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Full title: Reply to (related document(s): 794 Objection filed by Interested Party Cinergy Entertainment Group, Inc., 806 Objection filed by Creditor CES Plus, Inc.) filed by Creditor Tarrant County. (Spindler, Laurie)

Document posted on Mar 28, 2021 in the bankruptcy, 4 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

Texas Tax Code Section 32.05 provides: (b) … a tax lien provided by this chapter takes priority over the claim of any creditor of a person whose property is encumbered by the lien and over the claim of any holder of a lien on property encumbered by the tax lien, whether or not the debt or lien existed before attachment of the tax lien.The estimated amount of ad valorem business personal property tax for tax year 2021 is calculated using the base amount of tax owed for tax year 2020.With regard to the Chisholm Trail Ranch Location, which was completed in the fall of 2020 and, thus, does not appear on the tax rolls until January 1, 2021, the estimated amount of ad valorem business personal property taxes was calculated using the Tarrant Appraisal District’s proposed value of $1,202,906.00 and the tax rates for tax year 2020.615] be followed and the proceeds of the sale be used to pay Tarrant County’s prepetition claims with interest that has accrued at the state statutory rate pursuant to 11 U.S.C. Sections 506(b), 511 and 1129 and that the amount of $57,091.04 be deposited into a segregated account as adequate protection of Tarrant County’s liens that secure year 2021 ad valorem business personal property taxes. WHEREFORE, premises considered, the Tax Authorities respectfully request that the Court’s order provides: (i) that Tarrant County’s claims for prepetition ad valorem business personal property taxes plus interest that has accrued pursuant to 11 U.S.C. Sections 506(b), 511 and 1129 shall be paid from the sale proceeds at closing; (ii) that the amount of $57,091.04 from the sale proceeds shall be deposited in to a segregated account as adequate protection of Tarrant County’s liens that secure year 2021 ad valorem property taxes (with the segregated amount not being dispositive of the actual amount of Tarrant County’s administrative expense claims); (iii) alternatively, that the Debtors shall deposit $100,205.00 into a segregated account as adequate protection of Tarrant County’s prepetition claims and administrative expense claims (with the segregated amount not being dispositive of the actual amount of Tarrant County’s prepetition and administrative expense claims); and (iv) such other and further relief to which it may be justly entitled.

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Laurie A. Spindler Linebarger Goggan Blair & Sampson, LLP 2777 N. Stemmons Fwy, Suite 1000 Dallas, Texas 75207 (214) 880-0089 Telephone (469) 221-5003 Facsimile Attorneys for Tarrant County IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION In re: § Chapter 11 § STUDIO MOVIE GRILL HOLDINGS, § Case No. 20-32633 LLC, et al., § § (Jointly Administered) Debtors. § TARRANT COUNTY’S COMMENT ON NOTICE OF INTENT TO SELL CERTAIN PERSONAL PROPERTY LOCATED AT CHISHOLM TRAIL RANCH LOCATION TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE: Comes now, Tarrant County, creditor and party-in-interest, and files this, its Comment on Notice of Intent to Sell Certain Personal Property Related to the Chisholm Trail Ranch Location and Interests and would respectfully show the Court as follows: 1. Tarrant County, a duly organized governmental unit of the State of Texas, is the holder of a prepetition claim against the Debtors in the aggregate amount of $40,673.80. 2. Tarrant County is also the holder of administrative expense claim for estimated year 2021 ad valorem business personal property taxes assessed against the Debtor’s property including the tangible personal property located at the Chisholm Trail Ranch Location1 in the 1 All capitalized terms that are not defined herein shall have the same meaning as the Debtors have ascribed to them in previously filed pleadings.

