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Full title: Objection to confirmation of plan (RE: related document(s)700 Chapter 11 plan) filed by Interested Party State of Texas. (Binford, Jason)

Document posted on Mar 9, 2021 in the bankruptcy, 5 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

20- 32633-SGJ § Studio Movie Grill Holdings, LLC, et al.,1 § Chapter 11 § Debtors. § Jointly Administered LIMITED OBJECTION OF THE STATE OF TEXAS TO THE DEBTORS’ SECOND AMENDED JOINT PLAN OF REORGANIZATION FOR STUDIO MOVIE GRILL HOLDINGS, LLC AND JOINTLY ADMINISTERED DEBTORS AND PLAN SUPPLEMENTS 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: Studio Movie Grill Holdings, LLC (6546)(“SMG Holdings”); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793); Movie Grill Concepts IV, Ltd. (1454); Movie Grill Concepts IX, LLC (3736); Movie Grill Concepts VI, Ltd. (6895); Movie Grill Concepts VII, LLC (2291); Movie Grill Concepts X, LLC (6906); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XII, LLC (6040); Movie Grill Concepts XIII, LLC (5299); Movie Grill Concepts XIV, LLC (4709); Movie Grill Concepts XIX, LLC (9646); Movie Grill Concepts XL, LLC (4454); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLII, LLC (2309); Movie Grill Concepts XLIII, LLC (9721); Movie Grill Concepts XLIV, LLC (8783); Movie Grill Concepts XLV, LLC (2570); Movie Grill Concepts XV, LLC (4939); Movie Grill Concepts XVI, LLC (1033); Movie Grill Concepts XVII, LLC (1733); Movie Grill Concepts XVIII, LLC (8322); Movie Grill Concepts XX, LLC (7300); Movie Grill Concepts XXI, LLC (1508); Movie Grill Concepts XXII, LLC (6748); Movie Grill Concepts XXIV, LLC (5114); Movie Grill Concepts XXIX, LLC (5857); Movie Grill Concepts XXV, LLC (4985); Movie Grill Concepts XXVI, LLC (5233); Movie Grill Concepts XXVII, LLC (4427); Movie Grill Concepts XXVIII, LLC (1554); Movie Grill Concepts XXX, LLC (1431); Movie Grill Concepts XXXI, LLC (3223); Movie Grill Concepts XXXII, LLC (0196); Movie Grill Concepts XXXIII, LLC (1505); Movie Grill Concepts XXXIV, LLC (9770); Movie Grill Concepts XXXIX, LLC (3605); Movie Grill Concepts XXXV, LLC (0571); Movie Grill Concepts XXXVI, LLC (6927); Movie Grill Concepts XXXVII, LLC (6401); Movie Grill Concepts XXXVIII, LLC (9657); Movie Grill Concepts XXIII, LLC (7893); Studio Club, LLC (3023); Studio Club IV, LLC (9440); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLVI, LLC (2344); Movie Grill Concepts XLVII, LLC (5866); Movie Grill Concepts XLVIII, LLC (8601); Movie Grill Concepts XLIX, LLC (0537); Movie Grill Concepts L, LLC (5940); Movie Grill Concepts LI, LLC (7754); Movie Grill Concepts LII, LLC (8624); Movie Grill Concepts LIII, LLC (3066); Movie Grill Concepts LIV, LLC (2018); Movie Grill Concepts LV, LLC (4699); Movie Grill Partners 3, LLC (4200); Movie Grill Partners 4, LLC (1363); Movie Grill Partners 6, LLC (3334); and MGC Management COMES NOW, the State of Texas (“State of Texas” or “State”), by and through the Office of the Texas Attorney Genera

