UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE Inre CRDENTIA CORP., et al./ Debtors.

Chapter 11 Case No. 10---~ (Joint Aclministration Requested)

DEBTORS' MOTION FOR AN ORDER PURSUANT TO BANKRUPTCY RULES 2002(1), 2002(m) AND 9007 TO ESTABLISH NOTICE PROCEDURES AND TO ESTABLISH A MASTER SERVICE LIST The above-captioned debtors and debtors in possession (each a "Debtor" and, collectively, the "Debtors") hereby move this Comt for the entry of an order substantially in the form attached hereto as Exhibit A (the "Order") pursuant to Rules 2002(1), 2002(m) and 9007 of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules") and Local Rule 2002-1 for the United States Bankruptcy Comt for the District of Delaware establishing notice procedures and establishing a Master Service List which would include and limit notice to the patties and entities set out in this Motion unless otherwise ordered by the Comt or otherwise limited by the Bankruptcy Rules. In addition, the Debtors seek authorization for service of pleadings by electronic mail ("email") as set forth herein. The Debtors further seek to establish monthly omnibus hearings. The facts and circumstances suppmting this motion (the "Motion") are set forth in the concunently filed Declaration of Rebecca Irish in Support of the Debtors' Chapter

The Debtors, along with the last four digits of their federal tax identification numbers, are: Crdentia Corp.(5701), ATS Universal, LLC (3980), Baker Anderson Christie, Inc. (3631), CRDE Corp. (2509), GHS Acquisition Corporation (9736), Health Industry Professionals, LLC (4246), HIP Holding, Irrc. (3468), MP Health Corp. (4403), New Age Staffing, Inc. (1214) and Nurses Network, Inc. (6291). The Debtors' mailing address for purposes of these cases is 1964 Howell Branch Road, Ste. 206, Winter Park, Florida 32792.

{BAY:01512147vl}

11 Petitions and First Day Pleadings. In support of the Motion, the Debtors respectfully represent as follows: Jurisdiction
1.

This Court has jurisdiction over this Motion under 28 U.S.C. 157 and

1334. Venue of these cases and this Motion in this district is proper under 28 U.S. C. 1408 and 1409. The predicates for the relief sought herein are section 105 of the Bankruptcy Code and Bankruptcy Rules 2002(1), 2002(m) and 9007. Relief Requested 2. The Debtors have thousands of creditors and parties in interest in these

chapter 11 cases. Hundreds of the creditors and other parties in interest likely will file requests for service of pleadings in these chapter 11 cases. The Debtors also expect that numerous motions and applications will be filed in these chapter 11 cases in pursuit of various forms of relief. Due to the significant number of creditors and other parties in interest, and to reduce the administrative costs and burden on the Debtors and other pmties, the Debtors request that this Court enter an order (i) establishing notice procedures and establishing a master service list (the "Master Service List") which would include and limit notice to the pmties and entities set out in this Motion unless otherwise ordered by the Court or otherwise limited by the Federal Rules of Bankruptcy Procedure; (ii) authorizing service of pleadings by email; and (iii) establishing monthly omnibus hearings. A. 3. Notice Procedures

Notice by mail of all pleadings and other papers filed in these cases to

each of the aforementioned pmties would be extremely burdensome and costly to the

- 2-

estates. Therefore, the Debtors propose the following procedures regarding notice in these chapter 11 cases (the "Notice Procedures"). 4. Any patiy in interest who wishes to receive notice of pleadings filed in

these chapter 11 cases shall file a written notice of appearance and request for service of papers, which shall include such pa1iy's (i) name; (ii) address; (iii) name of client, if applicable; (iv) telephone number; (v) facsimile number; and (vi) email address? The Debtors will maintain a list (the "2002 Service List") of all such requests received from paliies in interest (the "2002 Notices") and will update the 2002 Service List as often as practicable, but in no event less frequently than every ten ( 10) business days. Every time the 2002 Service List is updated, the Debtors will file it and will post it on their Claim Agent's web site. 5. Except as otherwise set fotih in the proposed order attached hereto, the

Debtors propose that all pleadings and documents filed with the Court in these chapter 11 cases, including the initiation of adversary proceedings, be served via email on the 2002 Service List, which shall be deemed to constitute proper service for all purposes on all parties who are sent such email service. All pleadings and documents served via email shall be in potiable document format, if available, and the subject line of the email shall indicate the Debtors' case name and the name of the pa1iy filing and serving such pleadings and/or documents (e.g., "In re Crdentia Corp. -Service by Debtors"). Further, pa1iies shall include the title(s) of the pleadings(s) and/or document(s) being served in the text of the email.

Parties who include more than one email address in their 2002 Notice must designate only one email address as the official email address for effectuating service. The additional email addresses will be added to the 2002 Service List for informational purposes only.

