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Full title: Motion to Extend Debtor's Third Motion For Entry Of An Order (I) Extending The Debtor's Time To File Notices Of Removal Of Claims And Causes Of Action Related To The Debtor's Chapter 11 Case And (II) Granting Related Relief Filed by Klausner Lumber Two LLC. Hearing scheduled for 6/16/2021 at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. Objections due by 5/27/2021. (Attachments: # 1 Notice # 2 Proposed Form of Order) (Butz, Daniel) (Entered: 05/13/2021)

Document posted on May 12, 2021 in the bankruptcy, 7 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

By this motion (the “Motion”), the Debtor seeks entry of an order, substantially in the form attached hereto as Exhibit A, (i) extending the Debtor’s time to file notices of removal of claims and causes of action that relate to this chapter 11 case and that are pending as of the Petition Date (the “Removal Deadline”) by approximately four (4) months through and including September 14, 2021, and (ii) granting related relief.The bases for the relief requested herein are Bankruptcy Rules 9006(b)(1) and 9027(a)(2) of the Federal Rules of Bankruptcy Procedures (the “Bankruptcy Rule(s)”) and Local Rule 9006-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the “Local Rule(s)”).A party may remove any claim or cause of action in a civil action other than a proceeding before the United States Tax Court or a civil action by a 2 While the Debtor believes all relevant Actions have been resolved/dismissed, the Debtor seeks the relief herein out of an abundance of caution. governmental unit to enforce such governmental unit’s police or regulatory power, to the district court for the district where such civil action is pending, if such district court has jurisdiction of such claim or cause of action under section 1334 of this title.Since the Petition Date, the Debtor has devoted significant resources to focusing on certain pressing and essential matters such as: (i) stabilizing the businesses; (ii) negotiating, seeking court approval of and addressing various issues relating to the Debtor’s debtor-in-possession financing; (iii) addressing various operational and legal matters related to the financing and the sale process; (iv) negotiating settlements with Halifax County and Carolina Sawmills, L.P. which enabled to the Debtor to sell its assets as a going-concern and preparing documentation and pleadings related to same (v) analyzing and preparing pleadings in connection with various pending litigation and contested matters; (vi) dealing with various creditor issues and coordinating with various requests and pleadings filed by the Creditors’ Committee; (vii) resolving objections lodged by various parties; (viii) resolving a motion for relief from the automatic stay; (ix) preparing and filing the Debtor’s Schedules of Assets and Liabilities and Statements of Financial Affairs; (x) preparing and filing the Debtor’s monthly operating reports; (xi) establishing bidding procedures pursuant to which the Debtor conducted a robust sale process, including negotiating asset purchase agreements with the stalking horse bidder and successful purchaser for the debtor’s assets, conducting an auction and closing on the sale of substantially all of the Debtor’s assets; (xii) reviewing and reconciling claims filed in the chapter 11 case; and (xiii) meeting the general requirements under the chapter 11 process.

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: Chapter 11 KLAUSNER LUMBER TWO LLC, Case No. 20-11518 (KBO) Hearing Date: June 16, 2021 at 10:00 a.m. (ET) Debtor.1 Objection Deadline: May 27, 2021 at 4:00 p.m. (ET) DEBTOR’S THIRD MOTION FOR ENTRY OF AN ORDER (I) EXTENDING THE DEBTOR’S TIME TO FILE NOTICES OF REMOVAL OF CLAIMS AND CAUSES OF ACTION RELATED TO THE DEBTOR’S CHAPTER 11 CASE AND (II) GRANTING RELATED RELIEF The above-captioned debtor and debtor in possession (the “Debtor”) hereby respectfully moves as follows: Relief Requested 1. By this motion (the “Motion”), the Debtor seeks entry of an order, substantially in the form attached hereto as Exhibit A, (i) extending the Debtor’s time to file notices of removal of claims and causes of action that relate to this chapter 11 case and that are pending as of the Petition Date (the “Removal Deadline”) by approximately four (4) months through and including September 14, 2021, and (ii) granting related relief. Jurisdiction and Venue 2. The United States Bankruptcy Court for the District of Delaware (the “Court”) has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334 and the Amended Standing Order of Reference from the United States District Court for the District of Delaware, dated 1 The last four digits of the Debtor’s EIN are 4897. The Debtor’s mailing address is 260 Piper Lane, Enfield, NC 27823.