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Texas State Bar No. 24026015 Assistant Attorneys General Bankruptcy & Collections Division P. O. Box 12548 Austin, Texas 78711-2548 P: (512) 463-2173/F: (512) 936-1409 jason.binford@oag.texas.gov layla.milligan@oag.texas.gov ATTORNEYS FOR THE STATE OF TEXAS UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION In re: § Case No. 20- 32633-SGJ § Studio Movie Grill Holdings, LLC, et al.,1 § Chapter 11 § Debtors. § Jointly Administered LIMITED OBJECTION OF THE STATE OF TEXAS TO THE DEBTORS’ SECOND AMENDED JOINT PLAN OF REORGANIZATION FOR STUDIO MOVIE GRILL HOLDINGS, LLC AND JOINTLY ADMINISTERED DEBTORS AND PLAN SUPPLEMENTS 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: Studio Movie Grill Holdings, LLC (6546) (“SMG Holdings”); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793); Movie Grill Concepts IV, Ltd. (1454); Movie Grill Concepts IX, LLC (3736); Movie Grill Concepts VI, Ltd. (6895); Movie Grill Concepts VII, LLC (2291); Movie Grill Concepts X, LLC (6906); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XII, LLC (6040); Movie Grill Concepts XIII, LLC (5299); Movie Grill Concepts XIV, LLC (4709); Movie Grill Concepts XIX, LLC (9646); Movie Grill Concepts XL, LLC (4454); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLII, LLC (2309); Movie Grill Concepts XLIII, LLC (9721); Movie Grill Concepts XLIV, LLC (8783); Movie Grill Concepts XLV, LLC (2570); Movie Grill Concepts XV, LLC (4939); Movie Grill Concepts XVI, LLC (1033); Movie Grill Concepts XVII, LLC (1733); Movie Grill Concepts XVIII, LLC (8322); Movie Grill Concepts XX, LLC (7300); Movie Grill Concepts XXI, LLC (1508); Movie Grill Concepts XXII, LLC (6748); Movie Grill Concepts XXIV, LLC (5114); Movie Grill Concepts XXIX, LLC (5857); Movie Grill Concepts XXV, LLC (4985); Movie Grill Concepts XXVI, LLC (5233); Movie Grill Concepts XXVII, LLC (4427); Movie Grill Concepts XXVIII, LLC (1554); Movie Grill Concepts XXX, LLC (1431); Movie Grill Concepts XXXI, LLC (3223); Movie Grill Concepts XXXII, LLC (0196); Movie Grill Concepts XXXIII, LLC (1505); Movie Grill Concepts XXXIV, LLC (9770); Movie Grill Concepts XXXIX, LLC (3605); Movie Grill Concepts XXXV, LLC (0571); Movie Grill Concepts XXXVI, LLC (6927); Movie Grill Concepts XXXVII, LLC (6401); Movie Grill Concepts XXXVIII, LLC (9657); Movie Grill Concepts XXIII, LLC (7893); Studio Club, LLC (3023); Studio Club IV, LLC (9440); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLVI, LLC (2344); Movie Grill Concepts XLVII, LLC (5866); Movie Grill Concepts XLVIII, LLC (8601); Movie Grill Concepts XLIX, LLC (0537); Movie Grill Concepts L, LLC (5940); Movie Grill Concepts LI, LLC (7754); Movie Grill Concepts LII, LLC (8624); Movie Grill Concepts LIII, LLC (3066); Movie Grill Concepts LIV, LLC (2018); Movie Grill Concepts LV, LLC (4699); Movie Grill Partners 3, LLC (4200); Movie Grill Partners 4, LLC (1363); Movie Grill Partners 6, LLC (3334); and MGC Management I, LLC (3224).

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COMES NOW, the State of Texas (“State of Texas” or “State”), by and through the Office of the Texas Attorney General, and respectfully files this Limited Objection to the Debtors’ Second Amended Joint Plan of Reorganization for Studio Movie Grill Holdings, LLC and Jointly Administered Debtors and Plan Supplements (the “Limited Objection”). In support of its Limited Objection, the State of Texas respectfully states as follows: I. OVERVIEW 1. The State, out of an abundance of caution, files its Limited Objection in order to assure the ability of the State to protect its consumers from potential exposure of their personally identifiable information. II. LIMITED OBJECTION Protection of “Personally Identifiable Information” 2. The Debtors’ propose in the Debtors’ Second Amended Joint Plan of Reorganization for Studio Movie Grill Holdings, LLC and Jointly Administered Debtors (“Plan”) (Dkt. No. 700) and Supplement to the Amended Joint Plan of Reorganization for Studio Movie Grill Holdings, LLC and Jointly Administered Debtors (Dkt. No. 702) and Second Supplement to the Second Amended Joint Plan of Reorganization for Studio Movie Grill Holdings, LLC and Jointly Administered Debtors (Dkt. No. 705) (“Plan Supplements,”) to reject leases of certain property, including software and other furniture, fixtures, and equipment that may contain “Personally Identifiable Information”2 (the “PII”). However, the Debtors’ Plan and Plan Supplements do not address safeguards required by Texas law for the proper destruction and disposal of PII that the property in question may contain. 2 11 U.S.C. § 101(41A) defines the term “personally identifiable information.”