- 3-

6.

If a 2002 Notice fails to include an email address, such party will not be

added to the 2002 Service List and will not be served with copies of pleadings and documents filed in these cases unless such pleadings and/or documents directly affect such party. Any party who wishes to be exempt fi'om the obligation to provide an email address for the 2002 Service List and fi'om the obligation to accept email service must make a written request for such an exemption to counsel for the Debtors, Gersten Savage, LLP, 600 Lexington Avenue, 9th Floor (Attn: Paul Rachmuth). The Debtors will allow an exemption only upon good cause shown, and if the Debtors deny a requested exemption, such party may seek an exemption upon ftling the appropriate motion with the Court and after notice and a hearing. 7. The Debtors' proposed Master Service List, attached hereto as Exhibit

"A", would include and limit notice to the following parties and entities unless otherwise ordered by the CoUJt or otherwise limited by the Federal Rules of Bankruptcy Procedure: (a)
(b) (c) (d)

the Debtors; the Debtors' bankruptcy counsel, Gersten Savage LLP; the Debtors' local bankruptcy counsel, Bayard, P.A.; the United States Trustee; the twenty (20) largest unsecured creditors of the Debtors, on a

(e)

consolidated basis, requesting relief or against whom relief is requested until an official unsecured creditors' committee is appointed at which time as designated in subsection (f) below;

-4-

(f)

any official creditors' committee or other committee appointed

pnrsnant to the Federal Rules of Bankruptcy Procedure or the Bankruptcy Code and their counsel; (g) (h) (i) (j) the Debtors' secured lender, ComVest Capital, LLC ("ComVest"); counsel to ComVest; any entity whose interest is directly affected by a specific pleading; those persons or entities who formally appear and request service

in these proceedings pmsuant to Bankruptcy Rule 2002(i); and (k) the Intemal Revenue Service, Secmities and Exchange

Commission, and other govemmental entities required to receive notice under Bankruptcy Rule 2002(j). 8. The proceedings with respect to which notice would be limited to the

Master Service List would include all matters covered by Bankruptcy Rule 2002, with the express exception of the following matters: (a) the Bankruptcy Code; (b) the time for filing proofs of claim and interest pursuant to notice of the first meeting of creditors pmsuant to section 341 of

Banktuptcy Rule 3003(c); (c) notice of any disclosure statements and plans of reorganization and

transmittal of ballots for accepting or rejecting such plans; (d) the time fixed for filing objections and hearing to consider

approval of the disclosme statement and confrrmation of the Debtors' plan of reorganization; and

- 5-

(e) 9.

any matter governed by Bankruptcy Rule 2002(d).

The Debtors request that notice to the Master Service list be deemed

sufficient and proper for pmposes of Bankruptcy Rule 2002, except as provided in paragraph 17.
B. Document Requests and Access to Docket

10.

The Debtors also anticipate a large volume of document requests in these

cases. The Debtors will advise interested parties that paper copies of all pleadings and other documents filed in these chapter 11 cases may be obtained for a fee from the Court's copy service. Additionally, electronic copies of all pleadings and documents are available for a fee via PACER on the Court's web site at https://ecfdeb.uscourts.gov. 11. Further, contemporaneously herewith, the Debtors filed an application to

employ Omni Management Group, LLC as their claims and noticing agent (the "Claims Agent"). The Claims Agent maintains a web site at: www.omnimgt.com/sblite/crdentia, where electronic copies of certain pleadings and other documents will be posted within three (3) business days of filing and may be viewed free of charge.
C.

Omnibus Hearings

12.

Subject to the Court's schedule, and other than for good cause shown, the

Debtors request that all matters be heard on the Omnibus Hearing Dates. Given the large volume of pleadings that will be filed in these cases and the number of interested parties, the Debtors request the entry of an order scheduling regular monthly omnibus hearing dates (the "Omnibus Hearing Dates"). In the absence of omnibus hearings, parties in interest, including the Debtors, will be required to seek separate hearing dates for matters requiring a hearing. As a result, the need for hearings may increase and important matters requiring the Comt's consideration could be delayed, thus prejudicing the Debtors' - 6-

estates. The Debtors propose that the Omnibus hearing Dates for these cases be scheduled by the Court in connection with the hearing to consider the relief requested in this Motion. 13. To the extent any patiy requests permission from the Court to appear

telephonically at a heruing due to special circumstances, the Debtors request that such party be required to notify counsel for the Debtors by email regarding such request at least three (3) business days prior to the applicable hearing date. 14. The Debtors further propose that any entity submitting a matter for

