 823-3410



David J. Strubbe


221 N. LaSalle Street, Ste. 3700

Chicago, IL 60601

Phone: (312) 372-3311

Counsel for American Express Travel Related

Services Co., Inc.

Gilbert B. WeissmanBecket & Lee LLP

POB 3001

Malvern, PA 19355-0701

Phone (610) 644-7800

Fax: (610) 993-8493


Douglas B. Rosner

Goulston &Storrs

A Professional Corporation

400 Atlantic AvenueBoston, Massachusetts 02110-3333

Phone: (617) 482-1776

Fax: (617) 574-4112


Nancy O. Garelick, Esq.

SILVER AND ARSHT

1860 Bridgegate Street, Suite 100

Westlake Village, CA 91361Phone: (805) 495-4044, x107

Fax: (805) 494-4704


Jordan B. Everakes

Zacks & Freedman, PC

235 Montgomery Street, Suite 400

San Francisco, CA 94104Telephone: 415-956-8100

Facsimile: 415-288-9755


Creditor Calumetphoto.com

Thomas Martin

14101 Furlong Way

Germantown, MD 20874-6128

Counsel for MLK Associates, LLC

Benjamin D Pelton

2300 Clarendon Blvd Suite 700

Arlington, VA 22201

Phone: (703) 524-0770

Fax: (703) 522-4570

Email:[email protected]

Creditor Calumetphoto.com

Steven L. Goldberg

McNamee Hosea

6411 Ivy Lane, Suite 200

Greenbelt, MD 20770

Duncan SmithDK Mallon

107 Adell Pl

Elmhurst, IL 60603

Phone: (312) 344-0812

Fax: (312) 662-6141




6/26

SERVICE LIST

42267168.1

Cambridge

Charles Park Two, LLC

c/o Principal Real Estate Investors

Attn: Asset Management East States Region

801 Grand AvenueDes Moines, IA 50392-1370

Chicago- Bliss/Chicago Cherry

Cherry LLC

Attn: David Kahnweiler

c/o Colliers, Bennett & Kahnweiler Inc.

9700 West Bryn MawrRosemont, IL 60018

Chicago- Rush

Dee Wells

Draper and Kramer, Inc,

As Managing Agent for Landlord

33 West Monroe Street


Phone: (312) 346-8600

Fax: (312) 855-9358

Ft. Lauderdale

Gateway Shoppes, LLC

c/o Carl McCormack

P.O. Box 460579

Ft. Lauderdale, FL 33346

Los Angeles

George L. Eastman1350 More Ranch Road

Santa Barbara, CA 93111-2922

Phone: (805) 964-9908

Fax: (805) 692-2811

New York

Gregg Scherken20 West 22 Associates LLC

c/o ABS Partners Real Estate, LLC

200 Park Avenue South

New York, NY 10003

New York

Elk 22 Realty LLC

Attn: Bernard H. Kayden

550 Mamaroneck Avenue, Suite 404

Harrison, NY 10528

Oak Brook

Teachers' Retirement System of the State of

Illinois

c/o Commonwealth Realty Advisors, Inc.

Attn: Executive Vice President

Suite 3000Chicago, IL 60603

Oak Brook

James T. Mayer

Holland & Knight LLP

131 S. Dearborn Street

30th Floor

Chicago, IL 60603

Oak Brook

Attn: C. Michelle Panovich, Principal

The Oaks of Oak Brook Shopping Center

c/o Mid- America Asset Management Inc.

Two Mid-America Plaza, Third Fl.

Oakbrook Terrace, IL 60181



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SERVICE LIST

52267168.1

Philadelphia

Cedar Riverview LP

C/o Cedar Shopping Centers, Inc.

44 South Bayles Avenue, Ste. 304

Port Washington, NY 11050

Rockville

Kristen Dean, Property Manager

Congressional Village Associates, LLC

P.O. Box 1094

Warrenton, VA 20188

San Diego

Attn: Cathy Hall, Vice President

Escondido Gateway 03, LP

By, ACF Property Management Inc.

12411 Ventura Boulevard

Studio City, CA 91604

Phone: (818) 505-6777

Fax: (818) 505-6778

San Diego

Sara Hall

GDA Real Estate Service, LLC

8301 East Prentice Avenue, Ste 210

Greenwood Village, CO 80111

San Francisco

Robert C. KeeneyKeeney Family Trust

100 Bush Street, Ste 1300

San Francisco, CA 94104

Phone: (415) 675-7000

Santa Ana

Northern McFadden Ltd Partnershipc/o Bristol Group, Inc.

400 Montgomery Street, Ste 400

San Francisco, CA 94104

Tyson Corner

Mattias D. Renner

National Real Estate Management Corp.

Agent for MLK Associates, LLC

1830 Craig Park Ct., #101

St. Louis, MO 63146-4149

Tyson Corner

National Real Estate Management Corp.

9986 Manchester Road

St. Louis, MO 63122

Phone: (314) 878-5545

Fax: (314) 835-1068

Washington DC

Square 407 Limited Partnership

c/o Boston Properties, Inc.

401 9th Street, N.W. Suite 700

Washington, D.C. 20004

Joseph T. Moldovan

Chair, Bankruptcy and Restructuring Practice

Morrison Cohen LLP

909 Third Avenue

New York, NY 10022

Tel: 212.735.8603

Cell: 917.693.9682

Fax: 917.522.3103

[email protected]

