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.J u o .... _j '"0 (/}-;;; . 15 co .so* .. -0> +-J " :;;E . 16 .g- i:2 17 18 19 20 21 22 23 24 25 26 27 28 Todd C. Ringstad (State Bar No. 97345) todd@ringstadlaw.com Nanette D. Sanders (State Bar No. 120169) nanette@ringstadlaw .com Christopher A. Minier cminier@ringstadlaw.com RINGSTAD & SANDERS LLP 2030 Main Street, 12 1 h Floor Irvine, CA 92614 Telephone: 949.851.7450 Facsimile: 949.851.6926 Counsel for Committee of Creditors Holding Unsecured Claims UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA...;... SANTA ANA DIVISION In re CRYSTAL CATHEDRAL MINISTRIES, Debtor and Debtor-in-Possession . CASE NO. 8:10-bk-24771-RK: Chapter 11 Proceeding NOTICE OF MOTION AND MOTION BY OFFICIAL COMMITTEE OF CREDITORS HOLDING UNSECURED CLAIMS FOR AN ORDER SETTING DEADLINE FOR CERTAIN PARTIES TO FILE (1) ADMINISTRATIVE CLAIMS OR REQUESTS FOR ALLOWANCE OF ADMINISTRATIVE CLAIMS, AND, (2) CONTRACT REJECTIONS CLAIMS; MEMORANDUM OF POINTS AND AUTHORITIES; DECLARATION OF NANETTE D. SANDERS [NO HEARING REQUIRED UNLESS REQUESTED] (Local Bankruptcy Rule 9013-l(o)(1)) TO THE HONORABLE ROBERT KWAN, UNITED STATES BANKRUPTCY JUDGE, OFFICE OF THE UNITED STATES TRUSTEE, AND TO ALL INTERESTED PARTIES: In furtherance of its ability to confirm its previously filed Plan of Reorganization (the "Plan"), the Official Committee Holding Unsecured Claims (the "Committee"), appointed in the bankruptcy case of In re Crystal Cathedral Ministries (the "Debtor"), hereby Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 2 of 21 1 2 3 4 5 6 7 8 9 10 11 fJ) 12 1-r Q) .. '"'d 2:!: 13 l.t.>O co -" N ':f) r-."'o ....... "" 14 . 0.. u ..... ....1 ., o- ..J '"'d {/) ...... 15 co .. ""'
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17 18 19 20 21 22 23 24 25 26 . 27 28 respectfully submits this Motion for an Order Pursuant to Bankruptcy Code lOS( a) Setting a Deadline for Certain Known Potential Creditors to File (1) Administrative Proofs of Claim or Requests for Allowance of Any Administrative Claim(s), or, (2) Contract Rejection Claims(the "Motion"). Specifically, by way of this Motion, the Committee seeks an Order requiring all of the potential claimants listed below, to file any administrative proof of claim, or request for allowance of any administrative.claim which they intend to assert against the Debtor's bankruptcy estate, and also file any claim arising out of the rejection or intended rejection of any contract to which such potential claimant is a party, no later than 30 days following the Committee's service of a written Notice of deadline on such parties (the "Administrative and Insider Contract Rejection Claims Bar Date"): 1. Dr. Robert H. Schuller; 2. Mrs. Arvella Schuller; 3. Robert A. Schuller; 4. Jeanne Dunn; 5. Paul Dunn; 6. Timothy Milner; 7. Carol Milner; 8. Robert Harold, Inc.; 9. James Penner; 10. Gretchen Penner, 11. Sheila Coleman; 12. James Coleman; 13. Fred Southard; 14. Greenlaw Acquisitions, LLC; and, 15. CB Richard Ellis. Hereafter each of the foregoing parties potentially holding administrative and/or other claims shall collectively be referred to as the "Potential Claimants." -2- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 3 of 21 00 H'
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 It should be noted that neither the instant Motion, nor the proposed Administrative and Insider Contract Rejection Claims Bar Date, apply to the administrative claims ofany "insiders" of the Debtor for whom a "Notice of Setting I Increasing Insider Compensation" has been filed, nor to any person or entity that has been employed at the expense of the Debtor's bankruptcy estate pursuant to an Order of the Bankruptcy Court. It should further be noted that nothing in this Motion shall be construed as seeking to extend or extending the now expired bar date for the filing of claims against the estate. The Motion is based upon the Notice of Motion filed concurrently herewith, the attached Memorandum of Points and Authorities, the Declaration ofNanette D. Sanders filed herewith, the pleadings and files in this chapter 11 proceeding, and upon such further evidence as may be presented to the Court in support of this Motion. IF YOU DO NOT OPPOSE THE MOTION, you need take no further action. IF YOU WISH TO OPPOSE THE MOTION, Local Bankruptcy Rule 9013-1(f)(1) and 9013-1(o)(1)(A)(ii)require you to file and serve a written Response and Request for Hearing within fourteen (14) days from the date of service (mailing) of this Notice. You must serve a copy of your response and request for a hearing upon the Committee's counsel, Nanette D. Sanders, of Ringstad & Sanders, LLP, located at 2030 Main Street, Suite 