consideration at an omnibus hearing be required to serve the applicable pleading and all suppmiing documentation no less than twenty (20) days prior to the applicable hearing date, if possible, and in no event, without order of the Comi, less than ten (10) days prior to the applicable hearing date. The notice accompanying such pleading shall include the title of the pleading, the time and date of the objection deadline (as determined below) and the omnibus hearing date (or other hearing date, as ordered by the Court) at which the patiy intends to present the pleading. Unless otherwise ordered by the Court, the objection deadline for all matters shall be (a) no later than the seventh (7th) calendat date before the applicable hearing date if the filing is served at least twenty (20) days prior to the applicable hearing date; or (b) no later than the third (3rd) calendar date before the applicable hearing date if the filing is served on less than twenty (20) but at least ten (10) days prior to the applicable heruing date. 15. While Omnibus Hearing Dates promote the expeditious and economical

administration of these cases, patties will retain their rights to seek expedited heruings, where appropriate. By scheduling the Omnibus Hearing Dates, the Comi will facilitate

-7-

the Debtors' reorganization efforts and the efficient administration of these cases by enabling both the Debtors and all parties in interest to prepare and present motions or other forms of relief in an orderly and timely basis. Additionally, such relief will minimize the costs associated with numerous and inegularly scheduled hearing dates.
Applicable Authority

16.

The Debtors respectfully submit that this relief is appropriate under the

Bankmptcy Code and the Bankmptcy Rules. Pursuant to section 105(a), "[t]he court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions" of the Banktuptcy Code. Bankmptcy Rule 9007 grants this Court general authority to regulate notice. Rule 9007 states: When notice is to be given under these rules, the court shall designate, if not otherwise specified herein, the time within which, the entities to whom, and the form and manner in which the notice shall be given. When feasible, the comt may order any notices under these rules to be combined. Fed. R. Bankt. P. 9007. 17. Bankruptcy Rule 2002(1) authorizes the Court to "order notice by

publication if it finds that notice by mail is impracticable or that it is desirable to supplement the notice." Fed. R. Bankt. P. 2002(1). Further, Bankruptcy Rule 2002(m) authorizes the court to "fiom time to time enter orders designating the matters in respect to which the entity to whom, and the form and manner in which notices shall be sent except as othetwise provided by these rules." Fed. R. Bankr. P. 2002(m). 18. The Debtors believe that providing notice as set forth in this Motion is

proper and sufficient under the existing circumstances. Pursuant to the notice procedures set fmth above, all patties in interest that may be affected directly by the relief sought by

- 8-

a patticular filing or pleading will receive notice of such filing or pleading. Thus, no party will be adversely affected by the relief requested herein. 19. Similarly, by scheduling the Omnibus Hearings Dates, the Comt will

facilitate the Debtors' reorganization effotts by enabling the Debtors and other parties in interest to prepare and present motions or applications on an orderly and timely basis, thus reducing the need for emergency hearings and/or expedited relief. In addition, such relief will likely minimize the costs and expenses associated with numerous and potentially inegularly scheduled hearing dates. 20. The establishment of noticing requirements will promote the Debtors'

reorganization effotts by preserving assets that otherwise would be consumed by unnecessary copying, postage, and related expenses. Such relief will benefit the Debtors' estates and their creditors by conserving resources, while at the same time not prejudicing the rights of any parties in interest in these cases. Therefore, the relief sought herein falls squarely within the four comers of section 105(a) of the Bankruptcy Code. 21. For the foregoing reasons, the Debtors believe the proposed notice

procedures are appropriate and should be approved and implemented in these chapter 11 cases.
No Prior Request

22.

The Debtors have not previously sought the relief requested herein from

this or any other Comt.

No Briefing Schedule Required

23.

The Debtors submit that this Motion does not present any novel issues of

law requiring briefing. Therefore, pursuant to Rule 7.1.2 of the Local Rules of Civil Practice and Procedure for the United States District Court for the District of Delaware

- 9-

(the "Local District Rules"), incorporated by reference into Local Rule 1001-l(b), the Debtors respectfully request that the Comt set aside the briefing schedule set fmth in Rule 7.1.2(a) of the Local District Rules.
Notice

24.

Notice hereofhas been provided to: (a) the Office of the United States

Trustee; (b) the Debtors' twenty (20) largest unsecured creditors on a consolidated basis; (c) counsel to ComVest, the Debtors' secured lender; and (d) those parties requesting notice pursuant to Bankruptcy Rule 2002 in accordance with Local Rule 2002-1 (b) (collectively, the "Notice Patties"). Notice hereof and any order entered hereon will be served in accordance with Local Rule 9013-1(m). In light of the nature of the relief requested herein, the Debtors submit that no other or further notice is necessary.

- 10-

WHEREFORE, the Debtors respectfully request that the Court enter an order (i) establishing notice procedures and establishing a Master Service List which would include and limit notice to the parties and entities set out in this Motion unless otherwise ordered by the Court or otherwise limited by the Federal Rules of Bankruptcy Procedure;

(ii) authorizing service of pleadings by electronic mail; (iii) establishing monthly

omnibus hearings, and (iv) granting such other and further relief as is just and proper.

