HTML Document View

Full title: Declaration Of: Jonathan Kagan in Support of Motion for an Order Compelling Assumption or Rejection of Executory Contracts Pursuant to 11 U.S.C. § 365(D)(2) Filed by ROBERT R. KINAS on behalf of PETER HARRIS, JONATHAN KAGAN, MICHAEL MOSCA, MICHAEL MOYLAN, SCOTT SKLAR, BRIAN TSUNG, ALI WAMBOLD (Related document(s)627 Motion to Assume/Reject filed by Interested Party ALI WAMBOLD, Interested Party JONATHAN KAGAN, Creditor SCOTT SKLAR, Creditor MICHAEL MOSCA, Creditor BRIAN TSUNG, Creditor MICHAEL MOYLAN, Creditor PETER HARRIS) (Attachments: # 1 Exhibit 1 # 2 Exhibit 2 # 3 Exhibit 3 # 4 Exhibit 4 # 5 Exhibit 5 # 6 Appendix 6) (KINAS, ROBERT) (Entered: 04/27/2021)

Document posted on Apr 26, 2021 in the bankruptcy, 4 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

Moylan, I served as a member of the Board of Managers of Gump’s Holdings, LLC (“Holdings6 in the years prior to Holdings’ filing for bankruptcy protection on August 3, 2018 (the “Petitio7 Date”).IowarLas 16 the days following the bankruptcy petitions filed by Holdings, Gump’s Corp. (“Retail”), anH 3 8 38 17 (“Direct,” and together with Holdings and Retail, “Debtors” or “Gump’s”18 the Managers (1) oversaw the payment of accrued vacation time to former Gump’s employees, an19 (2) instructed Debtors’ bankruptcy counsel at Garman Turner Gordon LLP (“GTG”) concernin20 dealings with the press, among other matters.Attached hereto as Exhibit 6 is a true and correct copy of the Complaint Against th10 Managers, Directors and Officers of Gump’s Holdings, LLC, Gump’s Corp., and Gump’sTo date, Holdings has not indemnified, or offered to indemnify me or any of thH 3 8 38 17 other Director Defendants for any expenses, damages, or other losses that we have incurred (or ma18 incur in the future) in connection with the Adversary Proceeding.

List of Tables

Document Contents

1 Robert R. Kinas (NV Bar No. 6019) Charles E. Gianelloni (NV Bar No. 12747) 2 SNELL & WILMER L.L.P. 3883 Howard Hughes Parkway, Suite 1100 3 Las Vegas, NV 89169 Telephone: (702) 784-5200 4 Facsimile: (702) 784-5252 Email: rkinas@swlaw.com 5 cgianelloni@swlaw.com 6 Eric Seiler (pro hac vice application forthcoming) Michael S. Palmieri (pro hac vice application 7 forthcoming) FRIEDMAN KAPLAN SEILER & ADELMAN LLP 8 7 Times Square New York, NY 10036 9 Telephone: (212) 833-1100 Facsimile: (212) 833-1250 10 Email: eseiler@fklaw.com mpalmieri@fklaw.com 11 Attorneys for Ali Wambold, Jonathan Kagan, Scott 0 12 Sklar, Michael Mosca, Brian Tsung, Michael Moylan, 0 11 and Peter Harris uite 9 13 S6 d Hughes Parkway, Vegas, Nevada 891702.784.5200 1145 UNITED DSTISATTREISC BTA O NFK NREUVPATDCAY COURT owarLas 16 H 3 In re GUMP’S HOLDINGS, LLC, dba Case No. 18-14683-mkn 8 38 17 GUMP’S, dba GUMP’S SAN FRANCISCO, Chapter 11 – LEAD CASE (Jointly Administered)  Affects this Debtor. 18 In re GUMP’S CORP., Case No. 18-14684-mkn 19 Chapter 11  Affects this Debtor. 20 In re GUMP’S BY MAIL, INC., Case No. 18-14685-mkn Chapter 11 21  Affects this Debtor. DECLARATION OF JONATHAN KAGAN 22 IN SUPPORT OF MOTION FOR AN ORDER COMPELLING ASSUMPTION O 23 REJECTION OF EXECUTORY CONTRACTS PURSUANT TO 11 U.S.C. 24 § 365(D)(2) 25 I, JONATHAN KAGAN, declare: 26 27 /// 28

