HTML Document View

Full title: Plan Administrator's Motion to Establish Procedures Governing Avoidance Action Adversary Proceedings, filed by Oxford Restructuring Advisors LLC, as Trustee for the GenCanna Wind-Down Trust. Hearing scheduled for 12/16/2021 at 09:00 AM at Lexington Courtroom, 2nd Floor. (Attachments: # (1) Exhibit A # (2) Exhibit B # (3) Proposed Order) (Hammer, Aaron)

Document posted on Nov 29, 2021 in the bankruptcy, 9 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

Debtors. Honorable Gregory R. Schaaf NOTICE OF HEARING Comes Oxford Restructuring Advisors LLC solely in its capacity as Plan Administrator for the GenCanna Wind-Down Trust (the “Plan Administrator”), and hereby notices its Motion of the Plan Administrator to Establish Procedures Governing Avoidance Action Adversary Proceedings for December 16, 2021, at 9:00 a.m., before the Honorable Gregory R. Schaaf, United States Bankruptcy Judge for the Eastern District of Kentucky, Second Floor Courtroom, 100 East Vine Street, Lexington, Kentucky 40507.Honorable Gregory R. Schaaf PLAN ADMINISTRATOR’S MOTION TO ESTABLISH PROCEDURES GOVERNING AVOIDANCE ACTION ADVERSARY PROCEEDINGS Oxford Restructuring Advisors LLC, as Plan Administrator for the GenCanna Wind-Down Trust (“Plan Administrator”), by and through its undersigned counsel, submits this motion (the “Motion”) seeking an order approving proposed procedures governing avoidance action adversary proceedings (the “Procedures”) under chapter 5 of title 11 of the United States Code (the “Bankruptcy Code”).The Court has jurisdiction over this motion pursuant to 28 U.S.C. §§ 157 and 1334 because it arises under the Bankruptcy Code and arises in and relates to cases under title 11, in the United States Bankruptcy Court for the Eastern District of Kentucky (the “Bankruptcy Court”), captioned In re OGGUSA, Inc., Case No. 20-50133.Any Defendant to an Avoidance Action filed by the Plan Administrator shall have sixty (60) days, once served with a summons, to answer or otherwise respond to the Plan Administrator’s Avoidance Action complaint (each, a “Complaint”); The Plan Administrator shall have authority to extend the time to file an answer to any Complaint or otherwise responsive pleading filed in connection with an Avoidance Action through informal, written extension agreements or stipulations without seeking Bankruptcy Court approval;

List of Tables

Document Contents

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF KENTUCKY LEXINGTON DIVISION In re: Chapter 11 OGGUSA, Inc., et al.,1 Case No. 20-50133-grs (Jointly Administrated) Debtors. Honorable Gregory R. Schaaf NOTICE OF HEARING Comes Oxford Restructuring Advisors LLC solely in its capacity as Plan Administrator for the GenCanna Wind-Down Trust (the “Plan Administrator”), and hereby notices its Motion of the Plan Administrator to Establish Procedures Governing Avoidance Action Adversary Proceedings for December 16, 2021, at 9:00 a.m., before the Honorable Gregory R. Schaaf, United States Bankruptcy Judge for the Eastern District of Kentucky, Second Floor Courtroom, 100 East Vine Street, Lexington, Kentucky 40507. Respectfully submitted, OXFORD RESTRUCTURING ADVISORS, LLC as the Plan Administrator of the GenCanna Wind- Down Trust, By: /s/ Aaron L. Hammer Aaron L. Hammer ahammer@hmblaw.com Admitted Pro Hac Vice Nathan E. Delman ndelman@hmblaw.com Admitted Pro Hac Vice HORWOOD MARCUS & BERK CHARTERED 1 The Debtors in these Chapter 11 cases are (with the last four digits of their federal tax identification numbers in parentheses): OGGUSA, Inc. (0251); OGG, Inc. (N/A); and Hemp Kentucky, LLC (0816).