Dated: March 17,2010 Wilmington, Delaware

BAYARD, P.A.

lsi Jamie L. Edmonson Jamie L. Edmonson (No. 4247) 222 Delaware A venue, Suite 900 Wilmington, DE 19801 Phone: (302) 655-5000 Fax (302) 658-6395
-andGERSTEN SAYAGE, LLP Paul Rachmuth 600 Lexington A venue New York, New York 10022 Telephone: (212) 752-9700 Facsimile: (212) 980-5192

Proposed Counsel for the Debtors and Debtors in Possession

- 11-

Exhibit A

UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE

In re CRDENTIA CORP., eta!./ Debtors.

Chapter 11 Case No. 10-_ __ (Joint Administration Requested)

ORDER PURSUANT TO BANKRUPTCY RULES 2002(1), 2002(m) AND 9007 TO ESTABLISH NOTICE PROCEDURES AND TO ESTABLISH A MASTER SERVICE LIST

Upon the Motion2 of the above-captioned Debtors for entry of an order (i) establishing notice procedures and establishing a Master Service List which would include and limit notice to the parties and entities set out in the Motion unless otherwise ordered by this Court or otherwise limited by the Bankruptcy Rules; (ii) authorizing service of pleadings by electronic mail; and (iii) establishing monthly omnibus beaTings pursuant to Bankruptcy Rules 2002(1), 2002(m) and 9007; and it appearing that no other or further notice is required; and it appearing that this Comt has jurisdiction to consider the motion in accordance with 28 U.S.C. 157 and 1334; and it appearing that this is a core proceeding pursuant to 28 U.S.C. 157(b)(2); and it appearing that the venue of this proceeding and this Motion is proper pursuant to 28 U.S. C. 1408 and 1409; and it appearing, after due deliberation, that the relief requested is in the best interest of the Debtors, their estates and creditors; and sufficient cause appearing therefor; it is hereby: ORDERED, that the Motion is granted; and it is futther

The Debtors, along with the last four digits of their federal tax: identification numbers, are: Crdentia Corp.(5701), ATS Universal, LLC (3980), Baker Anderson Christie, Inc. (3631), CRDE Corp. (2509), GHS Acquisition Corporation (9736), Health Industry Professionals, LLC (4246), HIP Holding, Inc. (3468), MP Health Corp. (4403), New Age Staffing, Inc. (1214) and Nurses Network, Inc. (6291). The Debtors' mailing address for purposes of these cases is 1964 Howell Branch Road, Ste. 206, Winter Park, Florida 32792.
2

Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Motion.

-2-

ORDERED, that the Debtors shall establish notice procedures and establish a Master Service List which would include and limit notice to the patties and entities set out in the Motion, unless othetwise ordered by the Court or otherwise limited by the Federal Rules of Bankruptcy Procedme; and it is further ORDERED, that any patty in interest who wishes to be included on the 2002 Service List and receive notice of pleadings filed in these chapter I I cases shall file a written notice of appearance and request for service of papers, which shall include such party's (i) name; (ii) address; (iii) name of client, if applicable; (iv) telephone number; (v) facsimile number; and (vi) email address; and the Debtors will maintain and update the 2002 Service List with such requests as often as practicable, but in no event less fiequently than every ten (10) business days; and it is further ORDERED, that except as othetwise set forth in this Order, all pleadings and documents filed with the Court in these chapter 11 cases, including the initiation of adversaty proceedings, shall be served via email on the 2002 Service List, which shall be deemed to constitute proper service for all pmposes on all patties who are sent such email service; and it is futther ORDERED that any patty who wishes to be exempt from providing an email address for the 2002 Service List must make a written request for such an exemption to counsel for the Debtors, Gersten Savage, LLP, 600 Lexington Avenue, 9th Floor (Attn: Paul Rachmuth), which request shall be granted only for good cause; and it is further ORDERED that upon request of a creditor or party in interest, the Court may further modify notice provided herein for a patticular matter; and it is further ORDERED that, except as othetwise determined by the Court; the Omnibus Hearing Dates for these cases will be scheduled as follows: ; and it is further

- 3-

ORDERED that service of the Motion as provided therein shall be deemed good and sufficient notice of such Motion; and it is further ORDERED, that the Debtors are hereby authorized and empowered to take all actions necessary to implement the relief granted in this Order; and it is further ORDERED, that this Comi shall retain jurisdiction with respect to all matters arising from or related to the implementation of this Order.

Dated: March _, 20 I 0 Wilmington, Delaware THE HONORABLE _ _ _ _ _ _ _ __ UNITED STATES BANKRUPTCY ruDGE

-4-