The document is an emergency motion filed by Crystal Cathedral Ministries, a nonprofit organization that has filed for Chapter 11 bankruptcy. The motion requests that the court (1) prohibit utility providers from altering or discontinuing service, (2) deem utilities adequately assured of future payment, and (3) establish procedures for determining adequate assurance of utilities. The motion states that uninterrupted utility service is essential for Crystal Cathedral Ministries to continue operating during its bankruptcy case, and any interruption would severely disrupt its business operations.
The document is an emergency motion filed by Crystal Cathedral Ministries, a nonprofit organization that has filed for Chapter 11 bankruptcy. The motion requests that the court (1) prohibit utility providers from altering or discontinuing service, (2) deem utilities adequately assured of future payment, and (3) establish procedures for determining adequate assurance of utilities. The motion states that uninterrupted utility service is essential for Crystal Cathedral Ministries to continue operating during its bankruptcy case, and any interruption would severely disrupt its business operations.
The document is an emergency motion filed by Crystal Cathedral Ministries, a nonprofit organization that has filed for Chapter 11 bankruptcy. The motion requests that the court (1) prohibit utility providers from altering or discontinuing service, (2) deem utilities adequately assured of future payment, and (3) establish procedures for determining adequate assurance of utilities. The motion states that uninterrupted utility service is essential for Crystal Cathedral Ministries to continue operating during its bankruptcy case, and any interruption would severely disrupt its business operations.
The document is an emergency motion filed by Crystal Cathedral Ministries, a nonprofit organization that has filed for Chapter 11 bankruptcy. The motion requests that the court (1) prohibit utility providers from altering or discontinuing service, (2) deem utilities adequately assured of future payment, and (3) establish procedures for determining adequate assurance of utilities. The motion states that uninterrupted utility service is essential for Crystal Cathedral Ministries to continue operating during its bankruptcy case, and any interruption would severely disrupt its business operations.
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Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc
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I 2 3 4 s 6 7 8 9 10 11 12 13 14 IS MARC J. WINTHROP- State Barl\o. 63218 m winlhrup\a) winthrupc;u uc;hut.com KAVITAGUPTA-StateBarNo. 138505 kgupta@winthropcouchot.com WI.'ITHROP COUCHOT PROFESSIONAL CORPORATION 660 Newport Center Drive, Suite 400 Newport Beach, CA 92660 Telephone: (949) 720-4100 Facsimile: (949) 720-4111 [Proposed] General Insolvency Connsel for Debtor and Debtor-in-Possession UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA SANTA ANA DIVISION In re: Case No. 8:10-bk-24771-RK CRYSTAL CATHEDRAL MINISTRIES, Chapter 11 Proceeding 16 a California non-profit corporation, 17 18 19 20 21 22 23 24 25 26 27 28 Debtor and Debtor-in-Possession. DEBTOR'S EMERGENCY .MOTION FOR ORDER (A) PROHIBITING UTILITY PROVIDERS FROM ALTERING, REFUSING OR DISCONTINUING SERVICE, (B) DEEMING UTILITIES ADEQUATELY ASSURED OF FUTURE PERFORMANCE, AND (C) ESTABLISHING PROCEDURES FOR DETERMINING ADEQUATE ASSURANCE OF PAYMENT UNDER SECTION 366 OF THE BANKRUPTCY CODE; AND MEMORANDL'M OF POINTS AND AUTHORITIES [DECLARATION OF FRED W. SOUTHARD IN SUPPORT THEREOF FILED CONCURRENTLY HEREWITH] DATE: October 20,2010 TIME: 3:00p.m. PLACE: Courtroom 5D 411 W. Fourth Street Santa Ana, CA 92701 MAIN DOCS-# 15D8D5-v2-Crystal_ Utili!)'_ Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 2 of 15 Crystal Cathedral Ministries, a California nonprofit corporation, the debtor and debtor-in- 2 possession herein ("Debtor"), hereby moves ("Motion") the Court, on an emergency for an 3 order granting the allowing relief: 4 5 6 (A) (B) (C) Prohibiting utilities from altering, refusing or discontinuing service; Deeming utilities adequately assuretl of future performance; and Establishing procedures for determining adequate assurance of future payment. 