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Full title: Interim Order Authorizing (I) Payment of Certain Employee Compensation and Benefits and (II) Maintenance and Continuation of such Benefits and Other Employee-Related Programs (Related Doc # 12) Signed on 9/3/2021. The final hearing will be held on September 24, 2021 at 10:00 a.m. Objections to be filed no later than 4:00 p.m. on September 17, 2021 (So ordered by Judge Bruce A. Harwood ) (amw) (Entered: 09/03/2021)

Document posted on Sep 2, 2021 in the bankruptcy, 6 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

Upon the Emergency Ex Parte Motion of Debtor for Entry of Interim and Final Orders Authorizing (I) Payment of Certain Employee Compensation and Benefits and (II) Maintenance and Continuation of Such Benefits and Other Employee-Related Programs (the “Motion”)2 of the Debtor for entry of an interim order (this “Interim Order”)(i) authorizing, but not directing, the Debtor to pay certain prepetition wages, salaries, and other compensation; (ii) honor any prepetition obligations in respect of, and continue in the ordinary course of business until further notice (but not assume), certain of the Debtor’s paid time off policies, severance practices, and employee benefit plans and programs, as described below; (iii) reimburse Employees for prepetition expenses that Employees incurred on behalf of the Debtor in the ordinary course of business on a prepetition basis; (iv) pay all related prepetition payroll taxes and other deductions, including union benefits; (iv) honor worker’s compensation obligations and related obligations; and (v) pay any prepetition claims of administrators and providers in the ordinary course of business to the extent that any of the foregoing programs are administered, insured, or paid through 1 Except as otherwise set forth herein, the Debtor is authorized, pursuant to Bankruptcy Code sections 105(a) and 363(b), but not obligated or directed, in the reasonable exercise of its business judgment and in the ordinary course of business, to pay and honor amounts on account of Employee Compensation Obligations (exclusive of Withholding Obligations); provided, however, that without prejudice to the Debtor’s right to seek additional payments at the Final Hearing (as defined below) or any other time subsequent thereto, the Debtor shall not make any payments in excess of $13,650 on account of prepetition Employee Compensation Obligations or to any one Employee or Contractors, respectively, absent further order of the Court. The Debtor is authorized, but not directed, to continue to honor its Reimbursable Expense Obligations including any prepetition obligations, and to continue in accordance with the Debtor’s stated policies and prepetition practices; provided, however, that satisfaction of prepetition Reimbursable Expense Obligations shall only be allowed to the extent Employees have paid for such expenses directly from their own funds or are otherwise personally liable for such expenses; provided, further, that payments on account of prepetition Reimbursable Expense Obligations the Debtor shall not exceed $1,000.Any objection to the entry of a final order granting the relief requested in the Motion shall be filed with the Court and served on, no later than September 17, 2021, at 4:00 p.m. (Eastern Time): (i) proposed counsel to the Debtor (a) Polsinelli PC, 600 Third Avenue, 42nd Floor, New York, New York 10016, Attn: Jeremy R. Johnson (jeremy.johnson@polsinelli.com) and Attn: Stephen J. As

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF NEW HAMPSHIRE In re: ) Chapter 11 ) Prospect-Woodward Home ) Case No. 21-10523 (BAH) dba Hillside Village, ) ) Re: Docket No. 12 Debtor. 1 ) ) INTERIM ORDER AUTHORIZING (I) PAYMENT OF CERTAIN EMPLOYEE COMPENSATION AND BENEFITS AND (II) MAINTENANCE AND CONTINUATION OF SUCH BENEFITS AND OTHER EMPLOYEE-RELATED PROGRAMS Upon the Emergency Ex Parte Motion of Debtor for Entry of Interim and Final Orders Authorizing (I) Payment of Certain Employee Compensation and Benefits and (II) Maintenance and Continuation of Such Benefits and Other Employee-Related Programs (the “Motion”)2 of the Debtor for entry of an interim order (this “Interim Order”) (i) authorizing, but not directing, the Debtor to pay certain prepetition wages, salaries, and other compensation; (ii) honor any prepetition obligations in respect of, and continue in the ordinary course of business until further notice (but not assume), certain of the Debtor’s paid time off policies, severance practices, and employee benefit plans and programs, as described below; (iii) reimburse Employees for prepetition expenses that Employees incurred on behalf of the Debtor in the ordinary course of business on a prepetition basis; (iv) pay all related prepetition payroll taxes and other deductions, including union benefits; (iv) honor worker’s compensation obligations and related obligations; and (v) pay any prepetition claims of administrators and providers in the ordinary course of business to the extent that any of the foregoing programs are administered, insured, or paid through 1 The last four digits of the Debtor’s federal taxpayer identification are 2146. The address of the Debtor’s headquarters is 95 Wyman Road, Keene, New Hampshire 03431. 2 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Motion.

