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Ex Parte Motion to Extend Time Joint Ex

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Enterprising Investor Member Level  Friday, 06/26/20 03:36:32 AM
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Ex Parte Motion to Extend Time Joint Ex Parte Motion to Extend Deadline for Effective Date and Funding of Chapter 11 Plan of Reorganization. Filed by Brandon A. Brown of Stewart Robbins & Brown, LLC., Barbara B. Parsons of The Steffes Firm, LLC on behalf of First NBC Bank Holding Company, Official Unsecured Creditors' Committee (6/25/20)

The Joint Plan includes multiple conditions for it to become effective, including the requirement that the First Round Investment (cash amount of $5 million) be immediately available for disbursement from escrow for use in accordance with the Joint Plan. The FRI Escrow Agreement [Doc. 815], governing the investment funding, requires that the balance of the First Round Investment be deposited into the escrow account of Debtor’s counsel (“Escrow Account”) by 6/26/20. While all First Round Investors have placed at least 10% of their respective investments in the Escrow Account, the remaining portion of the First Round Investment has not yet been deposited as a result of investors’ concerns related to the pending Appeal.

The Debtor and First Round Investors are currently in the process of determining the Appeal’s effect, if any, on future business operations of the Debtor. Such process includes consultation with non-bankruptcy professionals and remains ongoing at this time. In addition, since the Appeal was filed, the Debtor and Treasury have had initial discussions regarding the possibility of amicably resolving the Appeal. Plan Proponents believe that if an amicable resolution of the Appeal is possible, the approval process within Treasury could likely take several weeks to be accomplished.

Pursuant to Section 1.1.40 of the confirmed Joint Plan, “[e]xcept as otherwise extended by the Court on motion of the Plan Proponents, the Effective Date shall in no event occur more than sixty (60) days after the Confirmation Date”. Based on the 5/15/20 Confirmation Date, the deadline for the Plan’s Effective Date is currently 7/14/20.

Through this motion, Plan Proponents seek a 60-day extension of the deadline (or until 9/14/20) for the Effective Date to allow: (1) the First Round Investors to conclude their assessment of any effects of the Appeal on future business operations of the Debtor; and/or, (2) as appropriate, the Plan Proponents to attempt to amicably resolve the Appeal with Treasury. Plan Proponents maintain that the foregoing actions are necessary for implementation of the Joint Plan. In addition, they assert that the 60-day extension requested is reasonable given the delay between commencement of this Chapter 11 Case in May 2017 and the Confirmation Date of 5/15/20.

The Plan Proponents seek this Court’s approval to amend the FRI Escrow Agreement to provide for the balance of the First Round Investment to
be deposited into the Escrow Account on or before 9/04/20.

Based on the post-confirmation developments, resulting uncertainties existing in this case and the time needed to resolve such uncertainties, Plan Proponents are seeking the Court's approval for an extension of the Effective Date deadline for the Joint Plan until 9/14/20, and the deadline for the First Round Investment funding until 9/04/20.

Source: PACER [Docket 875]

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