7 The Debtor uses gas, water, electric, telecommunications and other services provided by 8 various utility companies, The continued and uninterrupted utility service and the granting of the 9 other relief requested herein are necessary to ensure the continued efficient operation of the 10 Debtor's business, Any interruption in utility service would disrupt the Debtor's operations and 11 impair the Debtor's ability to reorganize its financial affairs. 12 This Motion is made on the basis of the concurrently filed Declaration of Fred W. 13 Southard (the "Declaration"), the within memorandum of points and authorities, and on such 14 other evidence as may be presented to the Court prior to or at the hearing on this Motion. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DATED: October 19, 2010 WINTHROP COUCHOT PROFESSIONAL CORPORATIO.'\' By :_""'/"'s,_/ Marc J. Winthrop Kavita Gupta [Proposed] General Insolvency Counsel for Debtor and Debtor-in-Possession -2- MAINDOCS4l50805-v 2-Crystal _Utility_ Mol icn.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 3 of 15 MEMORA:\TDUM OF POINTS AND AUTHORITIES 2 L 3 SCMMARY OF MOTION AND NEED 4 FOR EMERGENCY RELIEF 5 In the ordinary course of business, the Debtor uses gas, water, electric, telecommunications 6 and other services provided by various utility companies (collectively, the "Utility Providers"). 7 The continued and uninterrupted utility service is essential to the Debtor's ability to sustain its 8 operations during its Chapter 11 case. Any interruption of utility service would severely disrupt 9 the Debtor's business operations. Prior to the Petition date, the Debtor generally paid the Utility 10 Providers' bills consistently and on a regular basis. Based on its prior payment history, the Debtor 11 estimates that its average monthly payments to its Utility Providers are approximately $105,000. 12 To continue day-to-day operations in the most cost-effective manner, the Debtor must 13 ensure that there is no interruption of utility services. Since the Debtor cannot continue its 14 business operations without utility services, it is critical that the Debtor obtain emergency 15 authorization for the relief requesteu herein anu further relief as is just anu appropriate under the 16 circumstances in this case. 17 IL 18 STATEMENT OF FACTS 19 A. The Debtor. 20 The Reverend Dr. Robert H. Schuller and his wife, Arvella, founded the Debtor in 1955. 21 At that time, it consisted of a single church, known as Garden Grove Community Church, which 22 held its services in space rented from the Orange Drive-In Theatre. The church moved to its 23 current location in Garden Grove, California in 1961, occupying a new sanctuary designed by 24 architect Richard Neutra. The campus has grown to include buildings designed by noted architects 25 such as Philip Johnson and Richard Meier. 26 The Debtor produces The Hour of Power, which is shown throughout the world and is 27 North America's longest running televised church service. Its message of"possibility thinking" is 28 also supported through its many facets, including, inter alia: (1) Pastors Sheila Schuller Coleman -3- :MAJNDOCS..fl-150805-v2-Crystal_ Utility __Moticn_DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 4 of 15 and Dante Gebel delivery of messages of hope each Sunday. Dr. Schuller, who is 84, is the 2 featured speaker once per month; (2) providing meals for the homeless every Monday; (3) 3 conducting weekly youth groups; and (4) hosting a number of weekly self-help programs. The 4 Debtor has approximately 190 full-time and part-time employees who support its many facets. 5 B. Events Precipitating Chapter 11 Filing. 6 Over the last few years, the Debtor's leadership has gone through several changes as the 7 ministry has endeavored to transition from its founders to the next generation who will carry the 8 mission of the ministry forward. Robert A. Schuller became Senior Pastor in 2006. He ultimately 9 resigned and Dr. Sheila Schuller Coleman became the Senior Pastor in July of2009. The period I 0 of unsettled leadership caused some in the congregation and viewing audience to leave the 11 ministry, resulting in reduced revenue for an organization that exists primarily on donations. 12 However, the greatest impact on the Debtor's revenues came from the severe downturn in the 13 national economy, which has had a drastic impact on donations to the Debtor and to charitable 14 giving in general. Donations were dov.n approximately 24% in 2009 alone. 