1

1 1. I am personally knowledgeable and aware of each of the facts stated herein, to whic2 I could competently testify if called upon to do so in a court of law. 3 2. I am a Managing Principal at Corporate Partners, LLC (“Corporate Partners”4 Together with my current and former Corporate Partners colleagues, Ali Wambold and Micha5 Moylan, I served as a member of the Board of Managers of Gump’s Holdings, LLC (“Holdings6 in the years prior to Holdings’ filing for bankruptcy protection on August 3, 2018 (the “Petitio7 Date”). 8 3. In addition to Wambold, Moylan, and myself, the other members of Holding9 Board of Managers (the “Managers”) at or around the Petition Date were Scott Sklar, Peter Harri10 and John Chachas. 11 4. The Managers, including me, served pursuant to the terms of the Thirteent12 Amended and Restated Operating Agreement of Gump’s Holdings, LLC, effective of July 16, 2010 0 1 1 uite 9 13 (the “Holdings Operating Agreement”). A true and correct copy of the Holdings OperatinS6 d Hughes Parkway, Vegas, Nevada 891702.784.5200 1145 Agreem5e.n t is aTtthaceh Meda nasa gEexrsh icboint t1in. u ed to serve and manage Holdings after the Petition Date. IowarLas 16 the days following the bankruptcy petitions filed by Holdings, Gump’s Corp. (“Retail”), anH 3 8 38 17 Gump’s By Mail, Inc. (“Direct,” and together with Holdings and Retail, “Debtors” or “Gump’s”18 the Managers (1) oversaw the payment of accrued vacation time to former Gump’s employees, an19 (2) instructed Debtors’ bankruptcy counsel at Garman Turner Gordon LLP (“GTG”) concernin20 dealings with the press, among other matters. Attached hereto as Exhibit 2 is a true and corre21 copy of an email chain, dated August 3, 2018, among myself, Sklar, Harris, and Chacha22 concerning the payment of accrued vacation time to former Gump’s employees 23 6. Sklar and Harris resigned from Holdings’ Board of Managers on August 12, 20124 Attached hereto as Exhibits 3 and 4 are, respectively, true and correct copies of Sklar’s an25 Harris’s resignation emails, dated August 12, 2018. 26 7. In the following months, Wambold, Moylan, and I continued to serve as Manager27 and oversaw Debtors’ operations and bankruptcy petition on a day-to-day basis. Throughout th28 fall of 2018, we ran a process to sell Debtors’ intellectual property assets. We oversaw negotiation

2

1 conducted by GTG and Debtors’ financial advisor, Lincoln Partners Advisors LLC, including wit2 Sterling Business Credit, LLC, one of Debtors’ largest creditors, in that regard. We also continue3 to oversee Debtors’ finances and inventory, and the payment of payroll to Debtors’ employee4 Attached hereto as Exhibit 5 is a true and correct copy of an email chain evidencing Wambold’5 Moylan’s, and my continued, day-to-day management of Holdings in the October-November 2016 period. 7 8. I am a defendant in the adversary proceeding captioned Gump’s Holdings, LLC, 8 al. v. Tony Lopez, et al., Adv. Proc. No. 20-01085-mkn (the “Adversary Proceeding”), brought b9 Debtors. Attached hereto as Exhibit 6 is a true and correct copy of the Complaint Against th10 Managers, Directors and Officers of Gump’s Holdings, LLC, Gump’s Corp., and Gump’s By Mai11 Inc., filed by Debtors in the Adversary Proceeding (the “Complaint”). Wambold, Moylan, Skla12 Harris, and I (but not Chachas) are named as “Director Defendants” in the Complaint. 0 0 1 1 uite 9 13 9. I and, to my knowledge, the other Director Defendants vigorously dispute thS6 d Hughes Parkway, Vegas, Nevada 891702.784.5200 1145 aalplpergoaptiroiantse .t h at Debtors have made against us in the Complaint and will defend against them aowarLas 16 10. To date, Holdings has not indemnified, or offered to indemnify me or any of thH 3 8 38 17 other Director Defendants for any expenses, damages, or other losses that we have incurred (or ma18 incur in the future) in connection with the Adversary Proceeding. 19 11. The other Director Defendants and I have sought coverage for our defense costs i20 connection with the Adversary Proceeding under the Directors, Officers and Organization Liabilit21 Insurance Policy No. 14-MGU-18-A43229 issued by U.S. Specialty Insurance Company. 22 23 24 /// 25 26 /// 27 28 ///