1200, Irvine, CA 92614, counsel for the Debtor, MarcJ. Winthrop, of Winthrop Couchot, located at 660 Newport Center Drive, Suite 400, Newport Beach, CA 92660, and upon the Office of the United States Trustee, located at 411 West Fourth Street, Suite 9041, Santa Ana, CA 92701. Such Response and Request for Hearing must also be timely filed (with a duplicate copy) with the Bankruptcy Court Clerk, located at 411 West Fourth Street, Santa Ana, CA 92701. PLEASE TAKE FURTHER NOTICE that Pursuant to Local Bankruptcy Rule 9013- 1(f)(1) and 9013-1(o)(4), such Response must contain "[a] complete written statementofall reasons in opposition thereto ... declarations and copies of all photographs and documentary evidence on which the responding party intends to rely, and any responding memorandum of points and authorities." Failure to timely file and serve such Response and Request for Hearing might result in the Court's granting the Motion and without any hearing. SEE LOCAL -3- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 4 of 21 1 2 3 4 5 6 7 8 9 10 11 en 12 ~ ~ .... 13 0'<1- ~ 2- U.'-0 C\S -' N 'J) ;:.,.o-0 ...... "' 14 :.2) . .;;::;! CL.c U ..... I ..J u o- .J t ~ ~ '"d {/);:; . 15 C\S . = u ~ .. 0> ~ ~ ~ ~ ~ - ~ 16 ~ g- ~ 17 18 19 20 21 22 23 24 25 26 27 28 BANKRUPTCY RULE 9013-1. WHEREFORE, the Committee respectfully requests that this Court enter an Order pursuant to Bankruptcy Code 105(a): 1. Setting an Administrative and Insider Contract Rejection Claims Bar Date thirty (30) days following the Committee's service of a Notice thereof, for each of the above-described Potential Claimants to file any administrative proofs of claim and/or requests for the allowance of any administrative claim, as to which the claimant seeks administrative priority status under Section 507(a)(2) and 503(b) of the Bankruptcy Code and any claims arising out of the rejection or intended rejection of any contract to which such claimants allege they are a party; 2. Ordering that any Potential Claimant who fails to file such an administrative proof of claim, request for the allowance of an administrative claim, or contract rejection claim by noticed bar date shall be forever barred and estopped from asserting any such claim against the bankruptcy estate; and, 3. For such other and further relief as the Court deems just and proper. Dated: September 20,2011 Respectfully Submitted, RINGSTAD & SANDERS LLP By: Is/ Nanette D. Sanders Nanette D. Sanders Christopher A. Minier Counsel for Committee of Creditors Holding Unsecured Claims -4- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 5 of 21 1 2 3 4 5 6 7 8 9 10 11 rJ) 12 1-1
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r--.o.o .... ""' 14 . .rr:;! . , -S '"d (/) ...... 15 C\.1 .. 0. .1-J g}, .16 g- i:Z 17 18 19 20 21 22 23 24 . 25 26 27 28 MEMORANDUM OF POINTS AND AUTHORITIES I. STATEMENT OF FACTS A. General Background. Crystal Cathedral Ministries, a California nonprofit corporation (the "Debtor"), is a church I ministry that was founded in 1955 by the Reverend Dr. Robert H. Schuller and his wife. Over the last few years, the Debtor's leadership has gone through two major changes as the ministry has endeavored to transition from its founders to the next generation, who have attempted to carry the mission of the ministry forward. Robert A. Schuller became Senior Pastor in 2006. He ultimately resigned and Dr. Sheila Schuller Coleman became the Senior Pastor in July of 2009. The period of unsettled leadership caused some in the congregation and viewing audience to leave the ministry, resulting in reduced revenue for an organization that exists primarily on donations. However, the greatest impact on the Debtor's revenues carrie from th_e severe downturn in the national economy, which has had a drastic impact on donations to the Debtor and to charitable giving in general. The following is a summary of the Debtor's pre-petition financial performance, which clearly shows a significant downward trend in its revenue over the past several years: 2010 2008 2009 (January 1, 2010 to October 17, 2010) Gross Revenue $54,582,004 $41,207,319 $22,284,516 The Debtor and a pre-petition creditors' committee began efforts in April2010 to reach a consensual arrangement for the repayment of the approximately $12,500,000 in non-insider unsecured debt asserted against the Debtor. When those efforts failed, the Debtor filed a voluntary Chapter 11 petition on October 18, 2010 (the "Petition Date"). Since the Petition Date, the Debtor has been acting as a debtor-in-possession pursuant to Bankruptcy Code 1107 and 1108. -5- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 6 of 21 rJ)