15 Since Dr. Coleman has taken over as Senior Pastor, she has managed to restore confidence 16 and enthusiasm in the ministry, which has halted the decline and produced a gradual increase in 17 both attendees and viewers. Even though the Debtor drastically cut expenses, the decline in 18 donations and other revenue was so severe that the benefits of these reductions could not be 19 recognized quickly enough and the Debtor's level of debt, both secured and unsecured, increased. 20 Ultimately, the Debtor decided to address the growing amount of debt by convening a general 21 meeting of creditors under the auspices of Credit Managers Association of CaJifornia. The meeting 22 was well attended and resulted in a voluntary 90-day moratorium on debt collection activities, 23 which was almost universally observed. Due to the need to have reliable financial information on 24 which to base an out of court repayment plan, the Unofficial Creditors Conunittee ("Conunittee") 25 granted the Debtor a 90 day extension of the moratorium. Negotiations were well underway 26 between the Debtor and Committee when creditors sought and obtained writs of attachment and a 27 number of other lawsuits were filed against the Debtor. The negotiations between the Debtor and 28 the Committee stalled due to concern over the cash flow projections and financial repons. Given -4- MAINDOCS-t.: 150805-v Utility_ Mmion.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 5 of 15 I these circumstances, the Committee decided to allow the moratorium to expire on October 9, 2010 2 and made a demand for payment. Cumulatively, these circumstances then forced the Debtor to file 3 the present Chapter ll proceeding on October 18, 20 lO in order to obtain a breathing spell within 4 which to address the claims of all creditors on a fair, equitable and uniform basis. 5 The Debtor bas worked very bard to reduce overhead and expenses and to identify and 6 evaluate opportunities to improve profitability. In particular, it bas worked diligently to develop a 7 repayment plan for its creditors. The Debtor will continue these efforts during this Chapter II 8 case, including its ongoing negotiations with the Committee with the view towards promptly filing 9 a plan of reorganization and the pursuit of a speedy exit from Chapter II. 10 c. The Debtor's Financial Performance. II The following is a summary of the Debtor's financial performance over the last 12 three years: 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6/30/2010 6/30/2009 6/30/2008 Revenue $25,264,954 $18,896,238 $26,686,756 Net Income (Loss) ($3,050,642) ($6,590,436) ($7,179,726) D. Proposed Relief Regarding Debtor's Utilitv Providers. In the ordinary course of business, the Debtor uses gas, water, electric, telecommunications and other services provided by the Utility Providers. The continued and uninterrupted provision of utility services is essential to the Debtor's ability to sustain its operations during its Chapter II case. Any interruption of utility services would severely disrupt the Debtor's business operations. Prior to the petition date, the Debtor generally paid the Utility Providers' bills consistently and on a regular basis. The Debtor estimates that its average monthly payments to the Utility Providers are approximately$! 05,000. By this Motion, pursuant to sections I 05(a) and 366 of the Bankruptcy Code, the Debtor seeks entry of an emergency order by this Court: (a) prohibiting the Utility Providers from altering, refusing or discontinuing service; (b) deeming Utility Providers adequately assured of future performance; and (c) establishing procedures for determining adequate assurance of future payment. -5- MAINDOCS-# 150805-v 2 -Crystal_ Utilil)' _ Molwn.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 6 of 15 To provide adequate assurance of payment for future services to its Utility Providers, the 2 Debtor proposes to deposit 50% of the Debtor's estimated cost of monthly utility consumption-- 3 $52,500 --into an interest-bearing, newly-created segregated account (the "Utility Deposit 4 Account"). This payment will be made within 30 days after the entry of an Order granting this 5 Motion for the purpose of providing each Utility Company that is not cunently holding a deposit 6 with adequate assurance of payment of its post-petition date services to the Debtor. 7 In addition, the Debtor seeks to establish reasonable procedures (the "Procedures") by 8 which Utility Providers may request additional adequate assurance of future payment, in the event 9 that Utility Providers believe that the Utility Deposit Account does not provide them with 10 satisfactory adequate assurances. Snch Procedures would provide that: II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
