Capitalized Terms Used But Not Defined Herein Shall Have The Respective Meanings Ascribed To Them in The Motion. The Last Four Digits of The Debtor's Federal Tax Identification Number Are 3507
Capitalized Terms Used But Not Defined Herein Shall Have The Respective Meanings Ascribed To Them in The Motion. The Last Four Digits of The Debtor's Federal Tax Identification Number Are 3507
Capitalized Terms Used But Not Defined Herein Shall Have The Respective Meanings Ascribed To Them in The Motion. The Last Four Digits of The Debtor's Federal Tax Identification Number Are 3507
: : : ---------------------------------------------------------------- x
AMENDED INTERIM ORDER PURSUANT TO SECTIONS 105(a), 362(d), 363(b) AND 503(b) OF THE BANKRUPTCY CODE AND BANKRUPTCY RULES 4001(d) AND 6004(a) (I) AUTHORIZING DEBTOR TO (A) CONTINUE ITS WORKERS COMPENSATION PROGRAM AND ITS INSURANCE PROGRAMS AND (B) PAY ALL OBLIGATIONS IN RESPECT THEREOF AND (II) AUTHORIZING FINANCIAL INSTITUTIONS TO HONOR AND PROCESS CHECKS AND TRANSFERS RELATED TO SUCH OBLIGATIONS Upon the motion, dated February 21, 2011 (the Motion), 1 of Lehr Construction Corp., as debtor and debtor in possession (the Debtor), 2 for an order, pursuant to sections 105(a), 362(d), 363(b), and 503(b) of chapter 11 of title 11 of the United States Code (the Bankruptcy Code) and Rules 4001, 6003 and 6004 of the Federal Rules of Bankruptcy Procedure, (i) authorizing the Debtor to (a) continue its workers compensation programs (the Workers Compensation Program) and its liability, product, property, and other insurance programs, including, without limitation, all of the policies set forth on Exhibit A annexed hereto (together with the Workers Compensation Program, the Insurance Programs), (b) pay all prepetition obligations in respect thereof, on an uninterrupted basis, consistent with its practices in effect prior to the commencement of the Debtors chapter 11 case, including the payment of all premiums, claims, deductibles, administrative expenses, and all other charges incurred,
Capitalized terms used but not defined herein shall have the respective meanings ascribed to them in the Motion. The last four digits of the Debtors federal tax identification number are 3507.
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whether relating to the period prior to or after the commencement of this chapter 11 case (collectively, the Insurance Obligations), and (c) modify the automatic stay solely and for the limited purpose of permitting employees with claims under the Workers Compensation Program to proceed with their claims in accordance with such program in the appropriate judicial or administrative forum; and (ii) authorizing certain banks and financial institutions (the Banks), including, but not limited to, the Banks listed on Exhibit B annexed hereto, to honor and process checks and transfers related to such obligations, all as more fully set forth in the Motion; and the Court having jurisdiction to consider the Motion and the relief requested therein pursuant to 28 U.S.C. 157 and 1334 and the Standing Order of Referral of Cases to Bankruptcy Judges of the District Court for the Southern District of New York, dated July 19, 1984 (Ward, Acting C.J.); and consideration of the Motion and the relief requested therein being a core proceeding pursuant to 28 U.S.C. 157(b); and venue being proper before this Court pursuant to 28 U.S.C. 1408 and 1409; and notice of the Motion appearing adequate and appropriate under the circumstances, and it appearing that no other or further notice need be provided; and the Court having determined that the relief requested in the Motion being in the best interests of the Debtor, its creditors, and all parties in interest; and the Court having determined that the legal and factual bases set forth in the Motion establish just cause for the relief granted herein; and upon all of the proceedings had before the Court and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED that the Motion is granted to the extent provided herein on an interim basis; and it is further ORDERED that this Order amends and supersedes that certain Interim Order Pursuant to Sections 105(a), 362(d), 363(b) and 503(b) of the Bankruptcy Code and Bankruptcy Rules 4001(d) and 6004(a) (I) Authorizing Debtor to (A) Continue its Workers Compensation
2