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1 The Office of the United States Trustee appointed the Official Committee of Creditors 2 Holding Unsecured Claims (the "Committee") pursuant to Bankruptcy Code 1102(a)(1) on 3 October 27,2010. 4 The Debtor sought and obtained a general claims bar date ofFebruary 28,2011. One or 5 more of the Potential Claimants filed timely general unsecured claims that do not state specific 6 . claim amounts. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The Debtor filed a proposed Plan or Reorganization on or about May 30,2011, which was premised upon a sale of the ministry's real property (the "Property") to a third party, subject to overbidding and certain stalking horse protections to the third party. The Committee opposed the Debtor's Plan because it was aware of multiple parties that were interested in purchasing the Property on terms more favorable to the estate than the terms identified in the Debtor's proposed Plan. On July 31, 2011 the Debtor's exclusivity rights expired and on August 1, 2011 the Debtor verbally withdrew its proposed Plan, which withdrawal was formalized on August 12, 2011. On August 9 and 11,2001, the Committee filed, respectively, its own Disclosure Statement and proposed Plan of Reorganization for the Debtor. The Committee's Plan provides for a sale of the Debtor's Property to a buyer to be selected by the Committee (with or without the Debtor's participation and approval.) Under the Committee's Plan, such a sale of the Debtor's Property, along with of other assets of the estate 1 , is intended to provide the means by which the Debtor's general unsecured creditors can receive substantial distributions ort account of their claims. A hearing on approval of the Committee's Disclosure Statement was held on September 14, 2011, at which time the Disclosure Statement, as amended, was approved. A plan confirmation hearing is now scheduled for November 14, 2011. B. The Treatment of Administrative Claims Under the Plan. The Committee's Plan and Disclosure Statement provide that "each Allowed Administrative Claim shall be paid in Full, in Cash, on the latest of (i) the Effective Date, {ii) the tenth (1oth) Business Day after the date upon which such Administrative Claim becomes an . 1 And, if necessary, on-going payments from the Debtor's post-confirmation operations, if any. -6- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 7 of 21 tr.J 1-o: Q) "'d s:!: IL'-0 ro "' ':f) r-.o-o -........ :<j . .;a;!: o..r u ...... j "'d (/) ..... ro " -a- +-1 ::E g}, g- cz 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Allowed Administrative Claim, or (iii) the date upon which such Allowed Administrative Claim becomes due according to its terms." [Committee's Disclosure Statement, p. 34-35]. The Plan further provides that the allowed claims of insiders (as defined therein) shall be subordinated to the claims of general unsecured creditors, either voluntarily by the insider or following resolution of adversary proceedings seeking such subordination. With regard to the claims of"insiders" of the Debtor, the Committee's Plan and Disclosure Statement provide that: In the event that any Insider Administrative Creditor votes to accept this Plan, then the payment of the Administrative Claims of each such Insider who votes to accept this Plan will be subordinated until all Allowed Unsecured Claims are Paid in Full. In the event that any Insider Administrative Creditor votes to reject this Plan, the Committee will proceed to file a formal objection to the Administrative Claim of such rejecting Insider Administrative Creditor and commence any necessary adversary proceeding to determine whether such Claim shall be equitably subordinated to all Allowed General Unsecured Claims, on the basis, among others, that such Insider did not provide any value to the Estate which would otherwise give rise to a valid Claim. If the Court in such proceeding does not order equitable subordination as to an Insider, then the Claims of that Insider will be treated as Administrative Claims following resolution of any formal objection(s) filed as to each such Claim by the Committee, the Plan Agent or the Debtor. [Comniittee's proposed Plan, p. 17]. The Committee's Plan and Disclosure further provide that: Any holder of an Administrative Claim that does not file and properly serve such a request for payment by the General Administrative Claims Bar Date and the Bar Date for Section 503(b )(9) Claims, the case may be, shall be forever barred from -7- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 8 of 21 1 2 3 4 5 6 7 8 9 10 11 . 00 12 1-1 <l) .. "'0 .2:!: 13 u.-o ro if) ;:..,o-0 - .. "' 14 . a.. v ..... . :] "'0 (/)-;; . 15 ro .. 0..