absent further order of this Court and except as otherwise provided herein, the Utility Providers may not alter, refuse or discontinue service to, or discriminate against, the Debtor on accatmt of the commencement of this Chapter 11 case or any unpaid pre-petition charges, or request payment of a deposit or receipt of other security in connection with any unpaid pre-petition charges; the Debtor will serve the Motion and an order granting the Motion on an interim basis, if granted by the Court, via first-class mail, within three (3) business days after the date that the order is entered by the Court, on all Utility Providers; if any Utility Provider that may have been omitted, the Debtor shall have the right to supplement such list of Utility Providers and shall promptly provide notice of the order upon learning of such Utility Provider; a Utility Provider may request additional assurance of payment within thirty (30) days after the Petition date (an "Additional Assurance Request") by submitting an Additional Assurance Request to (i) Winthrop Couchot, P.C., 660 Newport Center Drive, Suite 400, Nev.port Beach, California 92660, Attn: P.J. \,l!arksbury; and (ii) Crystal Cathedral Ministries, 13280 Chapman Avenue, Garden Grove, California 92840, Attn: Fred W. Southard; -6- MAJNDOCS-# I Utility_ Motion ,DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 7 of 15 2 3 4 5 6 7 8 9 10 II 12
any Additional Assurance Request must (i) be made in writing and (ii) include a summary of the Debtor's payment history relevant to the affected account(s): if a Utility Provider makes a timely Additional Assurance Request that the Debtor believes is reasonable, then the Debtor shall be authorized in its sole discretion to comply with such request without further order of the Court; if the Dehtor believes the Additional Assurance Request is unreasonable, the Debtor will schedule a hearing to determine if additional assurance to such Utility Provider is necessary (the "Detem1ination Hearing"); pending resolution of that issue at any such Determination Hearing, any Utility Provider making an Additional Assurance Request shall be prohibited from altering, refusing or discontinuing service to the Debtor; and a Utility Provider shall be deemed to have adequate assurance of payment unless 13 and until a future order of this Court is entered requiring further adequate assurance 14 of payment 15 Although the Debtor believes that its list of Utility Providers is a complete list, the Debtor 16 reserves the right, without further order of the Court, to supplement the list if any Utility Provider 17 has been inadvertently omitted, Ifthc Debtor supplements the list subsequent to the filing of this 18 Motion, the Debtor will promptly serve a copy of this Motion, and the signed Order, on any Utility 19 Provider that is added to the list by such a supplement Such an added Utility Provider shall have 20 thirty (30) days from the date of service of this Motion and the order to make an Additional 21 Assurance RequesL If such an Additional Assurance Request is made, the Debtor shall abide by 22 the procedures set forth above, as applicable, Pending resolution of any Determination Hearing 23 relating to an Additional Assurance Request, the Debtor may seek an order prohibiting any such 24 Utility Provider from altering, refusing or discontinuing utility services to the DebtoL 25 II 26 27 28 -7- MATNDOCS-i'.' J _Utility_ Mol10n.UOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 8 of 15 I Ill. 2 BASIS FOR RELIEF UNDER SECTION 366 OF 3 THE BANKRUPTCY CODR 4 Section 366(a) of the Bankruptcy Code protects a debtor against the immediate termination 5 of utility services after it files for bankruptcy. Pmsuant to this section, a utility may not, during the 6 first twenty (20) days of the case, alter, refuse, or discontinue services to a debtor in a Chapter l l 7 case solely because of unpaid pre-petition amounts. However, the utility may subsequently do so 8 unless the debtor (as the Debtor is doing pursuant to this Motion) furnishes "adequate assurance" 9 of payment, in the form of a deposit or otherwise, for post-petition services in a form "satisfactory" I 0 to the utility within 30 days of the petition date.' II Prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act 12 of 2005, courts, commentators, and