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February 29, 2012. The Debtor confirms its consent to the entry of a final order by the Court in connection with this motion to the extent that it is later determined that the Court, absent consent of the parties, cannot enter final orders or judgments in connection herewith consistent with Article III of the United States Constitution. 3. The bases for the relief requested herein are Bankruptcy Rules 9006(b)(1) and 9027(a)(2) of the Federal Rules of Bankruptcy Procedures (the “Bankruptcy Rule(s)”) and Local Rule 9006-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the “Local Rule(s)”). Background 4. On June 10, 2020 (the “Petition Date”), the Debtor filed a voluntary petition under chapter 11 of the Bankruptcy Code (the “Case”). The Debtor continues to operate its business and manage its properties as debtor in possession pursuant to §§ 1107(a) and 1108 of the Bankruptcy Code. 5. On June 25, 2020 the United States Trustee (the “U.S. Trustee”) for the District of Delaware appointed an official committee of unsecured creditors (the “Creditors’ Committee”). No party has requested the appointment of a trustee or examiner in the Case. 6. The Debtor is the owner of a state-of-the-art timber sawmill in Enfield, Halifax County, North Carolina. 7. Additional detail regarding the Debtor, its business, the events leading to the commencement of this case and the facts and circumstances supporting the relief requested herein is set forth in the Declaration of Robert Prusak in Support of Debtor’s Bankruptcy Filing (D.I. 6). 8. As of the Petition Date, the Debtor was a party to certain judicial and/or administrative proceedings in various courts and/or administrative agencies that were stayed under

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the Bankruptcy Code (collectively, the “Actions”). Some of the Actions may be subject to removal pursuant to 28 U.S.C. § 1452. As such, the Debtor may find it appropriate and beneficial to the estate to remove certain of the Actions to federal court, and the Debtor requires additional time to make such determination.2 9. On August 26, 2020, the Debtor filed a Motion for Entry of An Order (I) Extending the Debtor's Time to File Notices of Removal of Claims and Causes of Action Related to the Debtor's Chapter 11 Case and (II) Granting Related Relief [D.I. 164] (the “First Removal Motion”), whereby the Debtor sought to extend the period of time to remove Actions to federal court through and including January 11, 2021. The Court entered and Order granting the First Removal Motion on September 14, 2020 [D.I. 234]. 10. On January 11, 2021, the Debtor filed its Second Motion for Entry of An Order (I) Extending the Debtor's Time to File Notices of Removal of Claims and Causes of Action Related to the Debtor's Chapter 11 Case and (II) Granting Related Relief [D.I. 548] (the “Second Removal Motion”), whereby the Debtor sought to extend the period of time to remove Actions to federal court through and including May 14, 2021. The Court entered and Order granting the Second Removal Motion on January 27, 2021 [D.I. 579]. Basis for Relief Requested 11. Bankruptcy Rule 9027 and 28 U.S.C. § 1452 govern the removal of claims and causes of action pending as of the Petition Date. Specifically, 28 U.S.C. § 1452 provides, in part, that for claims related to bankruptcy cases: A party may remove any claim or cause of action in a civil action other than a proceeding before the United States Tax Court or a civil action by a 2 While the Debtor believes all relevant Actions have been resolved/dismissed, the Debtor seeks the relief herein out of an abundance of caution.

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governmental unit to enforce such governmental unit’s police or regulatory power, to the district court for the district where such civil action is pending, if such district court has jurisdiction of such claim or cause of action under section 1334 of this title. 28 U.S.C. § 1452(a) (2018). 12. Bankruptcy Rule 9027(a)(2) sets forth the time for a debtor to file notices to remove claims or causes of action, and provides that: If the claim or cause of action in a civil action is pending when a case under the Code is commenced, a notice of removal may be filed only within the longest of (A) 90 days after the order for relief in the case under the Code, (B) 30 days after the entry of an order terminating a stay, if the claim or cause of action in a civil action has been stayed under § 362 of the Code, or (C) 30 days after a trustee qualifies in a chapter 11 reorganization case but not later than 180 days after the order for relief. Fed. R. Bankr. P. 9027(a)(2). 13. Bankruptcy Rule 9006(b)(1) permits the Court to extend the Removal Deadline “for cause shown,” and provides, in part, that: Except as provided in paragraphs (2) and (3) of this subdivision, when an act is required or allowed to be done at or within a specified period by these rules or by a notice given thereunder or by order of court, the court for cause shown may at any time in its discretion (1) with or without motion or notice order the period enlarged if the request therefor is made before the expiration of the period originally prescribed or as extended by a previous order. Fed. R. Bankr. P. 9006(b)(1). 14. Local Rule 9006-2 provides that “if a motion to extend the time to take any action is filed before the expiration of the period prescribed . . . the time shall automatically be extended until the Court acts on the motion, without the necessity for the entry of a bridge order.” Del. Bankr. L.R. 9006-2. 15. It is well established that this Court has authority to grant the relief requested by the Motion and extend the Removal Deadline. See, e.g., Pacor, Inc. v. Higgins, 743 F.2d 984,

