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Full title: Order Granting Fay Ball Relief from the Automatic Stay to Allow Civil Litigation to Proceed to the Extent of Insurance (Related Doc # 685, 747) Signed on 2/16/2021. (LMC) (Entered: 02/16/2021)

Document posted on Feb 15, 2021 in the bankruptcy, 3 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

(the “State Court Action”); and the Court having 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 as of February 29, 2012; and this matter being a core proceeding pursuant to 28 U.S.C. § 157(b); and this Court having jurisdiction to enter a final order consistent with Article III of the United States Constitution; and venue of these chapter 11 cases and the Motion in this district being proper pursuant to 28 U.S.C. §§ 1408 and 1409; and it appearing that proper and adequate notice of the Motion has been given and that no other or further notice is necessary; and this Court having 1 Subject to Paragraphs 3, 4 and 5 below, the automatic stay pursuant to section 362 of the Bankruptcy Code is modified as of the Stay Modification Date so as to not restrain the Movant from prosecuting the State Court Action to settlement or final judgment and from collecting on such judgment solely from and to the extent of the Debtors’ insurance policies and any proceeds thereof.Without limitation, the foregoing waiver shall not constitute a waiver of any right of the Movant to collect as against the Debtors’ applicable insurance policies or any proceeds thereof, to the extent any such proceeds are available to the Movant under the terms of such insurance policies.Nothing herein is intended or shall be deemed to be a stipulation, agreement, representation, warranty, or admission by the Debtors or their estates that (a) the Debtors or their estates are liable to the Movant for any amounts or that (b) any causes of action, claims or damages alleged in the State Court Action are covered in whole or in part under of any of the Debtors’ insurance policies.Any causes of action, claims or damage alleged in the State Court Action are subject to the terms conditions, exclusions and limitations of such insurance policies as they may or may not apply.

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: Chapter 11 YOUFIT HEALTH CLUBS, LLC, et al.,1 Case No. 20-12841 (MFW) Debtors. (Jointly Administered) Ref. Docket No. 685 and 747 ORDER GRANTING FAY BALL RELIEF FROM THE AUTOMATIC STAY TO ALLOW CIVIL LITIGATION TO PROCEED TO THE EXTENT OF INSURANCE Upon the Motion of Fay Ball for Relief from Automatic Stay [Docket No. 685] (the “Motion”) pursuant to section 362 of the Bankruptcy Code, 11 U.S.C. §§ 101 et seq. (the “Bankruptcy Code”) seeking relief from the automatic stay so that Fay Ball (the “Movant”) may proceed with the litigation captioned Fay F. Ball v. YouFit Health Clubs, LLC, Case No. CACE 19-020950 (08) (Fla. Cir. Ct. filed Oct. 8, 2019) (the “State Court Action”); and the Court having 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 as of February 29, 2012; and this matter being a core proceeding pursuant to 28 U.S.C. § 157(b); and this Court having jurisdiction to enter a final order consistent with Article III of the United States Constitution; and venue of these chapter 11 cases and the Motion in this district being proper pursuant to 28 U.S.C. §§ 1408 and 1409; and it appearing that proper and adequate notice of the Motion has been given and that no other or further notice is necessary; and this Court having 1 The last four digits of YouFit Health Clubs, LLC’s tax identification number are 6607. Due to the large number of debtor entities in these chapter 11 cases, a complete list of the debtor entities and the last four digits of their federal tax identification numbers is not provided herein. A complete list of such information may be obtained on the website of the claims and noticing agent at www.donlinrecano.com/yfhc. The mailing address for the debtor entities for purposes of these chapter 11 cases is: 1350 E. Newport Center Dr., Suite 110, Deerfield Beach, FL 33442.

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determined that there is good and sufficient cause for the relief set forth in this Order; and after due deliberation thereon, IT IS HEREBY ORDERED THAT: 1. The automatic stay pursuant to section 362 of the Bankruptcy Code shall remain in effect as to the State Court Action until the earlier of (a) 14 days after the effective date of any confirmed chapter 11 plan filed by the Debtors or (b) 90 days after the date of entry of this Order (the “Stay Modification Date”). 2. Subject to Paragraphs 3, 4 and 5 below, the automatic stay pursuant to section 362 of the Bankruptcy Code is modified as of the Stay Modification Date so as to not restrain the Movant from prosecuting the State Court Action to settlement or final judgment and from collecting on such judgment solely from and to the extent of the Debtors’ insurance policies and any proceeds thereof. 3. The Movant waives any and all claims related to the State Court Action against the Debtors’ present and former officers, directors, professionals and employees. Without limitation, the foregoing waiver shall not constitute a waiver of any right of the Movant to collect as against the Debtors’ applicable insurance policies or any proceeds thereof, to the extent any such proceeds are available to the Movant under the terms of such insurance policies. 4. The Movant’s recovery, if any, in the State Court Action shall be limited to the extent of the Debtors’ insurance policies and any proceeds thereof, and the Movant shall not be entitled to any recovery against the Debtors or their estates in the State Court Action. Neither the Debtor, their estates nor any successors thereto shall be obligated to pay any amounts due and owing under any applicable insurance policies, including, but not limited to, any self-insured retention, deductible or other amount on account of any judgment or settlement.

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5. Nothing herein is intended or shall be deemed to be a stipulation, agreement, representation, warranty, or admission by the Debtors or their estates that (a) the Debtors or their estates are liable to the Movant for any amounts or that (b) any causes of action, claims or damages alleged in the State Court Action are covered in whole or in part under of any of the Debtors’ insurance policies. Any causes of action, claims or damage alleged in the State Court Action are subject to the terms conditions, exclusions and limitations of such insurance policies as they may or may not apply. The aggregate limits of any such insurance policies are or may be subject to reduction, depletion or exhaustion by payments made thereunder with regard to any pending or future claims, and no representations to the contrary are asserted. Any amounts necessary to collect any insurance proceeds shall be borne solely by the Movant. 6. The Court shall retain jurisdiction with respect to all matters arising from or related to the implementation or interpretation of this Order. Dated: February 16th, 2021 MARY F. WALRATH

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