00 o- 0.0 ,..., 16 ;;- r:2 17 18 19 20 21 22 23 24 25 26 27 28 asserting such Administrative claim against the Debtor, the Reorganized Debtor, its Estate, or any of its property, or the Committee. [Committee's proposed ;plan, p. 17]. The "General Administrative Claims Bar Date" is defined in the Committee's Plan and Disclosure Statement as: "the date by which all requests for payment of Administrative Claims, with the exception of Administrative Tax Claims and Section 503(b )(9) Administrative Claims, shall be filed and served upon the Committee and the Debtor." [Committee's proposed Plan, pp. 11-12]. C. The Potential Claimants. It has come to the attention of the Committee that certain "insiders" of the Debtor and other parties in interest may contend that they hold as yet undisclosed administrative and contract rejection claims against the Debtor's bankruptcy estate under Bankruptcy Code 503 and possibly 365(g). The identities of the Potential Claimants which the Committee believes may attempt at some future date to assert administrative or contract rejections claims are as follows: 1. Dr. Robert H. Schuller; 2. Mrs. Arvella Schuller; 3 .. Robert A. Schuller; 4. Jeanne Dunn; 5. Paul Dunn; 6. Timothy Milner; 7. Carol Milner; 8. Robert Harold, Inc.;. 9. James Penner; 10. Gretchen Penner; 11. Sheila Coleman; 12. James Coleman; -8- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 9 of 21 1 2 3 4 5 6 7 8 9 10 11 rJ) 12 I-I v ""0 2::: 13 u..-o (lj .< N ':f) ;:_,o-0 ...... .,.., 14 . r 0... U ...., ...I ., o ....
""0 Ul Oi 15 ro .:u* "' 0< -1-1 rJ) 0-- OJ) ..., i:: 16 2- cz 17 18 19 20 21 22 23 24 25 26 27 28 13. Fred Southard; 14. Greenlaw Acquisitions, LLC; and, 15. CB Richard Ellis. The Committee hereby requests that the Court enter an Order requiring each of the foregoing Potential Claimants to file any {1) administrative or other proof of claim, and/or request for the allowance of any administrative claim; and/or (2) claim arising out of the rejection or proposed rejection of any contract to which such Potential Claimant is a party, which they intend to assert against the Debtor's bankruptcy estate, no later than 30 days following the Committee's service of a Notice of Deadline to File Administrative and Insider Contract Rejection Proofs of Claim and/or Requests for Allowance o_f Administrative Claim(s) on such parties. II. -ARGUMENT AND APPLICABLE LEGAL AUTHORITY Bankruptcy Code 503(a) and (b) allow parties to request, and the Court to grant, administrative priority status to a number of different types fees and expenses which are generally associated with the protection, preservation and enhancement of the bankruptcy estate. More particularly, Bankruptcy Code 503(a) and (b) provide, in part, that: (a) An entity may timely file a request for payment of an administrative expense, or may tardily file such request if permitted by the Court for cause. (b) After notice and a hearing, there shall be allowed administrative expenses ... , including (1 )(A) the actual, necessary costs and expenses of preserving the estate including - (i) wages, salaries, and commissions for services rendered after the commencement ofthe case; ... *** (2) compensation and reimbursement awarded under section 330(a) of this title; -9- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 10 of 21 1 2 3 4 5 6 7 8 9 10 11 rJ) 12
24 25 26 27 28 (3) the actual, necessary expenses, other than compensation and reimbursement specified in paragraph ( 4) of this subsection, incurred by- ... (D) a creditor, an indenture trustee, an equity security holder; or a committee representing creditors or equity security holders other than a committee appointed under section 1102 of this title, in making a substantial contribution in a case under chapter 9 or 11 of this title; ... (4) reasonable compensation for professional services rendered by an attorney or accountant of an entity whose expense is allowable under subparagraph (A), (B), (C), (D), or (E) of paragraph (3) of this subsection, ... and reimbursement for actual, necessary expenses incurred by such attorney or accountant; ... 