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aggregate estimated amount of $57,091.04.2 These administrative expense claims and the liens that secure them arose on January 1, 2021 pursuant to Texas Law. 3. Tarrant County’s prepetition and administrative expense claims are secured by unavoidable, perfected, first priority liens on all of the Debtors’ business personal property pursuant to Texas Tax Code Sections 32.01 and 32.05 and 11 U.S.C. Section 362(b)(18). 11 U.S.C. Section 362(b)(18) permits the post-petition attachment of ad valorem property tax liens. Texas Tax Code Section 32.01 provides: (a) On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property, whether or not the taxes are imposed in the year the lien attaches. The lien exists in favor of each taxing unit having power to tax the property. (b) A tax lien on inventory, furniture, equipment, or other personal property is a lien in solido and attaches to all inventory, furniture, equipment, and other personal property that the property owner owns on January 1 of the year the lien attaches or that the property owner subsequently acquires. … (d) The lien under this section is perfected on attachment and … perfection requires no further action by the taxing unit. Texas Tax Code Section 32.05 provides: (b) … a tax lien provided by this chapter takes priority over the claim of any creditor of a person whose property is encumbered by the lien and over the claim of any holder of a lien on property encumbered by the tax lien, whether or not the debt or lien existed before attachment of the tax lien. 4. The Tax Authorities do not object to the proposed sale of personal property. However, the Tax Authorities do request that because the property at the Chisholm Trail Ranch 2 The estimated amount of ad valorem business personal property tax for tax year 2021 is calculated using the base amount of tax owed for tax year 2020. With regard to the Chisholm Trail Ranch Location, which was completed in the fall of 2020 and, thus, does not appear on the tax rolls until January 1, 2021, the estimated amount of ad valorem business personal property taxes was calculated using the Tarrant Appraisal District’s proposed value of $1,202,906.00 and the tax rates for tax year 2020. The actual amount of taxes owed for tax year 2021 will be determined in October 2021 pursuant to Texas Law.

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Location also secures all amounts owed to Tarrant County for ad valorem business personal property located within its jurisdiction, albeit at other locations within Tarrant County, that the procedures set forth in the Order Authorizing Sale Procedures for Sale of Personal Property Assets Free and Clear of All Liens, Claims and Encumbrances and Interests [Doc. No. 615] be followed and the proceeds of the sale be used to pay Tarrant County’s prepetition claims with interest that has accrued at the state statutory rate pursuant to 11 U.S.C. Sections 506(b), 511 and 1129 and that the amount of $57,091.04 be deposited into a segregated account as adequate protection of Tarrant County’s liens that secure year 2021 ad valorem business personal property taxes. Alternatively, that the amount of $100,205.00 be deposited into a segregated account as adequate protection of the liens that secure Tarrant County’s prepetition claims and its administrative expense claims. WHEREFORE, premises considered, the Tax Authorities respectfully request that the Court’s order provides: (i) that Tarrant County’s claims for prepetition ad valorem business personal property taxes plus interest that has accrued pursuant to 11 U.S.C. Sections 506(b), 511 and 1129 shall be paid from the sale proceeds at closing; (ii) that the amount of $57,091.04 from the sale proceeds shall be deposited in to a segregated account as adequate protection of Tarrant County’s liens that secure year 2021 ad valorem property taxes (with the segregated amount not being dispositive of the actual amount of Tarrant County’s administrative expense claims); (iii) alternatively, that the Debtors shall deposit $100,205.00 into a segregated account as adequate protection of Tarrant County’s prepetition claims and administrative expense claims (with the segregated amount not being dispositive of the actual amount of Tarrant County’s prepetition and administrative expense claims); and (iv) such other and further relief to which it may be justly entitled.

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Dated: March 29, 2021. Respectfully submitted, Linebarger Goggan Blair & Sampson, LLP 2777 N. Stemmons Fwy, Suite 1000 Dallas, TX 75207 Ph. No. (214) 880-0089 Fax No. (469) 221-5003 Laurie.Spindler@lgbs.com By: /s/Laurie A. Spindler ____________ Laurie A. Spindler SBN 24028720 ATTORNEYS FOR TARRANT COUNTY CERTIFICATE OF SERVICE The undersigned hereby certifies that a true and correct copy of the foregoing was served electronically through the Court’s case filing system or through electronic mail upon Frank J. Wright, email: frank@fjwright.law and Jeffery M. Veteto, email: jeff@fjwright.law on this 29th day of March 2021. /s/Laurie A Spindler Laurie A. Spindler