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Full title: Objection to (related document(s): 771 Notice (generic) filed by Debtor Studio Movie Grill Holdings, LLC) filed by Creditor CES Plus, Inc.. (Attachments: # 1 Exhibit # 2 Exhibit) (Schurr, Patrick)

Document posted on Mar 21, 2021 in the bankruptcy, 4 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

§ Jointly Administered CES PLUS, INC.’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONAL PROPERTY RELATED TO THE CHISOLM TRAIL RANCH LOCATION (DOCUMENTOn October 23, 2020, the Debtors each filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101, et seq.’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONALTY (CHISOLM TRAIL RANCH LOCATION) – PAGE 1 2. ’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONALTY (CHISOLM TRAIL RANCH LOCATION) – PAGE 3 ’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONALTY (CHISOLM TRAIL RANCH LOCATION) – PAGE 4

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Patrick J. Schurr Daniel N. Gonzalez, Esquire Texas Bar No. 17853530 Florida Bar No. 592749 Patrick.schurr@solidcounsel.com MELAND BUDWICK, P.A. SCHEEF & STONE, L.L.P. 3200 Southeast Financial Center 2600 Network Boulevard, Suite 400 200 South Biscayne Boulevard Frisco, Texas 75034 Miami, Florida 33131 Telephone: 214.472.2100 Telephone: (305) 358-6363 Telecopier: 214.472.2150 (pro hac vice forthcoming) ATTORNEYS FOR CES PLUS, INC. IN THE UNITED STATES BANKRUPTCY COURT FOR NORTHERN DISTRICT OF TEXAS DALLAS DIVISION In re: § § STUDIO MOVIE GRILL § Case No. 20-32633-11 HOLDINGS, LLC, et al., § § Debtors. § Jointly Administered CES PLUS, INC.’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONAL PROPERTY RELATED TO THE CHISOLM TRAIL RANCH LOCATION (DOCUMENT NO. 771) CES Plus, Inc. (“CES”), by and through its undersigned counsel, files its Objection (the “Objection”) to the Debtors’ Notice of Intent to Sell Certain Personal Property Related to the Chisolm Trail Ranch Location (the “Sale Notice”)[Document No. 771], and in support states as follows: 1. On October 23, 2020, the Debtors each filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101, et seq. (the “Bankruptcy Code”), thereby initiating the above-captioned bankruptcy cases (the “Chapter 11 Cases”). The Debtors continue to manage and operate their businesses as debtors-in-possession pursuant to Bankruptcy Code §§ 1107 and 1108. CES PLUS, INC.’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONALTY (CHISOLM TRAIL RANCH LOCATION) – PAGE 1

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2. Prepetition, CES entered in a bailment and security agreement (the “Bailment Agreement”) with Movie Grill Concepts Trademark Holdings, LLC, d/b/a Studio Movie Grill (“SMG”). A copy of the Bailment Agreement is attached as Exhibit 1. SMG is a debtor in these jointly administered cases. 3. Thereafter, on October 20, 2020, CES filed its UCC-1 Financing Statement in connection with the Bailment Agreement. A copy of the UCC-1 Financing Statement is attached as Exhibit 2. 4. The Bailment Agreement identifies, with specificity, all of the personal property delivered by CES to SMG (the “Personal Property”). 5. All the Personal Property, which includes two projectors and numerous switches, was delivered to, and installed at, the Debtors’ Chisolm Trail Ranch location. 6. On March 12, 2021, the Debtors filed the Sale Notice. Through the Sale Notice, the Debtors are seeking to sell, amongst other things, “all audio/visual equipment (2 theaters) including projectors, screens, and speakers” at the Debtors’ Chisolm Trail Ranch location for $150,000. 7. The Debtors’ Sale Notice does not specifically identify (by serial number of otherwise) what “audio/visual equipment” it is intending to sell. Rather, the Debtors’ Sale Notice only states it is selling “all audio/visual equipment” at the Debtors’ Chisolm Trail Ranch location. Accordingly, CES objects to the Sale Notice to the extent the Debtor is seeking to sell any of CES’s Personal Property identified in the Bailment Agreement. CES PLUS, INC.’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONALTY (CHISOLM TRAIL RANCH LOCATION) – PAGE 2

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Relief Requested 8. CES objects to the Sale Notice to the extent the Debtors are attempting to sell CES’s Personal Property, which Personal Property the Debtors do not own (and therefore cannot sell). See In re Citation Corp., 349, B.R. 290, 298 (Bankr. N.D. Ala. 2006)(analyzing Texas bailment law). 9. Prior to the filing of this Objection, undersigned counsel emailed and left a voicemail for Debtors’ counsel. However, Debtors’ counsel has not responded to undersigned counsel prior to the filing of this Objection. WHEREFORE, CES respectfully requests that the Court deny the proposed Sale Notice to the extent the Debtors’ are attempting to sell CES’s Personal Property, and to grant any and all further relief this Court deems just and proper. Respectfully submitted this the 22nd day of March, 2021. s/ Patrick J. Schurr Patrick J. Schurr Texas Bar No. 17853530 Patrick.schurr@solidcounsel.com SCHEEF & STONE, L.L.P. 2600 Network Boulevard, Suite 400 Frisco, Texas 75034 Telephone: 214.472.2100 Telecopier: 214.472.2150 CES PLUS, INC.’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONALTY (CHISOLM TRAIL RANCH LOCATION) – PAGE 3

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Daniel N. Gonzalez, Esquire (pro hac vice forthcoming) Florida Bar No. 592749 dgonzalez@melandbudwick.com MELAND BUDWICK, P.A. 3200 Southeast Financial Center 200 South Biscayne Boulevard Miami, Florida 33131 Telephone: (305) 358-6363 Telecopier: (305) 358-1221 ATTORNEYS FOR CES PLUS, INC. CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the above and foregoing document was served on counsel for the Debtors, the Office of the U.S. Trustee, any committee, and all parties in interest or who have requested notice, via electronic mail, on this the 22nd day of March, 2021. /s/ Patrick J. Schurr CES PLUS, INC.’S OBJECTION TO DEBTORS’ NOTICE OF INTENT TO SELL CERTAIN PERSONALTY (CHISOLM TRAIL RANCH LOCATION) – PAGE 4