Jay HalperanAmal U. Dave

Arent Fox LLP1717 K Street, NW

Washington, DC 20036-5342Phone: 202-857-6336

Fax: 202-857-6395

[email protected]@arentfox.com

Cisco Systems Capital Corporation1111 Old Eagle School Road

Wayne PA 19087



8/26

SERVICE LIST

62267168.1

MidAmerican Energy Company

Attn: Unregulated Retail Srvcs. ElectricContract Administration

4299 NW Urbandale Drive

Urbandale, IA 50322

Paetec/Windstream

4001 Rodney Parham Road

Little Rock, AR 72212

Latisys

Attn: Dave Stevens

393 Inverness ParkwayEnglewood, CO 80122

Latisys-Chicago

1808 Swift Drive, Building C

Oak Brook, IL 60523

DAVIS ALARMS, INC.147 W 25TH ST

NEW YORK, NY 10001-7205

Heiler Software Corporation2100 Seaport Blvd

Redwood City, CA 94063

Internal Revenue ServiceMail Stop 5110 CHI

230 South Dearborn

Chicago, IL 60604

San Francisco Tax CollectorP.O. Box 7427

San Francisco, CA 94120-7427

Illinois Department of RevenueBankruptcyLevel 7-425

100 West Randolph

Chicago, IL 60601

Illinois Department of Revenue

Bankruptcy

P O BOX 64338

CHICAGO IL 60664-0338

Internal Revenue Service

Centralized Insolvency OperationsPO BOX 7346

PHILADELPHIA PA 19101-7346

New York City Department of Finance

25 Elm P.aceBrooklyn, NY 11201

The Money Store Investment CorporationPO Box 162247

Sacramento, CA 95816

Key Equipment Finance Inc.10000 S. McCaslin Blvd

Superior, CO 80027

Cisco Systems Capital CorporationLease Processing Center

1111 Old Eagle School Road

Wayne, PA 19087

US Bancorp Manifest Funding1450 Channel Pkwy

Marshall, MN 56258

National City Commercial CapitalCorporation

995 Dalton Avenue

Cincinnati, Ohio 45203

Banc of America Leasing & Capital, LLC231 S. LaSalle Street

Chicago, IL 60697



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SERVICE LIST

72267168.1

International Paper Company

33 Lewis RdBinghampton, NY 13905

THE ROYAL BANK OF SCOTLAND

PLC, AS SECURITY TRUSTEECORPORATE AND STRUCTURED

FINANCE

250 Bishopsgate,London EC2M 4AA, United Kingdom

CSC

2711 Centerville Road

Suite 400

Wilmington, DE 19808

New York Department of Revenue

State Department of Taxation and Finance

W.A. Harrisman Campus

Albany, NY 12227-0125

NEW YORK CITY

Andrew French

Department of FinanceMunicipal Building

1 Centre StreetNew York, New York 10007

Washington DC Department of Tax and

Revenue

P.O. Box 96384Washington, DC 20090-6384

Florida Department of Revenue

5050 W. Tennessee St.Tallahassee, FL 32399-0125

Maryland Department of Revenue

Rhonda AllmondRevenue Administration Center

Comptroller of Maryland

110 Carroll St.Annapolis, MD 21411

Virginia Department of TaxationOffice of Customer Services

P.O. Box 26627

Richmond, VA 23261-6627

Massachusetts Department of Revenue436 Dwight Street

Springfield, MA 01103

Pennsylvania Department of RevenuePatsy Ricciuti

Dept.28046

Harrisburg, PA 17128-0406

County of Santa Barbara (California)1332 Anacapa St.

Santa Barbara, CA 93101

City of New York

General Correspondence

NYC Department of FinanceCorrespondence Unit

One Centre Street, 22nd Floor

New York, NY 10007

NYC Department of Finance

66 John Street, Room 104

New York, NY 10038

Orange County (California)

City Hall300 East Chapman Avenue

Orange California 92866

California

John Kingbury450 N. Street, CA 95814

Sacramento, CA 95814



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SERVICE LIST

82267168.1

Department of Finance, Administrative Officer,

915 L Street, Suite 1280,Sacramento, CA 95814

Illinois Department of Revenue

PO Box 19034Springfield, IL 62794-9034

Chicago Dept. of FinanceTax Division

333 S. State St., Room 300

Chicago, IL 60604

Vaughn Barber

Reich Brothers10618 Pico Blvd.

Los Angeles, CA 90064

Phone: 310-248-2979 (Ext. 705)Cell: 714-512-0799

Fax: 213-383-5985Email: [email protected]

Thomas E. Pabst (President)

Kathleen ParkerHYPERAMS, LLC

1501 Michael Drive

Wood Dale, Il 60191Phone: 847-499-7033

Cell: 847-530-5676Cell: 262-903-0602 (Parker)Email: [email protected]

David Barkoff (Director of Sales)

Ross Dove

Heritage Global Inc.12625 High Bluff Drive

San Diego, CA 92130

Phone: 650-649-0147

Cell: 650-759-2242


Steve Papillo

Capital Recovery Group, LLC

1654 King StreetEnfield, CT 06082

Phone: 800-300-6852

Cell: 860-250-0050


Bill Vining (Vice President BusinessDevelopment)

Adam Kirilichin

Optoro5001 Forbes Blvd.

Lanham, MD 20706

702 H. Street, NW Ste 200

Washington, DC 20001Phone: 770-558-3841

Cell: 404-789-6485Fax: 301-850-4779


Elaine Tseng (Senior Associate)ASM Capital

7600 Jericho Turnpike

Suite 302Woodbury, NY 11797

Phone: 516-422-7114




11/26

SERVICE LIST

92267168.1

Kenneth L. Baum

Cole, Schotz, Meisel, Forman & Leonard, P.A.25 Main Street

Hackensack, NJ 07601

Phone: 201-525-6327Cell: 201-463-3246Fax. 201-678-6327


Eric Mehl, Partner

Columbus Camera Group, Inc.55 E. Blake Avenue

Columbus, Ohio 43202

Phone: 614-267-0686Cell: 614-477-9930Email: [email protected]

Harrison Budd

Digital Services & EQ Supervisor

555 Minnesota St.San Francisco, CA 94107

Phone: 415-550-8732

Email: Harrison. [email protected]

Adam Prybelski (Omni-Channel Sales

Manager)

National Camera Exchange9300 Olson Memorial Highway

Golden Valley, MN 55427

Phone: 763-591-5183


Chris Taylor

EQ Supervisor250 Hudson St. 11

thFloor

NY, NY 10013

Phone: 212-924-4410


Eric Weiler

New Mill Capital Holdings, LLC1550 N. Cleveland Avenue

Suite 208

Chicago, IL 60610

Phone: 312-489-8493Fax: 312-878-6779


Gerard S. Catalanello (Partner) Counsel for

Sleepy (?)Duane Morris LLP

1540 Broadway

New York, NY 10036-4086Phone: 212-692-1037

Cell: 347-205-2920


Jonathan Hezghian5526 South Soto St.

Vernon, CA 90058

Cell: 310-310-1015Email: [email protected]



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SERVICE LIST

102267168.1

Mitchell H. Cohen

DJM Real Estate, LLC (an affiliate of GordonBrothers Group)

1350 Avenue of the Americas

Suite 2802New York, NY 10019Phone: 212-218-6806

Home: 561-988-9432

Cell: 617-901-0382Email: [email protected]

Nyk Westbrook

Bid It Up11426 Ventura Blvd.

Studio City, CA 91604

Phone: 818-508-7034Fax: 818-508-3025Email: [email protected]

Marc FentonStatman Harris & Eyrich, LLC

200 West Madison Street

Suite 3820Chicago, IL 60606

Direct: 312-251-9961Phone: 312-263-1070Fax: 312-263-1201

Eamil: [email protected]

Adam RussellNew Mill Capital Holdings, LLC

1550 N. Cleveland Avenue.

Chicago, Il 60610Phone: 312-489-8325

Fax: [email protected]

James Fralick (VP Merchandising)

Henrys Photo-Video-Digital119 Church Street

Toronto, ON M5C 2G5

Phone: 416-941-0565

Fax: 416-868-0243


Michelle Salazar

Jeff TanenbaumTiger Group

340 N. Westlake Blvd.

Suite 260

Westlake Village, CA 91362

Phone: 805-497-4999Cell: 818-326-4909 (JT0

Cell: 214-893-4169 (MS)Fax: 805-497-2211


[email protected]



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SERVICE LIST

112267168.1

Lisa Fournier

c/o Southern Photo125 E. NASA Blvd.,

Melbourne, FL 32901

Phone: 321-254-4224Cell: 321-720-7378Email: [email protected]

[email protected]

Counsel to Great American

John Sieger

Paige Barr

Katten, Muchin Rosenman LLP525 W. Monroe St.Chicago, IL 60661

Phone: 312-902-5494

Phone: 312-902-5644Fax 312-902-1016


Venice Gamble11426 Ventura Blvd.