2 As was recognized by the court in In re PT-1 Communications, Inc., 403 B.R. 250,259 (Bankr. E.D.N.Y. 2009), bankruptcy courts have the discretion and inherent authority under Bankruptcy Code 105 to set a deadline for parties to file requests for the allowance of administrative claims. Specifically, the PT-1 Communications court stated: Bankruptcy Rule 3003( c )(3) provides that a court "shall fix" a bar date by which proofs of claim in a Chapter 11 case shall be filed. Fed. R. Bankr. P. 3003(c)(3). Although there is no provision relating to a bar date for requesting an administrative expense . payment, courts may set such a date pursuant to Bankruptcy Code 105. See In re Reams Broad. Corp., 153 B.R. 520, 522 (Bankr. N.D. Ohio 1993). An administrative bar date serves the same purpose as a claims bar date, which is "finality and debtor rehabilitation," 9 2 These quoted portions of Bankruptcy Code 503 are meant to be merely illustrative of some of the the types of fees and costs that are entitled to administrative priority under this section, and are not an exhaustive list of the types of claims that may receive administrative expense priority under 503. - 10- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 11 of 21 1 2 3 4 . 5 6 7 8 9 10 11 rn 12 H 0,) ""'d ..2:!: 13 IL>O l;lj M r.f) ;:.:.o.o - .. .,., 14 0... u $.o :! . ""'d 15 l;lj ;; 0\ -1-1
16 g- r:2 . 17 18 19 20 21 22 23 24 25 26 27 28 Collier ori 3003.03[4] (Alan N. Resnick & Henry J. Sommer eds., 15th ed. rev.), and "enable[es] the parties to a bankruptcy case to identify with promptness the identity of those making claims against the bankruptcy estate and the general amount of the claims, a necessary step in achieving the goal of . successful reorganization," First Fidelity Bank, NA., N.J. v. Hooker Invs., Inc. (In re Hooker Invs., Inc.), 937 F.2d 833, 840 (2"d Cir. 1991 ). Allowing requests for administrative expense payment to be filed at any time would have the same effect as allowing proofs of claim to be filed at any time, undermining "the institutional means of ensuring the sound administration of the bankruptcy estate." Hooker, 937 F.2d at 840. Similarly, in In re LTV Steel Company, Inc., 288 B.R. 775, 779 (Bankr. N.D. Ohio 2002), the court stated that: "The court may issue any order, process, or judgment that is necessary or appropriate to carry out the. provisions of this [bankruptcy] title." 11 U.S.C. 105(a) .... The administrative expense deadline stems from the policy that "'[i]t is essential that administrative claims, which are entitled to first priority in a bankruptcy distribution, be established with finality before any distribution may be made to any subordinate classes of creditors."' Reams, 153 B.R. at 522-23 (quoting In re Holywell Corp., 68 B.R. 134, 137 (Bankr. S.D. Fla. 1986)). See also, In re Marchfirst, Inc., 448 B.R. 499, 506 (Bankr. N.D. IL 2011)("Section 503(a) ofthe Code provides that ' [a ]n entity may timely file a request for payment of an administrative expense, or may tardily file such request if permitted by the court for cause.' 11- U.S.C. 503(a). This section implicitly confers on bankruptcy courts the power to set deadlines for the filing administrative expense requests."); In re Southern Soya Corp., 251 B.R. 302, 311 (Bankr. D. SC - 11 - Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 12 of 21 in t-;: (I) .. ""d .2:! U.\0 ro -" M ':f)
...... "' . .;;:;! 0... tl ... j ""d U)" . ro "'-a- +-J ::E fJ) 0 - co ..., g- C2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23. 24 25 26 27 28 2000)("Neither the Bankruptcy Code nor the Federal Rules of Bankruptcy Procedure, however, set forth a deadline within which administrative claims must be filed; rather, 'courts can exercise their discretion in setting bar dates according to the circumstances of each case.'). In light of the foregoing authorities, it is clear that the Court has the discretionary autho"rity to set a claims bar date requiring the Potential Claimants to assert any administrative claims and contract rejection Claims which they contend that they hold by a date certain. Moreover, with a hearing on confirmation of the Committee's Plan now set-for November 14, 2011, it is necessary and appropriate for the Court to require the Potential Claimants to expeditiously assert any administrative and contract rejection claims which they contend they hold. As described in detail above, the Committee's Plan generally provides that allowed administrative claims will be paid on the latter of the Effective date of the Plan, or upon the allowance of the administrative claim. Thus, it can be expected that the Debtor will be required to pay a substantial dollar amount of administrative expense claims in the months following Plan confirmation. Accordingly, in connection with Plan confirmation I feasibility requirements, it is important that the Committee know the extent