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3. As such, the State objects to the rejection of leases and/or abandonment of any of the Debtors’ property without the proper destruction and disposal of any PII. 4. To address this issue, the State requests that the following paragraphs be added to the Confirmation Order: Notwithstanding anything to the contrary in the Plan, Plan Supplements, or herein, nothing in this Order authorizes the Debtors to sell or abandon any personal property containing or constituting “Personally Identifiable Information,” (“PII”) as that term is defined in Bankruptcy Code section 101(41A). The Debtors shall remove or cause to be removed any confidential and/or PII in any of the Debtors hardware, software, computers or cash registers or similar equipment which are to be sold, donated, transferred, abandoned or otherwise disposed of so as to render the PII unreadable or undecipherable. PRAYER Wherefore, the State respectfully requests that the Court sustain its Limited Objection and grant such further relief to the State as this Court deems just and equitable. [Remainder of Page Intentionally Left Blank]

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Dated: March 10, 2021 Respectfully submitted, KEN PAXTON Attorney General of Texas BRENT WEBSTER First Assistant Attorney General GRANT DORFMAN Deputy First Assistant Attorney General SHAWN E. COWLES Deputy Attorney General for Civil Litigation RACHEL R. OBALDO Assistant Attorney General Chief, Bankruptcy & Collections Division /s/ Jason B. Binford JASON B. BINFORD Texas State Bar No. 24045499 LAYLA D. MILLIGAN Texas State Bar No. 24026015 Office of the Attorney General of Texas Bankruptcy & Collections Division P. O. Box 12548 MC008 Austin, Texas 78711-2548 Telephone: (512) 463-2173 Facsimile: (512) 936-1409 jason.binford@oag.texas.gov layla.milligan@oag.texas.gov ATTORNEYS FOR THE STATE OF TEXAS

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CERTIFICATE OF SERVICE I certify that a true and correct copy of the foregoing has been served via the Court’s Electronic Filing System on all parties requesting notice in this proceeding and that copies were mailed to the counsel and parties listed below via first class U.S. Mail, postage prepaid, and emailed where indicated, on March 10, 2021. Counsel to the Debtors Law Offices of Frank J. Wright 2323 Ross Avenue, Suite 730 Dallas, Texas 75201 Attn: Frank J. Wright, Esq. and Jeffery M. Veteto, Esq., Email: frank@fjwright.law and jeff@fjwright.law Counsel to the Agent Vinson & Elkins LLP 2001 Ross Ave., Suite 3900 Dallas, Texas 75201 Attn: William L. Wallander, Esq. and Bradley R. Foxman, Esq. Email: bwallander@velaw.com and bfoxman@velaw.com Counsel to the Committee Pachulski Stang Ziehl & Jones LLP 780 Third Avenue, 34th Floor New York, NY 10017 Attn: Jeffrey Pomerantz, Esq., Robert Feinstein, Esq. and Steven Golden, Esq. Email: jpomerantz@pszjlaw.com, rfeinstein@pszjlaw.com and sgolden@pszjlaw.com Norton Rose Fulbright US LLP 2200 Ross Avenue, Suite 3600, Dallas, TX 75201 Attn: Ryan Manns, Esq. Email: ryan.manns@nortonrosefulbright.com Office of the United States Trustee 1100 Commerce St. Room 976 Dallas, TX 75242-1699 Counsel to Crestline Jones Day 250 Vesey Street New York, New York 10281 Attn: John E. Mazey, Esq., Michael C. Schneidereit, Esq. and Nicholas J. Morin, Esq. Email: jemazey@jonesday.com, mschneidereit@jonesday.com and nmorin@jonesday.com /s/Jason B. Binford JASON B. BINFORD Assistant Attorney General