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a third-party administrator or provider; the Court having reviewed the Motion and the First Day Declaration; and the Court having jurisdiction over this matter pursuant to 28 U.S.C. 157 and §§ 1334(b); and the Court having found that this matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); and the Court having found that venue of this proceeding and the Motion in this district is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and the Court having determined that the relief requested in the Motion is in the best interests of the Debtor, the estate, creditors, and other parties in interest; and it appearing that proper and adequate notice of the Motion has been given and that no other or further notice is necessary; and upon the record herein; and after due deliberation thereon; and good and sufficient cause appearing therefore, it is hereby ORDERED, ADJUDGED, AND DECREED THAT: 1. The Motion is GRANTED on an interim basis as set forth herein. 2. The Debtor is authorized, but not directed, to honor and pay the Employee Wages and Benefits, consisting of accrued wages, salaries and other compensation (excluding reimbursable expenses and vacation pay), earned prior to the Petition Date, in accordance with the Debtor’s stated policies and prepetition practices and in the ordinary course of the Debtor’s business, including, but not limited to, amounts that have been earned, accrued, or vested prior to the Petition Date. The Debtor is authorized, but not directed, to continue the programs and policies described in the Motion on a postpetition basis and to alter, modify or discontinue such programs and policies as it deems necessary or appropriate in the ordinary course of business, without further notice to or order of the Court. 3. Except as otherwise set forth herein, the Debtor is authorized, pursuant to Bankruptcy Code sections 105(a) and 363(b), but not obligated or directed, in the reasonable exercise of its business judgment and in the ordinary course of business, to pay and honor amounts

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on account of Employee Compensation Obligations (exclusive of Withholding Obligations); provided, however, that without prejudice to the Debtor’s right to seek additional payments at the Final Hearing (as defined below) or any other time subsequent thereto, the Debtor shall not make any payments in excess of $13,650 on account of prepetition Employee Compensation Obligations or to any one Employee or Contractors, respectively, absent further order of the Court. 4. The Debtor and any applicable third parties are authorized to continue to allocate and distribute Withholding Obligations to the appropriate third-party recipients or taxing authorities in accordance with the Debtor’ stated policies and prepetition practices. 5. The Debtor is authorized, but not directed, to continue the Debtor’s ET Policy (excluding payment of accrued ET upon termination) in accordance with the Debtor’s prepetition practices and applicable law; provided, however, that payments to any terminated Employee on account of ET accrued and due prepetition, in addition to any other amounts received by such Employee hereunder, shall not exceed $13,650. 6. The Debtor is authorized, but not directed, to continue to honor its Reimbursable Expense Obligations including any prepetition obligations, and to continue in accordance with the Debtor’s stated policies and prepetition practices; provided, however, that satisfaction of prepetition Reimbursable Expense Obligations shall only be allowed to the extent Employees have paid for such expenses directly from their own funds or are otherwise personally liable for such expenses; provided, further, that payments on account of prepetition Reimbursable Expense Obligations the Debtor shall not exceed $1,000. 7. The Debtor is authorized, but not directed, to honor the Employee Benefits Plans in the ordinary course of business and in accordance with the Debtor’s prepetition policies and

