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Full title: Response (Debtors' Limited Response to Motion of Potter Anderson & Corroon LLP for Leave to Withdraw as Counsel to Urban Commons, LLC, its Affiliated Entities, Constellation Hospitality Group, LLC, Howard Wu and Taylor Woods) (related document(s)910) Filed by EHT US1, Inc. (Dean, G.) (Entered: 08/04/2021)

Document posted on Aug 3, 2021 in the bankruptcy, 5 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

The above-captioned debtors and debtors-in-possession (collectively, the “Debtors”), through their undersigned counsel, hereby submit this limited response (the “Response”) to the Motion of Potter Anderson & Corroon LLP for Leave to Withdraw as Counsel to Urban Commons, LLC, its Affiliated Entities, Constellation Hospitality Group, LLC, Howard Wu and Taylor WoodsUCCONT1, LLC (0463); UCF 1, LLC (6406); UCRDH, LLC (2279); UCHIDH, LLC (6497); Urban Commons 4th Street A, LLC (1768); Urban Commons Anaheim HI, LLC (9915); Urban Commons Bayshore A, LLC (2422); Urban Commons Cordova A, LLC (4152); Urban Commons Danbury A, LLC (4388); Urban Commons Highway 111 A, LLC (4497); Urban Commons Queensway, LLC (6882); Urban Commons Riverside Blvd., A, LLC (4661); and USHIL Holdco Member, LLC (4796).The Rule 2004 discovery process is also 2 See Order Granting Debtors’ Mot., Pursuant to Federal Rule of Bankruptcy Procedure 2004, for Order Authorizing Examination of Taylor Woods, Howard Wu, Urban Commons, LLC, and Current or Former Affiliated Persons and Entities [Docket No. Although Potter Anderson has proposed simply transferring the Discovery Materials to the trustee in the chapter 7 case pending against Urban Commons LLC in California, that approach is insufficient because some of the Discovery Materials may not belong to Urban Commons LLC.The same could be true for other documents that, although located on Urban Commons LLC’s servers or stored at remote storage locations to which Urban Commons LLC has access, in fact relate to the business and affairs of Urban Commons LLC’s affiliates.

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE ----------------------------------------------------------------x--: In re: : Chapter 11 : EHT US1, Inc., et al., : Case No. 21-10036 (CSS) : Debtors.1 : (Jointly Administered) : : Re: Docket No. 910 ----------------------------------------------------------------x--DEBTORS’ LIMITED RESPONSE TO MOTION OF POTTER ANDERSON & CORROON LLP FOR LEAVE TO WITHDRAW AS COUNSEL TO URBAN COMMONS, LLC, ITS AFFILIATED ENTITIES, CONSTELLATION HOSPITALITY GROUP, LLC, HOWARD WU AND TAYLOR WOODS The above-captioned debtors and debtors-in-possession (collectively, the “Debtors”), through their undersigned counsel, hereby submit this limited response (the “Response”) to the Motion of Potter Anderson & Corroon LLP for Leave to Withdraw as Counsel to Urban Commons, LLC, its Affiliated Entities, Constellation Hospitality Group, LLC, Howard Wu and Taylor Woods [Docket No. 910] (the “Withdrawal Motion”). In support of this Response, the Debtors respectfully state as follows: 1 The Debtors in these chapter 11 cases, along with the last four digits of each debtor’s tax identification number, as applicable, are as follows: EHT US1, Inc.(6703); 5151 Wiley Post Way, Salt Lake City, LLC (1455); ASAP Cayman Atlanta Hotel LLC (2088); ASAP Cayman Denver Tech LLC (7531); ASAP Cayman Salt Lake City Hotel LLC (7546); ASAP Salt Lake City Hotel, LLC (7146); Atlanta Hotel Holdings, LLC (6450); CI Hospitality Investment, LLC (7641); Eagle Hospitality Real Estate Investment Trust (7734); Eagle Hospitality Trust S1 Pte. Ltd. (7669); Eagle Hospitality Trust S2 Pte. Ltd. (7657); EHT Cayman Corp. Ltd. (7656); Sky Harbor Atlanta Northeast, LLC (6846); Sky Harbor Denver Holdco, LLC (6650); Sky Harbor Denver Tech Center, LLC (8303); UCCONT1, LLC (0463); UCF 1, LLC (6406); UCRDH, LLC (2279); UCHIDH, LLC (6497); Urban Commons 4th Street A, LLC (1768); Urban Commons Anaheim HI, LLC (9915); Urban Commons Bayshore A, LLC (2422); Urban Commons Cordova A, LLC (4152); Urban Commons Danbury A, LLC (4388); Urban Commons Highway 111 A, LLC (4497); Urban Commons Queensway, LLC (6882); Urban Commons Riverside Blvd., A, LLC (4661); and USHIL Holdco Member, LLC (4796). The Debtors’ mailing address is 3 Times Square, 9th Floor New York, NY 10036 c/o Alan Tantleff (solely for purposes of notices and communications).