legislative history had all confirmed that section 366 does not 13 require, in every case, that the debtor provide a deposit or other security to its utilities as adequate 14 assurance of payment. In Virginia Electric & Power Co. v. Caldor, Inc., 117 F .3d 646, 648-49 15 (2d Cir. 1997), the United States Court of Appeals for the Second Circuit affirmed the bankruptcy 16 court's ruling that the debtor's pre-petition payment history, its post-petition liquidity, and the 17 administrative expenses afforded post-petition invoices constituted adequate assurance of future 18 performance. See also In re Pacific Gas & Elec. Co., 271 B.R. 626,644-45 (N.D. Cal. 2002) 19 20 21 22 23 24 25 26 27 28 1 Section 366 states in pertinent part: (a) Except as provided in subsection (b) and (c) of this section, a utility may not alter, refuse, or discontinue service to, or discriminate against, the trustee or the debtor solely on the basis of the commencement of a case under this title or that a debt owed by the debtor to such utility for service rendered before the order for relief was not paid when due. (b) Such utility may alter, refuse, or discontinue service if neither the trustee nor the debtor, within 20 days after the date ofthc order for relief, furnishes adequate assurance of payment, in the form of a deposit or other security, for service after such date. On request of a party in interest and after notice and a hearing, the court may order reasonable modification of the amount of the deposit or other security necessary to pro\oide adequate assmance of payment. *** ( c)(2) subject to paragraphs (3) and ( 4), wilh respocllo a case likd under Chapler II, a ulilily referred to in subsection (a) may alter, refuse, or discontinue utility service, if during the 30-day period beginning on the date of the filing ofthe petition, the utility does not receive from the debtor or the trustee adequate assmance of payment for utility service that is satisfactory to the utility. (J)(A) On request of a party in interest and after notice and a hearing, the court may order modification of !he amount of an assurance of payment under paragraph (2). II U.S.C 366. -8- !-w1AfNDOCS-# 150805-v 2-CIJ'Stal_ Ut!lity _Motion _DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 9 of 15 (upholding the bunkruptcy court's finding that the debtor's likelihood of performance and 2 availability ofresources provided adequate assurance); Shirley v. Philadelphia Elec. Co. (In re 3 Shirley), 25 B.R. 24 7, 249 (Bankr. F.D. Pa. 1982) ("section 36fi(h) .. does not permit a utility to 4 request adequate assurance of payment for continued services unless there has been a default by 5 the debtor on a pre-petition debt owed for services rendered"). 6 Under the recently enacted section366(c) of the Bankruptcy Code, however, in a 7 Chapter 11 case, a utility company may alter, refuse, or discontinue utility service if within 30 8 days after the commencement of the Chapter 11 case, the utility compuny does not receive 9 adequate assurance in a form that is "satisfactory" to the utility compuny, subject to the Court's 10 ability to modifY the amount of adequate assurance. Further, under section 366( c), in making a 11 determination of whether an assurance of payment is adequate, the Court may not consider (i) the 12 absence of security before the petition date, (ii) the debtor" s history of timely payment or (iii) the 13 availability of an administrative expense priority to the utility company. 14 While the form of adequate assurance of payment may be limited under new 15 subsection 366(c) to the types of security enU11lerated in subsection 366(c)(l)(A), the amount of 16 the deposit or other form of security remains fully within the reasona hle discretion of the 17 Court 2 It has been well established that the requirement that a utility receive adequate assurance 18 of payment does not require a guarantee of payment. Instead, the protection granted to a utility is 19 intended to avoid exposing the utility to an umeasonable risk of nonpayment. In Adelphia 20 Business Solutions. Inc., 280 B.R. 63, 80 (Bankr. S.D.N.Y. 2002), the Bankruptcy Court for the 21 Southern District ofNew York stated that "filn determining adequate assurance, a bankruptcy 22 court is not required to give a utility company the equivalent of a guaranty of payment, but must 23 only determine that the utility is not subject to an umeasonable risk of nonpayment for post- 24 petition services." The essence of the Court's inquiry is an examination of the totality of the 25 circumstances in making an informed judgment as to whether utilities will be subject to an 26 27 28 2 II U.S.C. 366(b) provides: "On request of a party in interest and after notice and a hearing, the court may order reasonable modification of the amount of the deposit or other security necessary to provide adequate assurance of payment." Similarly, 11 U.S.C. 366(3)(A) provides: "On request of a party in interest and after notice and a hearing. the court may order modification of the amount of an assurance of payment under paragraph (2)." -9- MAINDOCS-III50805-v2-CI)slal_ Ut1lity _Mot ion.