2ndFloorStudio City, CA 91604Phone: 818-508-7034 (x215)

Fax: 818-508-3025


Bill Melvin Jr.Jennifer Steward

Liquid Asset Partners LLC4060 29

thStreet

Grand Rapids, MI 49512

Phone: 616-719-5917


[email protected]

Sid Lambersky

Joseph Checchio

Seth Marks (VP)

Stormy SimonOverstock.com

6350 South 3000 EastSalt Lake City, Utah 84121

Phone: 801-441-9351

Phone: 312-643-0829/312-316-3235Email: [email protected]

Dartise Johnson (Lead

Photographer/Manager)

Dartise Photography

2100 South Marshall BlvdChicago, IL 60623

Phone: 773-255-5221Fax: 312-377-1679




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SERVICE LIST

122267168.1

Derrick Kouyoumjian

PO Box 391745Cambridge, MA 02139

Phone: 617-905-1505

Morten Kucey

SB Capital Group1010 Northern Blvd. Suite 340

Great Neck, New York 11021

Phone: 703-518-5038Cell: 516-521-6439Office: 516-945-3420

Fax: 708-518-5368




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UNITEDSTATESBANKRUPTCYCOURTFORTHENORTHERNDISTRICTOF LLINOIS

EASTERN IVISIONI n r e : h a p t e r 7CALUMETPHOTOGRAPHIC, NC. t a l . ase No. 14-08893

D e b t o r s . o i n t l y AdministeredHonorable Eugene R. Wedoff

TRUSTEE SMOTIONFORANORDER A)AUTHORIZINGAND APPROVINGTHESALEOFCERTAINOFTHEDEBTORS SSETSFREEAND CLEAR OF IENS,

CLAIMS, NTERESTS,CHARGES, NDENCUMBRANCES;AND B)AUTHORIZINGASSUMPTIONAND ASSIGNMENTOFCONTRACTSAND LEASES

C a t h e r i n e S t e e g e , not i n d i v i d u a l l y b u t a s T r u s t e e t h e Trustee ) of t h e j o i n t l ya d m i n i s t e r e d above- c a p t i o n e d d e b t o r s c o l l e c t i v e l y t h e Debtors ), hereby moves h i s Court o ran Order p u r s u a n t t o 1 1 U.S.C. 1 0 5 a ) , 363 a nd 365 a nd F e d e r a l Rules of BankruptcyProcedure 2002, 6004, 6006 and 9014, a) u t h o r i z i n g a nd approving t h e s a l e of e r t a i n of h eDebtors' a s s e t s f r e e a nd c l e a r of l i e n s , c l a i m s , i n t e r e s t s , c h a r g e s an d encumbrances; a nd (b )a u t h o r i z i n g assumption an d assignment of l e a s e s a nd c o n t r a c t s under s e c t i o n 365 of t h eBankruptcy Code i n c o n n e c t i o n w i t h such s a l e . I n s u p p o r t of t h i s Motion, t h e T r u s t e er e s p e c t f u l l y s t a t e s a s f o l l o w s :

JURISDICTION1 . This Court h as u r i s d i c t i o n t o c o n s i d e r a nd d e t e r m i n e t h i s Motion p u r s u a n t t o 28

U.S.C. 1334. This m a t t e r i s a c o r e p r o c e e d i n g p u r s u a n t t o 2 8 U.S.C. 5 7 b ) 2 ) A ) and t h eT r u s t e e c o n s e n t s t o t h e e n t r y of a i n a l o r d e r . Venue i s p r o p e r b e f o r e t h i s Court p u r s u a n t t o 28U.S.C. 1 4 0 8 and 1409.



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2 . The s t a t u t o r y and p r e d i c a t e f o r t h e r e l i e f r e q u e s t e d h e r e i n a r e s e c t i o n s 363, 365,and 105(a) of h e Bankruptcy Code, and F e d e r a l Rules of Bankruptcy Procedure 2002, 0 0 4 ,6 0 0 6 , nd 9014.

BACKGROUND3 . On March 1 2 , 2 0 1 4 t h e P e t i t i o n D a t e ) , each of h e Debtors i l e d a p e t i t i o n f o r

r e l i e f under c h a p t e r 7 f i t l e 1 1 of h e U n i t e d S t a t e s Code. T h e r e a f t e r , t h e U n i t e d S t a t e sT r u s t e e f o r t h e Northern D i s t r i c t of l l i n o i s a p p o i n t e d C a t h e r i n e S t e e g e a s i n t e r i m c h a p t e r 7T r u s t e e .

4 . P r i o r t o t h e P e t i t i o n Date, t h e Debtors conducted b u s i n e s s a s amulti-channels p e c i a l t y r e t a i l e r of high-end photography and v i d e o equipment. The b u s i n e s s s e r v e dp r o f e s s i o n a l and amateur p h o t o g r a p h e r s t h r o u g h , a m o n g o t h e r t h i n g s , ( a) o u r t e e n b r i c k - a n d -m o r t a r r e t i l s t o r e s t h r o u g h o u t t h e U n i t e d S t a t e s , ( b ) n e-commerce w e b s i t e , and( c ) ustomer- d i r e c t s a l e s . Debtor Calumet P h o t o g r a p h i c , I n c . , was h e only o p e r a t i n g e n t i t y ,and empl oyed over 2 0 0 US- b a s e d p e r s o n n e l .