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996 (3d Cir. 1984) (holding that the deadline for removal of actions may be extended pursuant to Bankruptcy Rule 9006); Raff v. Gordon, 58 B.R. 988, 990 (E.D. Pa. 1986) (holding that Bankruptcy Rule 9006 authorizes expansion of time to file notice of removal); Jandous Elec. Constr. Corp. v. City of New York (In re Jandous Elec. Const. Corp.), 106 B.R. 48, 49–50 (Bankr. S.D.N.Y. 1989) (holding that a court may extend the time in which to file motions to remove civil actions pursuant to Bankruptcy Rule 9006). Indeed, requests to extend the time to file notices of removal are routinely granted in this district. See, e.g., In re Mishti Holdings LLC, Case No. 19-11813 (CSS) (Bankr. D. Del. Dec. 4, 2019); In re Overseas Shipholding Group, Inc., Case No. 12-20000 (PJW) (Bankr. D. Del. Mar. 5, 2013); In re WP Steel Venture LLC, Case No. 12-11661 (KJC) (Bankr. D. Del. Jan. 11, 2013); In re DDMG Estate, Case No. 12-12568 (BLS) (Bankr. D. Del. Jan. 8, 2013); In re Powermate Holding Corp., Case No. 08-10498 (KG) (Bankr. D. Del. Dec. 11, 2012); In re TWTR, Inc., Case No. 07-10787 (PJW) (Bankr. D. Del. Apr. 3, 2012). 16. The Removal Deadline currently expires on May 14, 2021 absent further orders of this Court. 17. Since the Petition Date, the Debtor has devoted significant resources to focusing on certain pressing and essential matters such as: (i) stabilizing the businesses; (ii) negotiating, seeking court approval of and addressing various issues relating to the Debtor’s debtor-in-possession financing; (iii) addressing various operational and legal matters related to the financing and the sale process; (iv) negotiating settlements with Halifax County and Carolina Sawmills, L.P. which enabled to the Debtor to sell its assets as a going-concern and preparing documentation and pleadings related to same (v) analyzing and preparing pleadings in connection with various pending litigation and contested matters; (vi) dealing with various creditor issues and coordinating with various requests and pleadings filed by the Creditors’ Committee; (vii) resolving objections lodged

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by various parties; (viii) resolving a motion for relief from the automatic stay; (ix) preparing and filing the Debtor’s Schedules of Assets and Liabilities and Statements of Financial Affairs; (x) preparing and filing the Debtor’s monthly operating reports; (xi) establishing bidding procedures pursuant to which the Debtor conducted a robust sale process, including negotiating asset purchase agreements with the stalking horse bidder and successful purchaser for the debtor’s assets, conducting an auction and closing on the sale of substantially all of the Debtor’s assets; (xii) reviewing and reconciling claims filed in the chapter 11 case; and (xiii) meeting the general requirements under the chapter 11 process. Given these tasks, the Debtor has not yet concluded its analysis as to whether removal of any Actions may be appropriate. Accordingly, out of an abundance of caution, the Debtor believe it is in the best interest of its estate to seek an extension of the time prescribed under Bankruptcy Rule 9027(a), protecting its right to remove the Actions if it deems removal appropriate. 18. To the extent any claim or cause of action exists, the other parties to any such claims or causes of action pending as of the Petition Date will suffer no prejudice from the relief sought herein. Prepetition causes of action against the Debtor are stayed by operation of the automatic stay under section 362(a) of the Bankruptcy Code. As such, preserving the Debtor’s ability to remove claims and causes of action pending as of the Petition Date, pursuant to Bankruptcy Rule 9027(a)(2), imposes no delay or unnecessary burdens on the counterparties to the Actions, if any. Notice 19. Notice of this Motion will be given to: (a) the U.S. Trustee, (b) counsel to the Debtor’s proposed debtor-in-possession lender, (c) counsel to the Debtor’s prepetition lender, (d) counsel to the Creditor’s Committee, and (e) all parties who have requested notice in this chapter

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11 case pursuant to Local Rule 2002-1(b). The Debtor respectfully submits that no other or further notice of this Motion is required under the circumstances. WHEREFORE, the Debtor respectfully requests that the Court enter an order, substantially in the form attached hereto as Exhibit A, granting the relief requested in the Motion, and grant such other relief as is just and proper under the circumstances. Dated: May 13, 2021 MORRIS, NICHOLS, ARSHT & TUNNELL LLP Wilmington, Delaware /s/ Daniel B. Butz Robert J. Dehney (No. 3578) Eric D. Schwartz (No. 3134) Daniel B. Butz (No. 4227) Nader A. Amer (No. 6635) 1201 North Market Street, 16th Floor P.O. Box 1347 Wilmington, Delaware 19899-1347 Telephone: (302) 658-9200 Facsimile: (302) 658-3989 Email: dbutz@mnat.com namer@mnat.com - and - WESTERMAN BALL EDERER MILLER ZUCKER & SHARFSTEIN, LLP Thomas A. Draghi (admitted pro hac vice) Alison M. Ladd (admitted pro hac vice) 1201 RXR Plaza Uniondale, NY 11556 Tel: 516-622-9200 tdraghi@westermanllp.com aladd@westermanllp.com Counsel for Debtor and Debtor in Possession

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