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 10 of 15 I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 unreasonable risk of nonpayment. Id. at 82-83. See also In re Magnesium Com. of America, 278 B.R. 698,714 (Bankr. S.D.N.Y. 2002) ("'n deciding what constitutes adequate assurance in a given ca,e, a bankruptcy court must focus upon the need of the utility for assurance, and to require that the debtor supply no more that than that, since the debtor almost perforce has a conflicting need to conserve scarce financial resources."). Adequate assurance of payment does not require an absolute guarantee of payment; instead, what is required is that the utility be protected from an unreasonable risk of future loss or nonpayment. The Bankruptcy Court is granted reasonable discretion in determining what constitutes adequate assurance of payment for future service. *** The terms of adequate assurance of payment should not be such a financial burden upon the debtor as to thwart or deter rehabilitation potential, and thereby be an unreasonable demand. Thus, when the adequate assurance issue arises in the context of a reorganization proceeding, the Bankruptcy Court must concern itself with the success of the rehabilitative process. The court may also consider the probability of payment through the bankruptcy proceedings. 9B Am. Jur. 2d Bankruptcy 1788 (2005). Here, the Debtor proposes to establish the Utility Deposit Account in order to provide adequate assurance to its Utility Providers. Under the circumstances of this case, the Debtor believes that the establishment of this substantial cash reserve, relative to the Debtor's estimated monthly consumption, constitutes adequate assurance of payment under section 366( c) of the Bankruptcy Code. In addition, the Debtor proposes to protect the Utility Providers further by establishing the Procedures provided for herein, whereby any Utility Provider can request additional adequate assurance in the event that it believes there are facts and circumstances with respect to its providing post-petition services to the Debtor that would merit greater protection. As set forth above, the Debtor carmot continue to perform without continued utility services. If any ofthe Utility Providers alter, refuse or discontinue service, even for a brief period, the Debtor's business operations would be severely disrupted. Such disruption could have a devastating impact on the Debtor's going concern value and ability to reorganize. In contrast, the Utility Pruviuers will not be prejudiced by the continuation of its services and will be paid all post-petition utility charges. Tt is therefore critical that utility services continue uninterrupted. -10- MAJNDOCS-ii 1 Utility_ Motion.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 11 of 15 This Court also has the authority to grant the relief requested herein pursuant to 2 section 1 OS( a) of the Bankruptcy Code which provides that the Court "may issue any order, 3 process or judgment that is necessary or appropriate to carry ant the provisions of this title." 4 II U.S.C. lOS( a). The purpose of section lOS( a) is "to assure the bankruptcy court[']s power to 5 take whatever action is appropriate or necessary in aid of the exercise of its jurisdiction." 6 2 COLLIERONBANKRUPTCY'1j 105.01, at 105-5 to 105-6 (l5 1 hrev. ed. 2001). Recausethe 7 proposed procedures protect the Debtor and the Utility Providers, they carry out section 366 in a 8 manner fully consistent therewith and are an appropriate exercise of this Court's authority under 9 section lOS(a) of the Bankruptcy Code. 10 IV. 11 THE RELIEF REQUESTED HEREBY IS 12 JUSTIFIED ON AN EMERGENCY BASIS 13 Fed. R. Bankr. P. 9006(c)(l) provides that, for "cause shown," a bankruptcy court may 14 reduce the time periods provided for service in the Bankruptcy Rules, except as to the time 15 periods provided in Fed. R. Bankr. P. 9006(c)(2) Since the time period at issue in this Motion is 16 not one of those listed in Fed. R. Bankr. P. 9006(c)(2), this Court has the power to grant the relief 17 prayed for herein on an "emergency" basis. As set forth in detail in the Declaration, cause exists 18 for authorizing the relief requested herein on an emergency basis. 