5 . S i n c e t h e P e t i t i o n Date, h e D e b t o r s ' o p e r a t i o n s have been s h u t down. S h o r t l ya f t e r t h e P e t i t i o n Date, h e T r u s t e e was c o n t a c t e d b y CalPhoto US, LLC n e n t i t y r e c e n t l yformed b y c e r t a i n former p r i n c i p a l s of h e Debtors t h e P u r c h a s e r ) , r e g a r d i n g t h e p o s s i b i l i t yof u r c h a s i n g a s s e t s a s s o c i a t e d w i t h f i v e of h e D e b t o r s ' r e t i l s t o r e s and t h e a s s u m p t i o n ofc e r t a i n of h e D e b t o r s ' l i b i l i t i e s and o b l i g a t i o n s . The T r u s t e e and t h e P u r c h a s e r engaged i ne x t e n s i v e n e g o t i a t i o n s and t h e T r u s t e e h a s a c c e p t e d t h e P u r c h a s e r ' s o f f e r , s u b j e c t t oBankruptcy Court a p p r o v a l , t o p u r c h a s e c e r t a i n a s s e t s and t o assume m a n y of h e D e b t o r s 'l i b i l i t i e s and o b l i g a t i o n s f o r Two i l l i o n E i g h t Hundred and Twenty F i v e Thousand D o l l a r s( 2,825,000) p l u s t h e assumption of e r t a i n l i b i l i t i e s and t h e d e l i v e r y a t c l o s i n g of l a i m sw a i v e r s from t h e h o l d e r s of i g h t y p e r c e n t i n a m o u n t of h e Debtors' s u p p l i e r c l a i m s ( t h e



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Purchase P r i c e ) . The T r u s t e e and t h e Purchaser have memorialized t h i s agreement i n anAsset Purchase A greem ent t h e APA ) h a t i s a t t a c h e d h e r e t o as E x h i b i t A .

SUMM RYOFRELIEFREQUESTED6. By h i s Motion, h e T r u s t e e s e e k s a p p r o v a l f o r t h e proposed s a l e of e r t a i n of h e

Debtors' a s s e t s t o t h e Purchaser under t h e terms of t h e APA and f r e e and c l e a r of l i e n s ,c l a i m s , i n t e r e s t s , c h a r g e s , and encumbrances under 3630 o f t h e Bankruptcy Code. I na d d i t i o n , t h e T r u s t e e seeks t o a s s i g n t o t h e Purchase c e r t a i n l e a s e s and e x e c u t o r y c o n t r a c t sp u r s u a n t t o 11 U.S.C. 365.

TRUSTEE'SMARKETINGEFFORTS7 . Immediately upon her appointment, t h e T r u s t e e was c o n t a c t e d b y numerous

p a r t i e s i n t e r e s t e d i n purchasing c e r t a i n of t h e Debtors' a s s e t s . S h e has p r o v i d e d i n v e n t o r yl i s t s and c o p i e s o f e a s e s t o al l p a r t i e s w h o have c o n t a c t e d h e r . She has s e r v e d a copy of h i sMotion o n a l l of h e s e p a r t i e s . She a l s o has m a d e arrangements t o allow i n t e r e s t e d p a r t i e s t oview t h e Debtors' s s e t s .

THE ROPOSEDASSETPURCHASE GREEMENT8 . The T r u s t e e and t h e Purchaser have e n t e r e d i n t o t h e APA nder which, u b j e c t t o

t h i s C o u r t ' s a p p r o v a l , t h e P u r c h a s e r , f o r t h e Purchase P r i c e , w i l l purchase t h e f o l l o w i n g a s s e t s( c o l l e c t i v e l y , t h e Assets o r t h e Purchased A s s e t s ) , o n an as i s , whereas b a s i s w i t h o u tr e p r e s e n t a t i o n s o r w a r r a n t i e s o f ny k i n d :

( i ) a l l Inventory l o c a t e d a t (a) Oak B r ook , I l l i n o i s , ( b ) Chicago (GooseI s l a n d ) , I l l i n o i s ( B l i s s S t r e e t and Cherry S t r e e t ) , (c) P h i l a d e l p h i a , P e n n s y l v a n i a , (d) S anF r a n c i s c o , C a l i f o r n i a and (e) Washington, D.C. from which t h e Debtors were c o n d u c t i n g t h eBusiness as of h e P e t i t i o n Date ( A s s u m e d Locations ) but excluding any i n v e n t o r y l o c a t e d i nt h e warehouse i n c l u d e d as p a r t o f h e Chicago (Goose I s l a n d ) , I l l i n o i s ( B l i s s S t r e e t and CherryS t r e e t ) l o c a t i o n ;

To h e e x t e n t t h e Motion and t h e terms of h e APA o n f l i c t , t h e APA o n t r o l s . Defined termsn o t d e f i n e d i n t h i s Motion s h a l l have t h e meaning s e t f o r t h i n t h e APA.

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( i i ) a l l f u r n i t u r e , f i x t u r e s and equipment ( FF&E ) o c a t e d a t t h e AssumedL o c a t i o n s and a t D e b t o r ' s Cambridge, M a s s a c h u s e t t s l o c a t i o n ; p r o v i d e d , however t h a t t h e S e l l e rmay o n t i n u e t o use t h e FF&E t t h e D e b t o r ' s Cambridge M a s s a c h u s e t t s l o c a t i o n u n t i l such t i m ea s S e l l e r completes t h e s t o r e - c l o s i n g s a l e s b e i n g conducted a t t h e Cambridge M a s s a c h u s e t t sl o c a t i o n and p r o v i d e d f u r t h e r t h a t P u r c h a s e r s h a l l remove t h e FF&E t i t s own expense fromCambridge M a s s a c h u s e t t s w i t h i n f i v e (5) u s i n e s s Days of e c e i v i n g n o t i c e from S e l l e r t o do o ;

i i i ) a l l e x t e r i o r s i g n a g e l o c a t e d a t t h e Excluded L o c a t i o n s ; p r o v i d e d , however,t h a t t h e S e l l e r may c o n t i n u e t o use such e x t e r i o r s i g n a g e u n t i l such time a s S e l l e r completes t h es t o r e - c l o s i n g s a l e s b e i n g conducted a t t h e Excluded L o c a t i o n s and p r o v i d e d f u r t h e r t h a tP u r c h a s e r s h a l l remove such e x t e r i o r s i g n a g e a t i t s own expense assuming a l l L i a b i l i t i e s i nc o n n e c t i o n t h e r e w i t h and i n a manner c o n s i s t e n t w i t h any Lease f o r such Excluded L o c a t i o n ;

( i v ) a l l Leases f o r t h e Assumed L o c a t i o n s and t h e Cambridge P a r k i n g LotLeases t h e Assu m e d L e a s e s ) , t o g e t h e r w i t h t h e D e b t o r s ' i n t e r e s t i n a l l s e c u r i t y d e p o s i t s l i s t e don Schedule 2 . 1 ( b ) ( i v ) , and a l l permanent i x t u r e s , improvements and a p p u r t e n a n c e s t h e r e t o anda s s o c i a t e d w i t h such Assumed L e a s e s ;

(v) a l l Executory C o n t r a c t s r e l a t e d t o t h e D e b t o r s ' o p e r a t i o n of h e B u s i n e s sa t t h e Assumed L o c a t i o n s ( t h e Assum e d C o n t r a c t s ) , t o g e t h e r w i t h t h e D e b t o r s ' i n t e r e s t i n a l lu t i l i t y d e p o s i t s l i s t e d on Schedule 2 . 1 ( b ) ( v ) w i t h r e s p e c t t o any of h e Assumed L o c a t i o n s ;