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1. The Debtors do not take issue in principle with the request of Potter Anderson & Corroon LLP (“Potter Anderson”) to withdraw as counsel to the Urban Commons Parties following their failure to pay Potter Anderson more than $500,000 in legal fees. The Debtors file this Response solely to express their concerns regarding the effect that Potter Anderson’s withdrawal could have on pending litigation and discovery between the Debtors and the Urban Commons Parties and to make sure that such concerns are adequately addressed by any order entered by the Court in response to the Withdrawal Motion. 2. As the Court is aware, in May 2021, the Debtors commenced an adversary proceeding against certain of the Urban Commons Parties, including Messrs. Woods and Wu, concerning a fraudulent Paycheck Protection Program loan (the “PPP Litigation”). The Debtors have also been taking Rule 2004 discovery from the Urban Commons Parties pursuant to an order of the Court, and have commenced other adversary proceedings against them as well.2Both the PPP Litigation and the Rule 2004 discovery are ongoing.3 In the PPP Litigation, the Debtors recently filed a motion for summary judgment, the defendants’ response to which would have been due on July 12, 2021 but for defendants’ filing of a motion to extend that deadline pending the resolution of the Withdrawal Motion.4 The Rule 2004 discovery process is also 2 See Order Granting Debtors’ Mot., Pursuant to Federal Rule of Bankruptcy Procedure 2004, for Order Authorizing Examination of Taylor Woods, Howard Wu, Urban Commons, LLC, and Current or Former Affiliated Persons and Entities [Docket No. 376] (the “Rule 2004 Discovery Order”); Compl. for (I) Avoidance and Recovery of Fraudulent Transfers Pursuant to 11 U.S.C. §§ 548 and 550, (II) Common Law Fraud, (III) Unjust Enrichment, (IV) Conversion, (V) Constructive Trust, and (VI) Prelim. Injunctive Relief, Adv. Proc. No. 21-50476 (CSS) [Adv. Docket No. 2]. 3 The other adversary proceedings, which seek to recover, among other things, past due rent under lease agreements with the Debtors, are presently stayed. 4 See Mot. to Extend the Time to Respond to Pl. Urban Commons Queensway, LLC’s Mot. for Summ. J. Pursuant to Federal Rule of Civil Procedure 56 and Federal Rule of Bankruptcy Procedure 7056 [Adv. No. 21-50476, Docket No. 46] (the “Extension Motion”). The Extension Motion was filed on July 12, 2021, the same day as the original deadline to response to the summary judgment motion.

