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Full title: Proposed Order Authorizing (I) Continued Use of Existing Cash Management System, (II) Maintenance of Existing Bank Accounts, (III) Continued Use of Existing Business Forms, and (IV) Maintenance of Existing Deposit Practices Filed by Debtor The Prospect-Woodward Home (RE: related document(s) 18 Motion (BK) filed by Debtor The Prospect-Woodward Home) (Graham, Owen) (Entered: 09/02/2021)

Document posted on Sep 1, 2021 in the bankruptcy, 7 pages and 0 tables.

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(i) authorizing, but not directing, the Debtor to continue to maintain and use the existing cash management system, including maintenance of existing bank accounts, checks, and business forms; (ii) granting the Debtor a waiver of certain bank account and related requirements of the U.S. Trustee to the extent that such requirements are inconsistent with the Debtor’s practices under the existing cash management system or other actions described in the Motion or this Interim Order; and (iii) authorizing, but not directing, the Debtor to continue to maintain and use the existing deposit practices notwithstanding the provisions of Bankruptcy Code section 345(b); 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 1 The Debtor is authorized to (a) continue to use any and all of the Debtor Bank Accounts in existence as of the Petition Date, including, but not limited to, the Debtor Bank Accounts identified on Exhibit C to the Motion, in the same manner and with the same account numbers, styles, and document forms as are currently employed; (b) deposit funds in and withdraw funds from the Debtor Bank Accounts in the ordinary course by all usual means, including checks, wire transfers, drafts, and electronic fund transfers or other items presented, issued, or drawn on the Debtor Bank Accounts; (c) pay ordinary course bank fees in connection with the Debtor Bank Accounts, including any fees arising prior to the Petition Date; (d) perform the obligations under the documents and agreements governing the Debtor Bank Accounts; and (e) for all purposes, treat the Debtor Bank Accounts as accounts of the Debtor in its capacity as debtor in possession.In each instance where the Debtor holds Debtor Bank Accounts at banks that are party to a Uniform Depository Agreement with the U.S. Trustee, within fifteen (15) days of entry of this Interim Order, the Debtor shall (a) contact each bank, (b) provide the bank with the Debtor’s employer identification numbers, and (c) identify each of its bank accounts held at such banks as being held by a debtor in possession in a bankruptcy case.In each instance where the Debtor holds Debtor Bank Accounts at banks that are not a party to a Uniform Depository Agreement with the U.S. Trustee, the Debtor shall use good faith efforts to cause the banks to execute a Uniform Depository Agreement in a form prescribed by the U.S. Trustee within forty-five (45) days of the date of this Interim Order.Nunc pro tunc to the Petition Date, and subject to the terms of this Interim Order, all Banks at which the Debtor Bank Accounts are maintained are authorized and directed to continue to administer, service, and maintain the Debtor Bank Accounts as such accounts were administered, serviced, and maintained prepetition, without interruption and in the ordinary course (including making deductions for ban

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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. 18 Debtor. 1 ) ) INTERIM ORDER AUTHORIZING (I) CONTINUED USE OF EXISTING CASH MANAGEMENT SYSTEM, (II) MAINTENANCE OF EXISTING BANK ACCOUNTS, (III) CONTINUED USE OF EXISTING BUSINESS FORMS, AND (IV) MAINTENANCE OF EXISTING DEPOSIT PRACTICES Upon the Emergency Ex Parte Motion of Debtor for Interim and Final Orders Authorizing (I) Continued Use of Existing Cash Management System, (II) Maintenance of Existing Bank Accounts, (III) Continued Use of Existing Business Forms, and (IV) Maintenance of Existing Deposit Practices motion (the “Motion”)2 of the Debtor for entry of an (this “Order”) (i) authorizing, but not directing, the Debtor to continue to maintain and use the existing cash management system, including maintenance of existing bank accounts, checks, and business forms; (ii) granting the Debtor a waiver of certain bank account and related requirements of the U.S. Trustee to the extent that such requirements are inconsistent with the Debtor’s practices under the existing cash management system or other actions described in the Motion or this Interim Order; and (iii) authorizing, but not directing, the Debtor to continue to maintain and use the existing deposit practices notwithstanding the provisions of Bankruptcy Code section 345(b); 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 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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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 to continue to use the existing Cash Management System and shall maintain through the use of detailed records reflecting all transfers of funds under the terms and conditions provided for by the existing agreements with the institutions participating in the Cash Management System, except as modified by this Interim Order. In connection with the ongoing use of the Cash Management System, the Debtor shall continue to maintain records with respect to all transfers of cash so that all transactions may be readily ascertained, traced, and recorded properly. The Debtor must continue to maintain current records of all transfers of cash so that all transactions can be readily ascertained, traced, properly recorded, and distinguished between prepetition and postpetition transactions. 3. The Debtor is authorized to (a) continue to use any and all of the Debtor Bank Accounts in existence as of the Petition Date, including, but not limited to, the Debtor Bank Accounts identified on Exhibit C to the Motion, in the same manner and with the same account numbers, styles, and document forms as are currently employed; (b) deposit funds in and withdraw funds from the Debtor Bank Accounts in the ordinary course by all usual means, including checks,