( v i ) a l l of h e i n t a n g i b l e p r o p e r t y of h e Debtors l i s t e d on Schedule 2 . 1 ( b ) ( v i ) ;( v i i ) (A) l l r i g h t s i n and t o I n t e l l e c t u a l P r o p e r t y r i g h t s o w ned o r l i c e n s e d by

any of h e Debtors i s t e d on Schedule 2 . 1 ( b ) ( v i i ) , t o t h e b r o a d e s t e x t e n t S e l l e r i s p e r m i t t e d by l awt o t r a n s f e r such I n t e l l e c t u a l P r o p e r t y ( t h e Purchased I n t e l l e c t u a l Property ), i n c l u d i n g ,w i t h o u t l i m i t a t i o n , hardware and s o f t w a r e r e l a t e d t h e r e t o and customer i s t s and(B) o t h e e x t e n tsuch I n t e l l e c t u a l P r o p e r t y may o t be t r a n s f e r r e d t o P u r c h a s e r , S e l l e r s h a l l be deemed t o haveg r a n t e d t o P u r c h a s e r an e x c l u s i v e , r o y a l t y f r e e r i g h t and l i c e n s e t o use t h e I n t e l l e c t u a l P r o p e r t yfrom and a f t e r t h e C l o s i n g Date, o t h e b r o a d e s t e x t e n t p e r m i t t e d by law, b u t s u b j e c t t o a non-e x c l u s i v e g r a n t of a l i c e n s e t o S e l l e r t o c o n t i n u e t o u s e (1) h e Calumet n a m e and t r a d e m a r k i nt h e conduct of e r a d m i n i s t r a t i o n of h e D e b t o r ' s Bankruptcy Cases (such n o n - e x c l u s i v e l i c e n s es h a l l e x p i r e upon t h e c l o s i n g of t h e Bankruptcy Cases) and (2) any p a t e n t s i n c l u d e d i n t h ePurchased I n t e l l e c t u a l P r o p e r t y f o r t h e s o l e p u r p o s e of s e l l i n g I n v e n t o r y a t t h e ExcludedL o c a t i o n s u n t i l t h e e a r l i e r of(A) uch time t h a t any I n v e n t o r y r e l a t i n g t o such p a t e n t s h a s beens o l d by H i l c o , and(B) h e e n t r y of h e f i n a l d e c r e e c l o s i n g t h e Bankruptcy Cases;

( v i i i ) a l l c r e d i t c a r d holdback payments and o t h e r c r e d i t s due from D e b t o r s 'c r e d i t c a r d p r o c e s s o r s l i s t e d on Schedule 2 . 1 ( b ) ( v i i i ) ;

( i x ) a l l p r e p a i d c h a r g e s and expenses s e t f o r t h on Schedule 2 . 1 ( b ) ( i x ) p a i d byS e l l e r o r any of t h e Debtors e x c l u s i v e l y i n c o n n e c t i o n w i t h o r r e l a t i n g e x c l u s i v e l y t o t h ePurchased A s s e t s ;

(x) a l l r i g h t s under i n s u r a n c e p o l i c i e s r e l a t i n g t o c l a i m s f o r l o s s e s r e l a t e de x c l u s i v e l y t o t h e Purchased A s s e t s ;



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( x i ) c o p i e s of a l l books and r e c o r d s p e r t a i n i n g t o any of t h e f o r e g o i n g( p r o v i d e d , however, h a t o r i g i n a l books and r e c o r d s w i l l be p r o v i d e d w i t h i n f i ve (5) B u s i n e s sDays f t e r e n t r y of h e f i n a l d e c r e e c l o s i n g t h e Bankruptcy C a s e s ) ;

( x i i ) a l l customer f i l e s , d a t a and documents ( i n c l u d i n g c r e d i t i n f o r m a t i o n ) ,email a d d r e s s e s , t r a n s a c t i o n h i s t o r i e s , customer h i s t o r i e s , and t h e e - m a i l system and d a t a ownedo r p o s s e s s e d by any of h e Debtors s of h e P e t i t i o n Date;

( x i i i ) a l l Permits used by S e l l e r t h a t r e l a t e t o t h e As s u m e d L o c a t i o n s , t h eB u s i n e s s o r any of h e Purchased A s s e t s , t o t h e e x t e n t a s s i g n a b l e ( t h e Assigned P e r m i t s ) ; and

(xiv) a l l g o o d w i l l a s s o c i a t e d w i t h t h e Purchased A s s e t s .9 . The APA l s o p r o v i d e s t h a t t h e P u r c h a s e r w i l l assume c e r t a i n of t h e D e b t o r s '

l i a b i l i t i e s i n c l u d i n g :

( i ) a l l L i a b i l i t i e s of e l l e r o r any of h e Debtors under t h e Assumed L e a s e sand As s u m e d C o n t r a c t s a r i s i n g a f t e r t h e C l o s i n g Date, i n c l u d i n g any and a l lb e n e f i t s and burdens of p o s t- C l o s i n g a d j u s t m e n t s under any As s u m e d C o n t r a c t(as d e n t i f i e d on Schedule 2 . 5 of h e A PA);( i i ) a l l Cure C o s t s and C a r r y i n g C o s t s , a s d e f i n e d i n t h e APA e l a t e d t o t h eAs s u m e d Leases and Assumed C o n t r a c t s ; i i i ) a l l employer o b l i g a t i o n s of e l l e r o r any of h e Debtors t o Employees a tany of t h e As s u m e d L o c a t i o n s w h o r e t u r n f o r employment a t t h e AssumedL o c a t i o n s ( t h e A s s u m e d E m p l o y e e i a b i l i t i e s ) ;( i v ) a l l o b l i g a t i o n s of e l l e r o r any of h e Debtors o customers of h e B u s i n e s sr e l a t i n g t o customer d e p o s i t s , p r o d u c t r e p a i r s , g i f t c a r d s and w a r r a n t y c l a i m s ( t h eA s s u m e d C u s t o m e r i a b i l i t i e s . )

1 0 . As a c o n d i t i o n of t h e c l o s i n g , t h e P u r c h a s e r i n s i s t e d on, a m o n g o t h e r t h i n g s ,p r o v i s i o n s i n t h e F i n a l S a l e Order t o e s t a b l i s h t h a t t h e P u r c h a s e r w i l l n o t c o n s t i t u t e as u c c e s s o r - i n - i n t e r e s t t o t h e D e b t o r s .