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ongoing, with the Debtors having recently requested the production of certain additional documents from the Urban Commons Parties. 3. The Debtors want to make sure that the Withdrawal Motion does not prejudice the Debtors’ rights in connection these ongoing discovery and litigation efforts. First, counsel’s withdrawal should not affect the preservation of discovery materials. At present, the Debtors understand that Potter Anderson is in possession of (either directly or through discovery vendors it has retained in these cases) thousands of the Urban Commons Parties’ (including Messrs. Woods’ and Wu’s) emails, text messages, documents from electronic document depositories, and other relevant files (the “Discovery Materials”). These documents must be preserved if counsel is permitted to withdraw. The Debtors have been discussing the issue with Potter Anderson. Although Potter Anderson has proposed simply transferring the Discovery Materials to the trustee in the chapter 7 case pending against Urban Commons LLC in California, that approach is insufficient because some of the Discovery Materials may not belong to Urban Commons LLC. For example, Potter Anderson has acknowledged that text messages and other data from Messrs. Woods’ and Wu’s personal devices would not be provided to the chapter 7 trustee.5These documents must be preserved, too. 4. Second, counsel’s withdrawal should not prevent the Debtors from proceeding with further litigation and discovery against the Urban Commons Parties, some of which is time sensitive. As the Debtors have explained to the Court in their motion for preliminary injunction in the PPP Litigation, the Debtors are growing more concerned with each passing day of the ability of the defendants in that litigation, including Messrs. Woods and Wu, to satisfy a 5 The same could be true for other documents that, although located on Urban Commons LLC’s servers or stored at remote storage locations to which Urban Commons LLC has access, in fact relate to the business and affairs of Urban Commons LLC’s affiliates.

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judgment in the Debtors’ favor. For this reason, the Debtors would be prejudiced if counsel’s withdrawal means that Messrs. Woods and Wu receive a further extension of their time to respond to the pending motion for summary judgment. Similarly, the Debtors would be prejudiced if they are unable to obtain further discovery from the Urban Commons Parties, including discovery regarding the whereabouts of Debtor property and of assets of the Urban Commons Parties that could be used to satisfy judgments against them. Finally, counsel’s withdrawal should not affect the ability of the Debtors to prosecute an objection to the proofs of claim that certain of the Urban Commons Parties filed recently seeking more than $190 million from the Debtors’ estates. 5. While some parties in this situation may be entitled to a grace period to find new counsel before responding to pending matters, the Urban Commons Parties are not. As the Debtors have explained elsewhere, the Urban Commons Parties have acted inequitably before and during these cases, and the withdrawal of their counsel is entirely their own fault. The Urban Commons Parties should not, under these circumstances, be allowed to effectively use their counsel’s withdrawal to their strategic advantage by delaying time-sensitive litigation. 6. Accordingly, the Debtors respectfully request that any order granting the Withdrawal Motion expressly state that (i) all Discovery Materials, including those in Potter Anderson’s possession, shall be preserved and maintained by Potter Anderson until further order of the Court, and (ii) the Urban Commons Parties are required to comply with all deadlines (including any deadline to respond to the Motion for Summary Judgment) and shall not obtain any extensions of time as a result of counsel’s withdrawal. [Remainder of Page Intentionally Left Blank]

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Dated: August 4, 2021 COLE SCHOTZ P.C. Wilmington, Delaware /s/ G. David Dean Seth Van Aalten (admitted pro hac vice) G. David Dean (No. 6403) 500 Delaware Avenue, Suite 1410 Wilmington, Delaware 19801 Telephone: (302) 652-3131 Facsimile: (302) 574-2103 Email: svanaalten@coleschotz.com ddean@coleschotz.com - and - PAUL HASTINGS LLP Luc. A. Despins, Esq. (admitted pro hac vice) Nicholas A. Bassett, Esq. (admitted pro hac vice) G. Alexander Bongartz, Esq. (admitted pro hac vice) 200 Park Avenue New York, New York 10166 Telephone: (212) 318-6000 Facsimile: (212) 319-4090 Email: lucdespins@paulhastings.com nicholasbassett@paulhastings.com alexbongartz@paulhastings.com Counsel to Debtors and Debtors in Possession

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