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program and its Insurance programs and (B) Pay All Obligations in Respect Thereof and (II) Authorizing Financial Institutions to Honor and Process Checks and Transfers Related to Such Obligations dated February 23, 2011 (Docket No. 15) (the First Interim Order); and it is further ORDERED that the Debtor is authorized and empowered to maintain its Insurance Programs without interruption, on the same basis, and in accordance with the same practices and procedures that were in effect prior to the Petition Date; and it is further ORDERED that the Debtor is authorized, but not required, to pay, in its sole discretion, all Insurance Obligations that are or have become payable, including, without limitation, all premiums, claims, deductibles, excess, retrospective adjustments, administrative and brokers fees, and all other obligations arising under the Insurance Programs, including those Insurance Obligations that (i) were due and payable or related to the period prior to the Petition Date, without further order of the Court, and (ii) are or become due and payable or related to the period after the Petition Date through and including the date of the Final Hearing (as defined below) up to an aggregate amount of $225,000; and it is further ORDERED that, pursuant to section 362(d) of the Bankruptcy Code, to the extent any of the Debtors employees hold claims under the Debtors Workers Compensation Program, these employees are authorized, at the Debtors discretion, to proceed with their workers compensation claims through and including the collection of any judgment in the appropriate judicial or administrative forum under the Workers Compensation Program; provided, that the prosecution of such claims is in accordance with the Workers Compensation Program and the recoveries are limited to the proceeds available under the Workers Compensation Program; and it is further ORDERED that the Banks, including, but not limited to those on the list annexed
3
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hereto as Exhibit B, are authorized to honor, process, and pay, to the extent of funds on deposit, any and all prepetition checks or electronic fund transfer requests issued by the Debtor in respect of any Insurance Obligation, whether pre- or post-petition; and it is further ORDERED that any Bank, including, but not limited to, those on the list annexed hereto as Exhibit B, may rely on the representations of the Debtor with respect to whether any check or other transfer drawn or issued by the Debtor prior to the Petition Date should be honored pursuant to this Order; and it is further ORDERED that nothing in this Order or the Motion shall be construed as prejudicing the rights of the Debtor to dispute or contest the amount of or basis for any claims against the Debtor in connection with or relating to the Debtors Insurance Programs; and it is further ORDERED that, to the extent that any Insurance Program or any related contract or agreement is deemed an executory contract within the meaning of section 365 of the Bankruptcy Code, neither this Order nor any payments made in accordance with this Order shall constitute the postpetition assumption of any such Insurance Program, contract, or related agreement pursuant to section 365 of the Bankruptcy Code; and it is further ORDERED that Bankruptcy Rule 6003(b) has been satisfied; and it is further ORDERED that notwithstanding any applicability of Rules 6004(h), 7062, or 9014 of the Bankruptcy Rules, the terms and conditions of this Order shall be immediately effective and enforceable upon its entry; and it is further ORDERED that notice of the Motion as provided herein shall be deemed good and sufficient notice of such Motion and the requirements of Bankruptcy Rules 4001(d) and 6004(a) are waived; and it is further ORDERED that a final hearing on the relief requested in the Motion shall be
4
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scheduled for March 23, 2011 at 11:00 a.m. (prevailing Eastern Time) (the Final Hearing); and it is further ORDERED that this Court shall retain jurisdiction to hear and determine all matters arising from or related to the implementation, interpretation and/or enforcement of this Order. Dated: March 11, 2011 New York, New York /s/ Sean H. Lane HONORABLE SEAN H. LANE UNITED STATES BANKRUPTCY JUDGE
5
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0000238
08/04/201008/04/2011
$99,000
0000000000211
12/01/2010 12/01/2011
$59,388
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Deductible Employee Dishonesty: $15,000 Money and Securities On Premises: $15,000 Money and Securities Off Premises: $15,000 Forgery or Alteration: $15,000 Computer Fraud: $15,000 Wire Transfer Coverage: $15,000 Employee Practices Liability: $25,000 Fiduciary Liability: $1,000
Federal Insurance Company Federal Insurance Company Travelers Property Casualty Co.