19 v. 20 THE NOTICE GIVEN OF THIS MOTION IS APPROPRIATE 21 UNDER THE FACTS AND CIRCUMSTANCES OF THIS CASE 22 The Debtor has served a copy of this Motion on all secured creditors, the unsecured 23 creditors holding the 20 largest claims against the Debtor and the Office of the United States 24 Trustee. The Debtor respectfully submits that such notice is appropriate and comports with the 25 requirements of the Federal Rules of Bankruptcy Procedure and the T ,oca\ Bankruptcy Rules. See 26 Fed. R. Bankr. P. 2002, 9006(c); and Local Bankruptcy Rule 9075-1(a). 27 // 28 -11- MATNDOCS-# 150805-v l-Cryslal_ U bhty _ MotiOn.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 12 of 15 VI. 2 CONCLUSION 3 Based upon the foregoing, the Debtor respectfully requests that the Court entered its order 4 granting the relief requested herein, and granting to the Debtor such other and further relief as is 5 just and appropriate under the circumstances of this case. 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DATED: October 19,2010 WINTHROP COUCHOT PROFESSIONAL CORPORATION By:_--'/""s/'-"M'-='a"'rc=J._W'-'-"in"'thr=o"'p'------- Marc J. Winthrop Kavita Gupta [Proposed] General Insolvency Counsel for Debtor and Debtor-in-Possession -12- MAIN DOCS-# I 50805-v2-Crystal_ Utility_ Molion.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 13 of 15 2 3 4 5 6 7 8 9 10 l I 12 PROOF OF SERVICE OF DOCUMENT I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is 660 Newport Center Drive., 4th Fl., Newport Beach, CA 92660. A true and correct copy of the foregoing document described as: DEBTOR'S EMERGENCY MOTION FOR ORDER (A) PROHIBITING UTILITY PROVIDERS FROM ALTERING, REFUSING OR DISCONTINUING SERVICE, (B) DEEMING UTILITIES ADEQUATELY ASSURED OF FUTURE PERFORMANCE, AND (C) ESTABLISHING PROCEDURES FOR DETERMINING ADEQUATE ASSURANCE OF PAYMENT UNDER SECTION 366 OF THE BANKRUPTCY CODE; AND MEMORANDUM OF POINTS AND AUTHORITIES will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner indicated below: I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF")- Pursuant to controlling General Order(s) and Local Bankruptcy Rule(s) ("LBR"), the foregoing document will be served by the court via NEF and hyperlink to the document. On October 19, 2010, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following person(s) are on the Electronic Mail Notice List to receive NEF transmission at the email address(es) indicated below: Frank Cadigan frank.cadigan@iusdoj.gov United StalesT rustee (SA) ustpregionl6.sa.ecf@iusdoj .gov Marc J Winthrop mwinthrop@winthropcouchot.com, pj@winthropcouchot.com 13 0 Serv1ce Information continued on attached page 14 II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(indicate method for each person or entity served): On October 19. 2010 I served the following person(s) and/or entity(ies) at the last known address(es) in this 15 bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the Un1ted States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as 16 follows. Listing the JUdge here constitutes a declaration that mailing to the Judge will...!:ill completed no later than 24 hours after the document is filed. 17 18 19 20 21 22 23 24 25 26 27 2R ~ Service information continued on attached page Ill. SERVED BY PERSONAL DELIVERY. FACSJMJLE TRANSMISSION OR EMAIL (indicate method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, o n _ ~ - ~ - - - - , -I served the following person(s) and/or entity(ies) by personal delivery, or (for those who consented in writing to such service method). by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on the judge will be completed no later than 24 hours after the document is filed. 0 Service information continued on attached page I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. /} l . October 19,2010 Viann Corbin lflr.J....... Date Type Name 13- MAINDOCS-#l50805-v2-Crystal Utility __Motion.DOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 14 of 15 2 3 4 5 6 7 8 Crystal Cathedral Ministries Attn: Fred Southard. CFO 13280 Chapman Ave. Garden Urovc, CA 92840-4414 Out of Court Committee Naneue D. Sanders. Esq. Ringstad & Sanders LLP 2030 Main Street, Suite 1200 I rviuc. CA 926 H F&M Bank of Long Beach 9 c/o Lawrence C. Meyerson, Esq. 578 Washington Blvd., #867 10 Marina Del Rey. CA 90292 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 LARGEST PNCEF,LLC Attn Marshall!'