1

500 West Madison Street, Suite 3700 Chicago, Illinois 60661 (312) 606-3200 -and- John P. Brice jbrice@wyattfirm.com WYATT TARRANT & COMBS LLP 250 West Main Street, Suite 1600 Lexington, Kentucky 40504 Telephone: (859) 288-7462 Facsimile: (859) 259-0649

2

IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF KENTUCKY LEXINGTON DIVISION In re: Chapter 11 OGGUSA, Inc., Case No. 20-50133-grs Debtor. Honorable Gregory R. Schaaf PLAN ADMINISTRATOR’S MOTION TO ESTABLISH PROCEDURES GOVERNING AVOIDANCE ACTION ADVERSARY PROCEEDINGS Oxford Restructuring Advisors LLC, as Plan Administrator for the GenCanna Wind-Down Trust (“Plan Administrator”), by and through its undersigned counsel, submits this motion (the “Motion”) seeking an order approving proposed procedures governing avoidance action adversary proceedings (the “Procedures”) under chapter 5 of title 11 of the United States Code (the “Bankruptcy Code”). In support of the Motion, the Plan Administrator states as follows: JURISDICTION & VENUE 1. The Court has jurisdiction over this motion pursuant to 28 U.S.C. §§ 157 and 1334 because it arises under the Bankruptcy Code and arises in and relates to cases under title 11, in the United States Bankruptcy Court for the Eastern District of Kentucky (the “Bankruptcy Court”), captioned In re OGGUSA, Inc., Case No. 20-50133. 2. The statutory and legal predicates for relief sought herein are sections 502, 547, 548, 549, and 550 of the Bankruptcy Code and Rules 3007 and 7001 of the Federal Rules of Bankruptcy Procedures (“FRBP”). 3. The Motion is a core proceeding pursuant to 28 U.S.C. § 157(b)(2). 4. Venue is proper in the Eastern District of Kentucky pursuant to 28 U.S.C. §§ 1408 and 1409.

3

BACKGROUND 5. On January 24, 2020 (the “Petition Date”), certain creditors filed an involuntary bankruptcy petition for relief under chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) against OGGUSA, Inc. f/k/a GenCanna Global USA, Inc. (“GenCanna”). 6. On February 5, 2020, OGG, Inc. f/k/a Gencanna Global, Inc. (“GCG”) and Hemp Kentucky, LLC (“Hemp KY” and collectively with GenCanna and GCG, the “Debtor”) each filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court. 7. On February 6, 2020, GenCanna consented to the involuntary petition filed against it and the Bankruptcy Court entered an order for relief under chapter 11 of the Bankruptcy Code in GenCanna’s Case. [Dkt. No. 94]. 8. On that same day, a Notice of Designation as Complex Chapter 11 Case was filed pursuant to KYEB LBR 2081-2(b). [Dkt. No. 43]. This local rule recognizes the “need for simplification of noticing and hearing procedures to reduce delays and expense[]” in complex chapter 11 cases. See KYEB LBR 2081-2(a)(iv). 9. On February 18, 2020, the United States Trustee for Region 8 (the “US Trustee”) appointed the Official Committee of Unsecured Creditors for GenCanna Global USA, Inc. et al. pursuant to section 1102 of the Bankruptcy Code (the “UCC”) [Dkt. No. 135]. 10. On October 9, 2020, the Debtors filed the Debtors’ Second Amended Joint Plan of Liquidation [Dkt. No. 1405] (as amended or modified from time to time in accordance with the terms thereof and together with all exhibits, schedules, appendices and supplements thereto, the “Plan”) and a related disclosure statement [Dkt. No. 1406]. 11. On November 12, 2020, the Bankruptcy Court entered an order confirming the Plan and granting related relief (the “Confirmation Order”) [Dkt. No. 1517].

4

12. On December 1, 2020, the GenCanna Wind-Down Trust Agreement (the “Trust Agreement”) established the GenCanna Wind-Down Trust (the “Trust”) for the benefit of the Trust’s beneficiaries and named Plaintiff as the plan administrator. 13. Pursuant to the Trust Agreement, the Debtor transferred to the Trust certain assets including, but not limited to, causes of action arising under §§ 510, 542 through 551, and 553 of the Bankruptcy Code (the “Avoidance Actions”). 14. On October 21, 2021 the Bankruptcy Court entered an order administratively closing the GCG and Hemp KY bankruptcy cases. [Dkt. No. 1768]. 15. Since its appointment, the Plan Administrator has reviewed the Debtor’s books and records to evaluate the Debtor’s potential Avoidance Actions and prepare to reduce them to judgment. Due to the short window of time between its appointment and the statutory deadline established by § 546 of the Bankruptcy Code and the volume of Avoidance Actions that may be pursued, it will likely be necessary for the Plan Administrator to file a large number of Avoidance Actions — possibly well over 150 adversary proceedings. To minimize administrative burdens and to preserve the resources of the Plan Administrator, the Avoidance Action defendants (each, a “Defendant”), and the Bankruptcy Court, the Plan Administrator requests that the Bankruptcy Court establish the procedures (the “Avoidance Action Procedures”) set forth below for the resolution of those adversary proceedings. RELIEF REQUESTED 16. The Plan Administrator requests that the Bankruptcy Court enter an Order, substantially in the form of the one attached hereto as Exhibit A, providing the following: a. Any Defendant to an Avoidance Action filed by the Plan Administrator shall have sixty (60) days, once served with a summons, to answer or