00000052 00000037
$1,500 $108,274
None Self-Insured Retention Endorsement: $100,000 Employee Benefits Liability Coverage (Claims Made) Retro Date 8/4/00: $200,000 Contractors GL Deductible Endorsement: $200,000
00000000000000AT IL10
$1,540,064
Business Automobile
00000000000K6880
08/04/201008/04/2011
$76,895
Hired Auto Physical Damage: $1,000 28 Automobiles: Comprehensive and Collision Deductibles: $1,000 / automobile
08/04/201008/04/2011 08/04/201008/04/2011
$209,564
None
$275,000
None
2
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Type of Coverage Commercial Umbrella/Excess Commercial Umbrella/Excess Commercial Umbrella/Excess Statutory NYS Disability Benefits Disability Commercial
Insurer Zurich American Insurance Company St. Paul Fire & Marine Insurance Co. RSUI Indemnity Company National Benefit Life Insurance Company
Deductible None
0000000074
$69,690
None
000000561
$39,000
None
00000000514
Paid Direct
N/A
000000848
1/26/2011 1/26/2012
$1,118
N/A
Commercial Surety Travelers Casualty & Street Obstruction Surety Bond Commercial Surety Travelers Casualty & Union Health Surety Welfare Commercial Surety Travelers Casualty & Home Surety Improvement Contract Commercial Surety Travelers Casualty & Mechanics Lien Surety Bond
000000222
12/31/2010 12/31/2011
$1,000
N/A
000000448
$200
N/A
000000172
$200
N/A
000000989
12/01/2010 12/01/2011
$9,835
N/A
0000000403
12/01/2010 12/01/2011
$326
N/A
3
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Type of Coverage Insurer Commercial Surety RLI Insurance Mechanics Lien Company Bond
Deductible N/A
0000000047
10/27/2010 10/27/2011
$1,080
N/A
0000000046
10/27/2010 10/27/2011
$662
N/A
0000000048
10/27/2010 10/27/2011
$764
N/A
00000739
04/04/2010 04/04/2011
$300
N/A
4
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HSBC Bank USA, N.A. 145 Fifth Avenue New York, NY 10010 212-375-1273 Citibank 100 Citibank Drive San Antonio, TX 78245-3214 JP Morgan Chase Bank, N.A. P.O. Box 659754 San Antonio, TX 78265-9754 Gotham 1412 Broadway New York, NY 10018 212-944-2599 Amalgamated Bank 52 Broadway New York, NY 10004 212-894-3000
Lehr Operating 2 Sullivan & Cromwell Fidelity Strand CBS/CRG Covington & Burling Google Amalgamated, Unite Here, Makor Kramer Levin Renaissance Technologies Goldman Sachs/AT&T The Limited Carpenters Viacom/MTV Goldman NY Warburg Pincus Economist Payroll (II) Flexplan (checking) (Smartflex) Money Market Reimburseables Project Related
xxxxxxxx67 xxxxxxxx98 xxxxxxxx06 xxxxxxxx14 xxxxxxxx22 xxxxxxxx30 xxxxxxxx48 xxxxxxxx55 xxxxxxxx63 xxxxxxxx71 xxxxxxxx66 xxxxxxxx54 xxxxxxxx97 xxxxxxxx12 xxxxxxxx52 xxxxxxxx94 xxxxxxxx54 xxxxxxxx60 xxxxxxxx89 xxxxxxxx05 xxxxxxxxx43 xxx-xxxx7-1
Project Related
xxx-xxxxx88
Project Related
xx-xxxx-x64
xxx-xxx-73
Project Related
xxxxxxx48
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