. Goldberg, Esq. 21700 OxnarJ St._ H430 Woodland II ills. CA 91367-3665 Promotional Media Inc. Attn: LJenise Bodourinkoch 727 N. Main St. Orange, Ci\ 92868 ln!Ocision Management Corr. Attn: Corporate Officer 325 Springsidc Dr Akron, OH 44333 Media Services Agency 1\Lln: John C:asona P.O. Box 11901 Santa Ana. CA 92 711 SERVICE VIA OVERNIGHT DELIVERY United States Trustee's OfTice Attn: Frank Cadigan, Esq. 411 West Fourth St., #9041 Sanla Ana, CA 92701 Credil Managers Association Attn: Charles Klaus 40 East Verdugo Ave. Burbank. C/\ 91502 20 LARGEST l)aystar "l"elevision Network 1\Un: Corporate Olllcer 3901 11;ghwoy 121 Bedford, TX 76021 Gipson llofTmun & Pancione Attn: Kobcrt E. Gipson 1901 Avenueoflhe StarsifllOO Los Angeles. CA 90067-6002 Lutzker & Lulzker, IJ.P Attn: Arnie Lutzkcr 1233 20 1 h Street NW Suite 703 Washington, DC 20036 Classis of California Canyon Lake J\ttn: Corporate Officer 12765 Oaks Avenue Chino. CA 91710 -14- CCM 20Largest, Secured, SpecialNotice Document No. 153450 F&M Bank of Lung Beach c/o Michael Leight. Esq. 6700 Pacific Coast H'"")', #237 Long Beach, CA 90803 20 LARGEST KMYQ Tribune Television NW Attn: Corporate Officer File 30697/P.O. Box 60000 San Fmncisco, CA 94160 WKRC-TV Newport Teb.:ision LLC Alln: Corporate Officer P.O. Box 841646 Dalla:-;. TX 75284-1646 A-1 Building Maintenance, Jnc. Attn: Alan Bennett P.O. Box 80507 Rancho Santa Margmita. CA 92688-0507 Advantage Mailing Inc. Attn: Corporate Officer 1600 N. Kraemer Blvd. Anaheim, CA 92806 MA JNIJOD-# 150805-v Utility_ Motion.UOC Case 8:10-bk-24771-RK Doc 3 Filed 10/19/10 Entered 10/19/10 14:57:36 Desc Main Document Page 15 of 15 HiS-CA. Inc KMSP World M;nketing Inc_ Attn: Angela Moghadasnia Attn: Corporate Officer Attn: Rick Payne 540 I .lurupa Street 4614 Collection Center Dr. 14407 Alondra Blvd. 2 Ontario, CA 91 761 Chicago, IL 60693 La Mirada CA 90638 3 Ll\lyd Daniel Corporation WKCF-TV Thoma<; Nelson Puhlisher 4 Attn: Chad Scalf Atln: Corporate Ollicer Attn: C()rporate Officer 1600 S. Federal Hwy P.O. !lox 919060 2576 Momentum PI 5 Pompano Beach. FL 33062 Orlando, CA 32891-9060 Chicago. IL 60689-0001 6 KWGN-TV Scripps I loward Broad 7 Attn: Corporate Officer dbaKNXV P.O. Box 677346 Attn: Corporate Officer 8 Dallas, TX 75267-7346 P .0. Box 116923 Atlanta. GA l} 10 II UTILITY UTILITY UTILITY 12 AT & T City of Garden Grove 13 Attn: Corporate Officer Attn: Corporate Officer Edison Company Payment Center P.O. !lox 3070 Attn: Corporate Officer 14 Sacramento. CA 95887-0001 Garden Grove. CA 92842-3070 1241 S. Grand /\venue Santa Ana. CA 92705 15 16 AT & T Mobilily Attn: Corporate Olliccr Garden Grove Disposal The Gas Company P.O. Box 6463 Attn Corporate Officer Attn: Corporate Otlieer 17 Carol Stream, IL 60197-6463 P.O. Box 78829 P.O. BoxC Phoenix. AZ R5062-8829 Monterey Park. CA 91756 18 AT & l releconference 19 Attn: Corporate Officer Management or OC Cox Communication P.O. llox n411 Attn: Corporate Oft1cer Attn: Corporate Officer 20 Omaha, NE 68103-2840 P.O. Box 78251 P.O. Box 53280 AZ 85062-8251 Phoenix. AZ 85072-3280 21 22 City of Orange Attn: Corporate Officer Telepacific Communications Verizon Wireless P.O. Box 30146 Atrn: Corporate Officer Attn: Corporate Officer 23 Los Angeles, CA 90030-0146 P .0. Box 5260 15 P .0. Box 9622 Sacramento, CA 95852-60 15 Mission !Tills. CA 91346-9622 24 25 CR & R Incorporated Attn: Corporate Officer P.O. Hox 206 26 Stanton. CA 90680 27 28 -IS- MAlN DOC __U t1lity _Mot ion. DOC
John R. Doolittle, As A Person Participating in The Affairs of Bay Gulf Federal Credit Union v. National Credit Union Administration, 992 F.2d 1531, 11th Cir. (1993)
Hearing Date: October 26, 2012 HEARING TIME: 9:30 A.M. Location: Seattle, Courtroom 7206 Responses Due: at Time of Hearing Subject To Entry of Order Shortening Time For Hearing
John R. Doolittle, As A Person Participating in The Affairs of Bay Gulf Federal Credit Union v. National Credit Union Administration, 992 F.2d 1531, 11th Cir. (1993)
Hearing Date: October 26, 2012 HEARING TIME: 9:30 A.M. Location: Seattle, Courtroom 7206 Responses Due: at Time of Hearing Subject To Entry of Order Shortening Time For Hearing