to which parties are asserting administrative and contract rejection claims against the bankfuptcy estate (and the extent to which the Debtor will potentially need to pay administrative expense claims in the months following confirmation) prior to a hearing beingheld on Confirmation of the Committee's Plan. For identical reasons, the Committee must also know what administrative and contract rejection claims are being asserted against the estate in order to be able to review such claims and make a determination whether . grounds exist to object to such claims. As the court stated in LTV Steel Co. supra, 288 at 779 "[i]t is essential that administrative claims, which are entitled to first priority in a bankruptcy distribution, be established with finality before any distribution may be made to any subordinate classes of creditors." Further, and as also discussed above, the Committee's Plan provides for the subordination of the claims (administrative or otherwise) of the Debtor's insiders.to the payment of the Debtor's general unsecured creditors. In order for the Committee to. determine which claims should be - 12- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 13 of 21 fJ)
2- 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 . 21 22 23 24 25 26 27 28 subordinated under the Plan and necessary adversary actions to accomplish such subordination filed, it is necessary for the Potential Claimants, most of whom are insiders, to be required to assert any claims which they contend that they hold. For the foregoing reasons, the Motion should be granted and the Court should enter an Order requiring each of the foregoing Potential Claimants to file any administrative or contract rejection proofs of claim, and/or request for the allowance of any administrative claim, which they intend to assert against the Debtor's bankruptcy estate, no later than 30 days following the Committee's service of a Notice of Deadline to File Administrative and Insider Contract Rejection Proofs of Claim and/or Requests for Allowance of Administrative Claim(s) on such parties. The Court's Order should further recite that any of the Potential Claimants who fail to file an administrative and/or contract rejection proof of claim, and/or request for the allowance of an administrative claim, by the established bar date shall be forever barred and estopped from asserting any claim against the bankruptcy estate of the Debtor . . A proposed form of bar date notice is attached as Exhibit "A" to the supporting Declaration ofNanette D.-sanders and incorporated herein. DATED: September 20,2011 Respectfully submitted, RINGSTAD & SANDERS LLP By: Is/ Nanette D. Sanders Nanette D. Sanders Christopher A. Minier General Insolvency Counsel to the Committee of Creditors Holding Unsecured Claims - 13- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 14 of 21 1 2 3 4 5 6 7 8 9 10 11 V) 12 j...( OJ ""'d _9:!: 13 u..-o C'j M if) ;:._,o-0 ...... "' 14 . .;;:;!: tl.t: ......... j ""'d _(I) ... ro 15 "' 0\
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17 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF NANETTE D. SANDERS I, Nanette D. Sanders, declare: 1. I am an attorney duly licensed to practice law in the State of California and before this Court. I am a partner with the firm ofRingstad & Sanders LLP (the "Firm"), counsel for the Committee of Unsecured Creditors (the "Committee") in the matter .of In re Crystal Cathedral Ministries, Inc. (the "Debtor"). I make this declaration on facts within my personal knowledge and if called upon to do so, could and would competently testify hereto. 2. Pre-petition, in or about April, 2010, the Debtor commenced out of court restructure efforts with its general unsecured creditors in an effort to reach a consensual arrangement for the repayment of the approximately $12,500,000 in non-insider unsecured debt asserted against the Debtor. An informational meeting was held on April9, 2010, at which time 9 creditors 3 volunteered to sit on an informal creditors committee (the "Pre Petition Committee") . and work with the Debtor in an effort to formulate a repayment plan. The Pre Petition Committee engaged the Firm, at the expense of the Debtor, to act as its legal advisor in connection with the informal restructure efforts. 3. When the Debtor's efforts to negotiate a repayment plan with the Pre Petition Committee failed, the Debtor filed a voluntary Chapter 11 petition on October 18,2010 (the "Petition Date"). Since the Petition Date, the Debtor has been acting as a debtor-in-possession pursuant to Bankruptcy Code 1107 and 1108. 