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RELIEFREQUESTEDI . APPROVAL OF THE SECTION 363 SALE AND SECTION 365 ASSUMPTION

ANDASSIGNMENT

A. The Asset Sale s In The Best n t e r e s t s Of he Debtors s t a t e s1 1 . S e c t i o n 3 6 3 ( b ) ( 1 ) of h e Bankruptcy Code p r o v i d e s t h a t a t r u s t e e , a f t e r n o t i c e

and a e a r i n g , m a y s e , s e l l o r l e a s e , o t h e r t h a n i n t h e o r d i n a r y c o u r s e of u s i n e s s , p r o p e r t y oft h e e s t a t e .

1 2 . A s a l e of t h e A s s e t s s h o u l d be a u t h o r i z e d p u r s u a n t t o s e c t i o n 363 of t h eBankruptcy Code i f a sound b u s i n e s s p u r p o s e e x i s t s f o r doing s o . See . g . Meyers . Martin( I n r e M a r t i n ) , 91 F.3d 389, 395 (3d C i r . 1996) c i t i n g F u l t o n S t a t e B a n k . S c h i p p e r ( I n r eS c h i p p e r ) , 933 F.2d 513, 515 7 t h C i r . 1 9 9 1 ) ) ; I n r e A b b o t t s D a i N i e s o f e n n s y l v a n i a , I n c . ,788 F . 2 d 143 (3d C i r . 1 9 8 6 ) ; Stephens n d u s . , I n c . v . McC l u n g , 789 F . 2 d 386, 390 6 t h C i r .1 9 8 6 ) ; I n r e L i o n e l C o N p . , 72 2 F.2d 1063 (2d C i r . 1 9 8 3 ) ; I n r e T i t u s v i l l e Country Club, 128B.R. 396 (W.D. Pa. 1 9 9 1 ) ; In r e Delaware Hudson Railway C o . , 124 B.R. 1 6 9 , 176 (D.D e l . 1 9 9 1 ) .

1 3 . The r u s t e e has proposed t h e s a l e of h e A s s e t s a f t e r thorough c o n s i d e r a t i o n of l lv i a b l e a l t e r n a t i v e s , and has concluded t h a t t h e s a l e i s s u p p o r t e d by a number of soundb u s i n e s s r e a s o n s . The n e c e s s i t y of h e proposed s a l e and t h e assumption and a s s i g n m e n t ofc e r t a i n l e a s e s and c o n t r a c t s p u r s u a n t t o s e c t i o n 365 stems from t h e c u r r e n t s t a t e of t h eD e b t o r s ' b u s i n e s s e s . The Debtors a r e n o t c u r r e n t l y o p e r a t i n g and h e v a l u e of h e i r a s s e t s andt h e a b i l i t y t o c o n t i n u e t h e i r o p e r a t i o n s a s a going concern i k e l y w i l l be d r a m a t i c a l l y i m p a c t e di f a s a l e i s n o t conducted i n t h e n e a r f u t u r e . See Tempo Technology, 2 0 2 B.R. a t 369-70(approving a a l e of l l of h e d e b t o r ' s a s s e t s , w i t h i n a month a f t e r t h e p e t i t i o n d a t e , where h ed e b t o r f a c e d a cash s h o r t f a l l , o p e r a t e d i n a n n d u s t r y where h e r e were few p o t e n t i a l p r o p o s e d

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P u r c h a s e r , and a n t i c i p a t e d c o n t i n u i n g l o s s e s and a d e c l i n e i n v a l u e of h e b a n k r u p t c y e s t a t e s ) ;T i t u s v i l l e CountNy Club, 128 B.R. a t 400 ( g r a n t i n g an e x p e d i t e d h e a r i n g on a m o t i o n t oa p p r o v e a s a l e a s a e s u l t of d e t e r i o r a t i o n of h e d e b t o r ' s a s s e t s ) .

1 4 . The T r u s t e e b e l i e v e s t h a t , w i t h o u t s u c h a s a l e of h e D e b t o r s ' A s s e t s , t h e T r u s t e ew i l l n o t be a b l e t o maximize v a l u e t o c r e d i t o r s . H e r e , t h e T r u s t e e b e l i e v e s t h a t t h e APAr e p r e s e n t s a f a i r v a l u e f o r t h e A s s e t s . The APA s t h e p r o d u c t of arms- l e n g t h , good f a i t hn e g o t i a t i o n s , i n which t h e T r u s t e e b a r g a i n e d f o r t h e m a x i m u m p o s s i b l e p r i c e f o r t h e A s s e t s .The T r u s t e e does n o t b e l i e v e s h e c o u l d o b t a i n a m a t e r i a l l y b e t t e r o f f e r from a n o t h e r b u y e r andt h e r e f o r e b e l i e v e s t h a t t h e s a l e of h e A s s e t s t o t h e P u r c h a s e r on t e r m s c o n s i s t e n t w i t h t h o s es e t f o r t h i n t h e APA s i n t h e b e s t i n t e r e s t s of h e D e b t o r s , t h e i r employees, h e i r c u s t o m e r s ,t h e i r v e n d o r s , h e i r e s t a t e s and t h e i r c r e d i t o r s .B . The Asset S a l e S a t i s f i e s The Requirements Of e c t i o n 3 6 3 ( f ) of t h e BankruptcyC o d e For A S a l e Free And Clear of L i e n s , Claims, I n t e r e s t s , Charges, a n d

Encumbrances.1 5 . Except f o r t h o s e l i b i l i t i e s e x p r e s s l y assumed i n t h e APA h e P u r c h a s e r a r e

b u y i n g t h e A s s e t s f r e e and c l e a r of l l l i e n s , c l a i m s , i n t e r e s t s , c h a r g e s , and e n c u m b r a n c e s .1 6 . S e c t i o n 3630 f h e Bankruptcy Code p r o v i d e s :

The t r u s t e e m a y e l l p r o p e r t y u n d e r s u b s e c t i o n b) r c) oft h i s s e c t i o n f r e e and c l e a r of any i n t e r e s t i n such p r o p e r t y of ane n t i t y o t h e r t h a n t h e e s t a t e , o n l y i f

1) a p p l i c a b l e n o n b a n k r u p t c y law p e r m i t s s a l e of suchp r o p e r t y f r e e and c l e a r of such i n t e r e s t ;

2) uch e n t i t y c o n s e n t s ;3) such i n t e r e s t i s a l i e n and t h e p r i c e a t which such

p r o p e r t y i s t o be s o l d i s g r e a t e r t h a n t h e a g g r e g a t e v a l u e of l l l i e n son such p r o p e r t y ;

4) uch i n t e r e s t i s i n a bona i d e d i s p u t e ; o r5) such e n t i t y c o u l d be c o m p e l l e d , i n a l e g a l o r e q u i t a b l e

p r o c e e d i n g , o a c c e p t a money s a t i s f a c t i o n of u c h i n t e r e s t .