5

otherwise respond to the Plan Administrator’s Avoidance Action complaint (each, a “Complaint”); b. The Plan Administrator shall serve each Defendant a copy of the Avoidance Action Procedures along the with the applicable summons and Complaint; c. The Plan Administrator shall have authority to extend the time to file an answer to any Complaint or otherwise responsive pleading filed in connection with an Avoidance Action through informal, written extension agreements or stipulations without seeking Bankruptcy Court approval; d. Defendants have the power to opt out of the Avoidance Action Procedures; e. Suspension of certain Fed.R.Civ.Pro. 26 requirements, including no discovery conferences or formal discovery deadlines so long as the parties remain engaged in settlement negotiations; f. The Bankruptcy Court shall not enter an Order for Trial or any other Order establishing scheduling deadlines in an adversary proceeding asserting an Avoidance Action until the Defendant has filed an answer; g. The Clerk of Court shall modify the summons in each adversary proceeding concerning an Avoidance Action to provide that the Defendant shall have sixty (60) days to answer or otherwise respond to any Complaint; h. The Parties shall engage in non-binding mediation; and i. The Bankruptcy Court shall hold monthly omnibus hearings for each Avoidance Action (the “Omnibus Hearings”), and the Plan Administrator shall present status reports on each filed Avoidance Action prior to each Omnibus Hearing;

6

17. Additionally, the Plan Administrator seeks the Bankruptcy Court’s approval of a standard tolling agreement, attached hereto as Exhibit B, for use with any potential Avoidance Action defendants. BASIS FOR RELIEF 18. Section 105(a) of the Bankruptcy Code affords bankruptcy courts the power to “issue any order, process, or judgment that is necessary or appropriate to carry out the provisions [of the Bankruptcy Code].” 19. Establishing uniform procedures to govern Avoidance Actions will assist the Plan Administrator and the Bankruptcy Court in administering Avoidance Actions efficiently and fairly. By adopting the Procedures, parties will have a clear roadmap for future proceedings, and will simultaneously have the opportunity to reach amicable and speedy resolutions of the Avoidance Actions where possible, avoiding costly litigation that will necessarily reduce recoveries for the Plan Administrator’s beneficiaries. 20. Prior to commencing any adversary proceedings with respect to Avoidance Actions, the Plan Administrator will continue to attempt to resolve as many as it can on an extrajudicial basis. WHEREFORE, the Plan Administrator requests that the Bankruptcy Court enter an Order substantially in the form attached and granting this Motion and establishing procedures set forth herein for the orderly resolution of Avoidance Actions. Respectfully submitted, OXFORD RESTRUCTURING ADVISORS, LLC as the Trustee of the GenCanna Wind-Down Trust, By: /s/ Aaron L. Hammer

7

Aaron L. Hammer ahammer@hmblaw.com Admitted Pro Hac Vice Nathan E. Delman ndelman@hmblaw.com Admitted Pro Hac Vice HORWOOD MARCUS & BERK CHARTERED 500 West Madison Street, Suite 3700 Chicago, Illinois 60661 (312) 606-3200 -and- John P. Brice jbrice@wyattfirm.com WYATT TARRANT & COMBS LLP 250 West Main Street, Suite 1600 Lexington, Kentucky 40504 Telephone: (859) 288-7462 Facsimile: (859) 259-0649

8

CERTIFICATE OF SERVICE The undersigned attorney certifies that he caused a true and correct copy of the foregoing, NOTICE OF AND MOTION TO ESTABLISH PROCEDURES GOVERNING AVOIDANCE ACTION ADVERSARY PROCEEDINGS, to be filed electronically with the United States Bankruptcy Court for the Eastern District of Kentucky on November 30, 2021. Notice and a copy of this filing will be served upon all counsel of record by operation of the Court’s CM/ECF electronic filing system. In addition to the parties who were served electronically by Court’s ECF System, the undersigned attorney hereby certifies that he caused a true and correct copy of the above-mentioned document will be served on or about November 30, 2021 by first class U.S. mail, postage prepaid, upon all non-ECF creditors as listed on Master Service List [ECF No. 1415]. By: /s/ Aaron L. Hammer Counsel for Oxford Restructuring Advisors LLC, solely in its capacity as Plan Administrator for the GenCanna Wind- Down Trust

9