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wire transfers, drafts, and electronic fund transfers or other items presented, issued, or drawn on the Debtor Bank Accounts; (c) pay ordinary course bank fees in connection with the Debtor Bank Accounts, including any fees arising prior to the Petition Date; (d) perform the obligations under the documents and agreements governing the Debtor Bank Accounts; and (e) for all purposes, treat the Debtor Bank Accounts as accounts of the Debtor in its capacity as debtor in possession. 4. In each instance where the Debtor holds Debtor Bank Accounts at banks that are party to a Uniform Depository Agreement with the U.S. Trustee, within fifteen (15) days of entry of this Interim Order, the Debtor shall (a) contact each bank, (b) provide the bank with the Debtor’s employer identification numbers, and (c) identify each of its bank accounts held at such banks as being held by a debtor in possession in a bankruptcy case. In each instance where the Debtor holds Debtor Bank Accounts at banks that are not a party to a Uniform Depository Agreement with the U.S. Trustee, the Debtor shall use good faith efforts to cause the banks to execute a Uniform Depository Agreement in a form prescribed by the U.S. Trustee within forty-five (45) days of the date of this Interim Order. The U.S. Trustee’s rights to seek further relief from this Court on notice in the event that the aforementioned banks are unwilling to execute a Uniform Depository Agreement in a form prescribed by the U.S. Trustee are fully reserved. 5. The Debtor is authorized to continue to use existing correspondence and other business forms without alteration or change and without the designation “Debtor in Possession” or a bankruptcy case number imprinted upon them. Notwithstanding the foregoing, the Debtor shall, when printing checks, require the designation “Debtor in Possession” and the corresponding bankruptcy case number to be imprinted on all post-petition checks starting no later than ten (10) days of the date of entry of this Interim Order.

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6. The Debtor is authorized to continue to utilize all third-party providers necessary for the administration of the Cash Management System, including third party payroll processors. In addition, the Debtor is authorized, but not directed, to pay all prepetition or postpetition amounts due to such third-party providers. 7. Nunc pro tunc to the Petition Date, and subject to the terms of this Interim Order, all Banks at which the Debtor Bank Accounts are maintained are authorized and directed to continue to administer, service, and maintain the Debtor Bank Accounts as such accounts were administered, serviced, and maintained prepetition, without interruption and in the ordinary course (including making deductions for bank fees and expenses), and, when requested by the Debtor in its sole discretion, to honor any and all checks, drafts, wires, electronic fund transfers, or other items presented, issued, or drawn on the Debtor Bank Accounts on account of a claim against the Debtor arising on or after the Petition Date; provided, however, that unless otherwise ordered by the Court, no checks, drafts, electronic funds transfers (excluding any electronic funds transfer that the Banks are obligated to settle), or other items presented, issued, or drawn on the Debtor Bank Accounts on account of a claim against the Debtor arising prior to the Petition Date shall be honored. 8. Each Bank shall implement reasonable handling procedures designed to effectuate the terms of this Interim Order. No Bank that implements such handling procedures and then honors a prepetition check or item drawn on any account that is the subject of this Interim Order (a) at the direction of the Debtor to honor such prepetition check or item, (b) in the good faith belief that the Court has authorized such prepetition check or item to be honored, or (c) as a result of a good faith error made despite implementation of such handling procedures, shall be deemed

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to be liable to the Debtor or the estate on account of such prepetition check or item being honored postpetition or otherwise in violation of this Interim Order. 9. The Debtor is authorized to deposit funds in accordance with existing practices under the Cash Management System as in effect as of the Petition Date. The Debtor shall have forty-five (45) days (or such additional time as the U.S. Trustee may agree to) from the Petition Date (the “Extension Period”) within which to either come into compliance with Bankruptcy Code section 345(b) or to make such other arrangements as agreed with the U.S. Trustee. Such extension is without prejudice to the Debtor’s rights to request a further extension of the Extension Period or a final waiver of the requirements under Bankruptcy Code section 345(b). 10. Neither the provisions contained herein, nor any actions or payments made by the Debtor pursuant to this Interim Order, shall be deemed an admission as to the validity of the underlying obligation or a waiver of any rights the Debtor may have to dispute such obligation on any ground that applicable law permits. 11. 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 order shall be immediately effective and enforceable upon its entry. 12. Nothing contained herein and no action by the Debtor or transfer of any funds pursuant hereto shall negate, reduce, waive, release, or otherwise affect the claims of the Savings Bank of Walpole or UMB Bank, N.A., as bond trustee (the “Bond Trustee”), as secured creditors, or their secured positions and/or liens pursuant to their respective bond and loan documents, and/or their rights based upon doctrines of setoff, recoupment or otherwise, the transfer of the funds in

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question being pursuant to this Court’s order with the Bank’s rights and the Bond Trustee’s rights being preserved in full irrespective of the transfer of such funds. 13. The Debtor, SBW, and the Bond Trustee reserve all rights with respect to the Motion and the relief granted in this Interim Order. 14. This Court shall retain jurisdiction with respect to all matters arising from or related to the implementation and/or interpretation of this Interim Order. 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). 15. 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); (iv) counsel to any official committee appointed in the Chapter 11 Case. 16. Nothing in the Motion or this Interim Order, or the Debtor’s payment of any amount pursuant to this Interim Order, shall be deemed or construed as: (a) an admission as to the validity

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of any claim or lien against the Debtor or the estate; (b) a waiver of the Debtor’s rights to dispute any claim or lien; (c) an approval or assumption of any agreement, contract, or lease pursuant to Bankruptcy Code section 365; (d) an admission of the priority status of any claim, whether under Bankruptcy Code section 503(b)(9) or otherwise; or (e) a modification of the Debtor’s rights to seek relief under any section of the Bankruptcy Code on account of any amounts owed or paid to any third party. 17. All payments made pursuant to this Interim Order shall be subject to any interim or final order entered by the Court governing the Debtor’s right to the use the Bond Trustee’s cash collateral, including the budget attached thereto. 18. The Debtor is hereby authorized to take such actions and to execute such documents as may be necessary to implement the relief granted by this Interim Order. 19. This Court shall retain jurisdiction over any and all matters arising from the interpretation, implementation, or enforcement of this Order. Dated: _______________________________ Bruce A. Harwood Chief Bankruptcy Judge

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