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1 1 U.S.C. 36301 7 . S e c t i o n 3630 of t h e Bankruptcy Code i s d r a f t e d i n t h e d i s j u n c t i v e . Thus,

s a t i s f a c t i o n of any of h e r e q u i r e m e n t s enumerated t h e r e i n w i l l s u f f i c e t o w a r r a n t t h e T r u s t e e ' ss a l e of t h e A s s e t s f r e e and c l e a r of l l l i e n s , c l a i m s , r i g h t s , i n t e r e s t s , and encumbrances a sp r o v i d e d i n t h e A s s e t Purchase Agreement c o l l e c t i v e l y , t h e I n t e r e s t s ) , e x c e p t w i t h r e s p e c tt o such I n t e r e s t s a s a r e assumed p u r s u a n t t o t h e Asset Purchase Agreement. See C i t i c o r pHomeowners S e r v i c e s , I n c . v . E l l i o t , 94 B.R. 343, 345 (E.D. Pa. 1 9 8 8 ) . The T r u s t e e s u b m i t st h a t each I n t e r e s t t h a t i s n o t assumed p u r s u a n t t o t h e Asset Purchase Agreement s a t i s f i e s a tl e a s t one of h e f i v e c o n d i t i o n s of 3630 f h e Bankruptcy Code, and t h a t any such I n t e r e s tw i l l be a d e q u a t e l y p r o t e c t e d by e i t h e r b e i n g p a i d i n f u l l a t t h e time of l o s i n g , o r by h a v i n g i ta t t a c h t o t h e n e t p r o c e e d s of h e s a l e , s u b j e c t t o a n y c l a i m s and d e f e n s e s t h e D e b t o r s ' e s t a t e sm a y p o s s e s s w i t h r e s p e c t t h e r e t o . The T r u s t e e a c c o r d i n g l y r e q u e s t s t h a t t h e A s s e t s bet r a n s f e r r e d t o t h e P u r c h a s e r f r e e and c l e a r of l l I n t e r e s t s (except f o r t h e I n t e r e s t s t h a t a r eassumed), i t h such I n t e r e s t s t o a t t a c h t o t h e p r o c e e d s of h e s a l e .

1 8 . The APA l s o c o n t e m p l a t e s t h a t t h e P u r c h a s e r s h a l l n o t be l i a b l e f o r any of h eD e b t o r s ' l i a b i l i t i e s a s a s u c c e s s o r t o t h e D e b t o r s ' b u s i n e s s e s o r o t h e r w i s e ( t h e ExcludedL i a b i l i ti e s ) , e x c e p t w i t h r e s p e c t t o l i a b i l i t i e s e x p r e s s l y assumed i n t h e APA y t h e P u r c h a s e r .

1 9 . S e c t i o n 3630 f t h e Bankruptcy Code p r o v i d e s f o r t h e s a l e of a s s e t s f r e e andc l e a r of any i n t e r e s t s . The Seventh C i r c u i t has h e l d t h a t t h e term a n y i n t e r e s t s h o u l d beg i v e n a broad i n t e r p r e t a t i o n and i s n o t l i m i t e d t o i n rem i n t e r e s t s i n p r o p e r t y P r e c i s i o nI n d u s . , I n c . v . Q u a l i t e c h S t e e l S B Q , LLC, 327 F . 3 d 537, 545 ( 7 t h C i r . 2 0 0 3 ) . L i k e w i s e ,numerous c o u r t s have h e l d t h a t a proposed p u r c h a s e r of a d e b t o r ' s a s s e t s p u r s u a n t t o a e c t i o n363 s a l e t a k e s f r e e from s u c c e s s o r l i a b i l i t y r e s u l t i n g from p r e - e x i s t i n g c l a i m s . See I n r e TNansWorld A i r l i n e s , I n c . , 322 F.3d 283, 292-93 (3d C i r . 2003); Douglas v . Stamco, 363 Fed.

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App x 100, 103 (2d C i r . 2010); n r e A l l Am. Of shburn, n c . , 56 B.R. 186 Bankr. N.D. Ga.1 9 8 6 ) .

C. Authorization Of ssumpti o n And Assignment Of xecutory Contracts And e a s e s .20. A s e q u i r e d b y h e APA, h e T r u s t e e r e q u e s t s a p p r o v a l , under 1 1 U.S.C. 365, o f

t h e assumption and assignment o f c e r t a i n e x e c u t o r y c o n t r a c t s and l e a s e s t o t h e P u r c h a s e r .The T r u s t e e f u r t h e r r e q u e s t s t h a t t h e o r d e r a p p r o v i n g such s a l e p r o v i d e t h a t t h e assumedc o n t r a c t s w i l l be t r a n s f e r r e d t o , and remain i n f u l l f o r c e and e f f e c t f o r t h e b e n e f i t o f t h eP u r c h a s e r n o t w i t h s t a n d i n g a n y p r o v i s i o n s i n t h e assumed c o n t r a c t s , i n c l u d i n g t h o s e d e s c r i b e di n s e c t i o n s 3 6 5 ( b ) ( 2 ) and (~(1) and (3) o f t h e Bankruptcy Code, t h a t p r o h i b i t sucha s s i g n m e n t . The o n t r a c t s and l e a s e s t h e T r u s t e e s e e k s t o assume a r e i d e n t i f i e d i n t h e APA.

21. S e c t i o n 3650 f h e Bankruptcy Code p r o v i d e s , i n p e r t i n e n t p a r t , t h a t :The r u s t e e may a s s i g n an e x e c u t o r y c o n t r a c t o r u n e x p i r e d

l e a s e of h e d e b t o r only f A) t h e t r u s t e e assumes such c o n t r a c t o r l e a s e i n

accordance w i t h t h e p r o v i s i o n s o f h i s s e c t i o n ; andB) a d e q u a t e a s s u r a n c e o f f u t u r e performance b y t h e

a s s i g n e e o f uch c o n t r a c t o r l e a s e i s p r o v i d e d , whether o r n o t t h e r ehas been a d e f a u l t i n such c o n t r a c t o r l e a s e .