3

(cid:4)(cid:44) (cid:4)(cid:5)(cid:2) (cid:19)(cid:44)(cid:27)(cid:28)(cid:26)(cid:35)(cid:25)(cid:39)(cid:28)(cid:44)(cid:42)(cid:36)(cid:27)(cid:28)(cid:39)(cid:44)(cid:38)(cid:28)(cid:36)(cid:25)(cid:35)(cid:41)(cid:43)(cid:44)(cid:37)(cid:29)(cid:44)(cid:38)(cid:28)(cid:39)(cid:34)(cid:42)(cid:39)(cid:43)(cid:44)(cid:41)(cid:32)(cid:25)(cid:41)(cid:44)(cid:41)(cid:32)(cid:28)(cid:44)(cid:30)(cid:39)(cid:28)(cid:31)(cid:37)(cid:33)(cid:36)(cid:31)(cid:44)(cid:33)(cid:40)(cid:44)(cid:41)(cid:39)(cid:42)(cid:28)(cid:44)(cid:25)(cid:36)(cid:27)(cid:44)(cid:26)(cid:37)(cid:39)(cid:39)(cid:28)(cid:26)(cid:41)(cid:2)(cid:5)(cid:44) (cid:16)(cid:25)(cid:41)(cid:28)(cid:27)(cid:13)(cid:44) (cid:14)(cid:38)(cid:39)(cid:33)(cid:35)(cid:44)(cid:5)(cid:10)(cid:1)(cid:44)(cid:5)(cid:3)(cid:5)(cid:4)(cid:44)(cid:6)(cid:44) (cid:7)(cid:44) (cid:20)(cid:23)(cid:44) (cid:24)(cid:18)(cid:14)(cid:22)(cid:44)(cid:21)(cid:15)(cid:17)(cid:14)(cid:22)(cid:44)(cid:8)(cid:44) (cid:9)(cid:44) (cid:10)(cid:44) (cid:11)(cid:44) (cid:12)(cid:44) (cid:4)(cid:3)(cid:44) (cid:4)(cid:4)(cid:44) (cid:4)(cid:5)(cid:44) (cid:6)(cid:18) (cid:1)(cid:2)(cid:11) (cid:4)(cid:6)(cid:44) (cid:6)(cid:1)(cid:7) (cid:5)(cid:3)(cid:7) (cid:6)(cid:2)(cid:4)(cid:3)(cid:6) (cid:1)(cid:5)(cid:18)(cid:2)(cid:2)(cid:11)(cid:18)(cid:8)(cid:1)(cid:7)(cid:18)(cid:18) (cid:4)(cid:7)(cid:44)(cid:6)(cid:11)(cid:7)(cid:8)(cid:11) (cid:10)(cid:8)(cid:5)(cid:1)(cid:2) (cid:4)(cid:18) (cid:15)(cid:18) (cid:4)(cid:8)(cid:44) (cid:18)(cid:4)(cid:1)(cid:2)(cid:10)(cid:7)(cid:10)(cid:2)(cid:3)(cid:1)(cid:17)(cid:1)(cid:3)(cid:2)(cid:13)(cid:12)(cid:18)(cid:3)(cid:9)(cid:11) (cid:9)(cid:7)(cid:10) (cid:4)(cid:9)(cid:44) (cid:3)(cid:11) (cid:4)(cid:10)(cid:44) (cid:4)(cid:11)(cid:44) (cid:4)(cid:12)(cid:44) (cid:5)(cid:3)(cid:44) (cid:5)(cid:4)(cid:44) (cid:5)(cid:5)(cid:44) (cid:5)(cid:6)(cid:44) (cid:5)(cid:7)(cid:44) (cid:5)(cid:8)(cid:44) (cid:5)(cid:9)(cid:44) (cid:5)(cid:10)(cid:44) (cid:5)(cid:11)(cid:44)

4