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programs, and to make any necessary contributions to such programs and pay any unpaid premium, claim, or amount owed as of the Petition Date with respect thereto. 8. The Debtor is authorized, but not directed, to pay all processing and administrative fees associated with and all costs and expenses incidental to payment of the Compensation Obligations or the Employee Benefits Obligations. 9. Nothing in the Motion or this Interim Order, nor as a result of any payment made pursuant to this Interim Order, shall be deemed or construed as an admission as to the validity or priority of any claim against the Debtor, an approval or assumption of any agreement, contract or lease pursuant to Bankruptcy Code section 365, or a waiver of the right of the Debtor, or shall impair the ability of the Debtor, or any other party in interest, to the extent applicable, to contest the validity and amount of any payment made pursuant to this Interim Order. 10. Each of the processors are authorized to receive, process, honor, and pay all checks and transfers issued or requested by the Debtor, to the extent that sufficient funds are on deposit in the applicable accounts, in accordance with this Interim Order and any other order of this Court. 11. The Debtor is authorized to issue postpetition checks, or to effect postpetition fund transfer requests, in replacement of any checks or fund transfer requests in connection with any Employee Obligations that are dishonored or rejected. 12. The Debtor is authorized to take all actions necessary to effectuate the relief granted pursuant to this Interim Order in accordance with the Motion. 13. Nothing in the Motion or this Interim Order shall be construed to authorize any severance payments to insiders in excess of the limits set forth in Bankruptcy Code section 503(c)(2). 14. The requirements set forth in Bankruptcy Rule 6003(b) are satisfied.

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15. Notice of the Motion as provided therein shall be deemed good and sufficient and the requirements of Bankruptcy Rule 6004(a) and the Local Rules are satisfied by such notice. 16. Notwithstanding any Bankruptcy Rule (including, but not limited to, Bankruptcy Rule 6004(h)) or Local Bankruptcy Rule that might otherwise delay the effectiveness of this Interim Order, the terms and conditions of this Interim Order shall be immediately effective and enforceable upon its entry. 17. The final hearing (the “Final Hearing”) to consider the entry of a final order granting the relief requested in the Motion shall be held on September 24, 2021 at 10:00 a.m. (Eastern Time). 18. Any objection to the entry of a final order granting the relief requested in the Motion shall be filed with the Court and served on, no later than September 17, 2021, at 4:00 p.m. (Eastern Time): (i) proposed counsel to the Debtor (a) Polsinelli PC, 600 Third Avenue, 42nd Floor, New York, New York 10016, Attn: Jeremy R. Johnson (jeremy.johnson@polsinelli.com) and Attn: Stephen J. Astringer (sastringer@polsinelli.com); and (b) Hinckley, Allen & Snyder LLP, 650 Elm Street, Manchester, New Hampshire 03101, Attn: Daniel M. Deschenes (ddeschenes@hinckleyallen.com) and 28 State Street, Boston, Massachusetts 02109, Attn: Jennifer V. Doran (jdoran@hinckleyallen.com); (ii) counsel to UMB Bank, as indenture trustee, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., One Financial Center, Boston, Massachusetts 02111, Attn: Daniel S. Bleck (dsbleck@mintz.com); (iii) the Office of the United States for the District of New Hampshire, 53 Pleasant Street, Suite 2300, Concord, New Hampshire 03301, Attn: Kimberly Bacher (kimberly.bacher@usdoj.gov); and (iv) counsel to any official committee appointed in the Chapter 11 Case

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19. The Debtor is authorized to take all actions it deems necessary to effectuate therelief granted pursuant to this Interim Order in accordance with the Motion. 20. All payments made pursuant to this Interim Order shall be subject to any interim orfinal order entered by the Court governing the Debtor’s right to the use the Bond Trustee’s cash collateral, including the budget attached thereto. 21. Notwithstanding any Bankruptcy Rule that might otherwise delay the effectivenessof this Interim Order, the terms and conditions of this Interim Order shall be immediately effective and enforceable upon its entry. 22. This Court shall retain jurisdiction over any and all matters arising from theinterpretation, implementation, or enforcement of this Interim Order. September 03, 2021 Dated: __________________________ /s/ Bruce A. Harwood Bruce A. Harwood Chief Bankruptcy Judge

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