1 1 U.S.C. 3650(2). Under s e c t i o n 365(a) o f h e Bankruptcy Code, a t r u s t e e s u b j e c t t o t h ec o u r t ' s a p p r o v a l , may assume o r r e j e c t any e x e c u t o r y c o n t r a c t o r u n e x p i r e d l e a s e o f h e d e b t o r .1 1 U.S.C. 6 5 ( a ) . S e c t i o n 3 6 5 ( b ) ( 1 ) o f h e Bankruptcy Code, n t u r n , c o d i f i e s t h e r e q u i r e m e n t sf o r assuming a n u n e x p i r e d l e a s e o r e x e c u t o r y c o n t r a c t of a d e b t o r , p r o v i d i n g t h a t :

( b ) ( 1 ) I f t h e r e has been a e f a u l t i n a n e x e c u t o r y c o n t r a c to r u n e x p i r e d l e a s e o f h e d e b t o r , t h e t r u s t e e may n o t assume suchc o n t r a c t o r l e a s e u n l e s s , a t t h e time o f ssumption o f uch c o n t r a c to r l e a s e , t h e t r u s t e e - -

A) u r e s , o r p r o v i d e s a d e q u a t e a s s u r a n c e t h a t t h e t r u s t e ew i l l promptly u r e , such d e f a u l t ;

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B) ompensates, r p r o v i d e s a d e q u a t e a s s u r a n c e t h a t t h et r u s t e e w i l l promptly compensate, a p a r t y o t h e r t h a n t h e d e b t o r t osuch c o n t r a c t o r l e a s e , o r any a c t u a l p e c u n i a r y l o s s t o such p a r t yr e s u l t i n g from such d e f a u l t ; a nd

C) r o v i d e s a d e q u a t e a s s u r a n c e o f u t u r e performanceunder such c o n t r a c t o r l e a s e .

1 1 U.S.C. 6 5 ( b ) ( 1 ) .22. Here, t h e assumption a n d assignment o f t h e a s s u m e d c o n t r a c t s s e t f o r t h i n t h e

APA s a n e c e s s a r y p a r t o f t h e d e a l t h a t t h e T r u s t e e h a s s t r u c k w i t h t h e P u r c h a s e r . Th eT r u s t e e b e l i e v e s t h a t a l l t h e r e q u i r e m e n t s f o r t h e assumption o f t h e s p e c i f i e d c o n t r a c t s an dl e a s e s a r e m e t a s t h e P u r c h a s e r a r e o b l i g a t e d t o pay and c u r e c o s t s a s s o c i a t e d w i t h sucha s s u m p t i o n . F u r t h e r , based o n t h e i n f o r m a t i o n r e c e i v e d b y t h e T r u s t e e f rom t h e P u r c h a s e r ,t h e T r u s t e e b e l i e v e s t h a t t h e P u r c h a s e r c a n p r o v i d e a d e q u a t e a s s u r a n c e o f t h e i r a b i l i t y t operform under t h e a s s u m e c o n t r a c t s a n d l e a s e s a n d w i l l b e a b l e t o p r o v i d e t h i s e v i d e n c e t o t h eCourt i f so r e q u i r e d . C o n s e q u e n t l y , assumption and assignment o f t h e assumed c o n t r a c t sa p p r o p r i a t e under t h e c i r c u m s t a n c e s .

D. G o o d Faith U n d e r S e c t i o n 363(M)Of h e Bankru ptcy C o d e .23. S e c t i o n 363(m) f h e Bankruptcy C o d e p r o v i d e s :

Th e r e v e r s a l o r m o d i f i c a t i o n o n a p p e a l o f a n a u t h o r i z a t i o n unders u b s e c t i o n (b) r (c) of t h i s s e c t i o n o f a s a l e o r l e a s e o f p r o p e r t ydoes n o t a f f e c t t h e v a l i d i t y o f a s a l e o r l e a s e under sucha u t h o r i z a t i o n t o a n e n t i t y t h a t p u r c h a s e d o r l e a s e d such p r o p e r t y i ng o o d f a i t h , whether o r n o t such e n t i t y k n e w o f h e p e n de n c y o f h ea p p e a l , u n l e s s such a u t h o r i z a t i o n and such s a l e o r l e a s e w e r es t a y e d pending a p p e a l .

11 U.S.C. 363(m). While t h e Bankruptcy C o d e does n o t d e f i n e g o o d f a i t h , t h e SeventhC i r c u i t has h e l d t h a t g o o d f a i t h i s p r e s e n t u n l e s s a p a r t y c a n s h o w f r a u d , c o l l u s i o n betweent h e p u r c h a s e and o t h e r b i d d e r s o r t h e t r u s t e e , o r a n a t t e m p t t o t a k e g r o s s l y u n f a i r a d v a n t a g e o fo t h e r b i d d e r s . I n r e V e t t e r C o r p . , 724 F.2d 52, 56 7 `hC i r . 1 9 8 3 ) . Th e APA s a n i n t e n s e l y-

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n e g o t i a t e d , arm s- l e n g t h t r a n s a c t i o n , i n which t h e Purchaser have, a t a l l t i m e s , a c t e d i n goodf a i t h . The T r u s t e e thus r e q u e s t s t h a t t h e Court m a k e a i n d i n g t h a t t h e Purchaser have p u r c h a s e dt h e A s s e t s , and have taken by assignment t h e A ss u m e d C o n t r a c t s and A ss u m e d L i a b i l i t i e s , i ngood a i t h w i t h i n t h e meaning of e c t i o n 363(m) f h e Bankruptcy Code.I I . Notice

24. The T r u s t e e has given 21 days n o t i c e of h e h e a r i n g on t h i s Motion t o a l l c r e d i t o r sl i s t e d on t h e Debtors r e d i t o r m a t r i x i n t h e form of x h i b i t B e r e t o . I n a d d i t i o n , t h e T r u s t e ehas mailed a copy of h i s Motion t o (a) h e Debtors l a n d l o r d s ,(b) l l of h e Debtors knownt a x i n g a u t h o r i t i e s , (c) a l l known h o l d e r s of l i e n s a g a i n s t t h e Debtors a s s e t s , (d)c o u n t e r p a r t i e s t o t h e c o n t r a c t s t h a t t h e T r u s t e e proposes t o a s s i g n t o t h e P u r c h a s e r , (e)p a r t i e s who a v e c o n t a c t e d t h e T r u s t e e and e x p r e s s e d an i n t e r e s t i n buying t h e Debtors s s e t sand ~ l l p a r t i e s t h a t have r e q u e s t e d t o r e c e i v e n o t i c e . The T r u s t e e b e l i e v e s t h i s n o t i c e i ss u f f i c i e n t under t h e circumstances and s h o u l d be approved under Bankruptcy Ru le 2 0 0 2 a ) 2 ) .

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WHEREFORE, h e T r u s t e e r e s p e c t f u l l y r e q u e s t s t h a t t h e Court e n t e r an o r d e r i ns u b s t a n t i a l l y t h e form a t t a c h e d h e r e t o and g r a n t i n g such o t h e r and f u r t h e r r e l i e f a s s j u s t andp r o p e r .

C a t h e r i n e S t e e g e 01683529M e l i s s a M. o o t 62882466)Landon S . R a i f o r d 6297473)JENNER BLOCK, LP353 N. l a r k S t r e e tChicago, l l i n o i s 60654-3456PH: 312) 23-2952FAX: 312) 840-7352Dated: Apri17, 2014

CATHERINESTEEGE, o t i n d i v i d u a l l y b u t a si n t e r i m c h a p t e r 7 r u s t e e f o r t h e b a n k r u p t c y e s t a t eof each of h e above- c a p t i o n e d d e b t o r s .

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