4. The Office of the United States Trustee appointed the Official Committee of Creditors Holding Unsecured Claims (the "Committee") pursuant to Bankruptcy Code 1102(a)(1) on October 27,2010. The Firm is the Committee's counsel in the Debtor's bankruptcy case. 5. The Debtor filed a proposed Plan or Reorganization on or about May30, 2011, which was premised upon a sale of the ministry's real property (the "Property") to a third party, subject to overbidding and certain stalking horse protections to the third party. The Committee opposed the Debtor's Plan because it was aware of multiple parties that were interested in 3 One creditor subsequently resigned and the Pre Petition Committee continued with 8 members. - 14- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 15 of 21 1 2 3 4 5 6 7 8 9 10 11 r.rJ 12 j....( OJ '"d 13 Q u.-o C'\S ""N 'J) Mo-O - ... "' 14 --<I'"
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16 . Q g- i:2 17 18 19 20 21 22 23 24 25 26 27 28 purchasing the Property on terms more favorable to the estate than the terms identified the Debtor's proposed Plan. On July 31, 2011 the Debtor's exclusivity rights expired and on August 1, 2011 the Debtor verbally withdrew its proposed Plan, which withdrawal was formalized on August 12, 2011. 6. On August 9 and 11,2001, the Committee filed, respectively, its own Disclosure Statement and proposed Plan of Reorganization for the Debtor. The Committee's Plan provides for a sale of the Debtor's Property to a buyer to be selected by the Committee (with or without the Debtor's participation and approval.) Under the Committee's Plan, such a sale of the Debtor's Property is anticipated to provide the means by which the Debtor's general unsecured creditors can receive substantial distributions on account of their claims. A hearing on approval of the Committee's Disclosure Statement was held on September 14,2011, at which time the Disclosure Statement was approved. 7. It has come to the attention of the Committee that certain "insiders" of the Debtor and other parties in interest may contend that they hold undisclosed administrative priority and contract rejection claims against the Debtor's bankruptcy estate under Bankruptcy Code 503(b) and 365. The. identities of the insiders and other parties which the Committee believes may attempt at some future date to assert such claims are as follows: (a) Dr. Robert H. Schuller; (b) Mrs. Arvella Schuller; (c) Robert A. Schuller; (d) Jeanne Dunn; (e) Paul Dunn; (f) Timothy Milner; (g) Carol Milner; (h) Robert Harold, Inc.; (i) James Penner; G) Gretchen Penner; (k) Sheila Coleman; - 15- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 16 of 21 1 2 3 4 5 6 7 8 9 10 11 (/) 12 ;...c Q) .. ""d .2::': 13 U..\0 cd .., N rJ) i'lo.o - .. "' 14 . c... u ..... :i ""d (/)" . cd 15 .. 0. .4-J
16 . ::::- 2:Z 17 18 19 20 21 22 23 24 25 26 27 28 (1) James Coleman; (m) Fred Southard; (n) Greenlaw Acquisitions, LLC; and, ( o) CB Richard Ellis. Each of the foregoing parties potentially holding administrative or other claims are collectively referred to herein as the "Potential Claimants." 8. The Debtor sought and obtained a general claims bar date of February 28,2011. One or more of the Potential Claimants filed timely general unsecured claims. 9. A hearing on confirmation of the Committee's Plan has now been scheduled for November 14, 2011 and, for the reasons set forth in the attached of Points and Authorities, the Committee believes that it is exceedingly necessary and appropriate for the Court to now require the Potential Claimants to expeditiously assert any administrative and contract rejection claims which they contend they hold against the bankruptcy estate. I declare under penalty of perjury that the foregoing is true and correct. Executed this 20th . day of September, 2011, at Irvine, California. Is/ Nanette D. Sanders -16- Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 17 of 21 Todd C. Ringstad (State Bar No. 97345) todd@ringstadlaw.com Nanette D. Sanders (State Bar No. 120169) nanette@ringstadlaw .com RINGSTAD & SANDERS LLP 2030 Main Street, 12th Floor Irvine, CA 92614 Telephone: 949.851.7450 Facsimile: 949.851.6926 Counsel for Committee of Creditors Holding uNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA- SANTA ANA DIVISION In re: CRYSTAL CATHEDRAL MINISTRIES, a California nonprofit corporation, Debtor and Debtor-in-Possession. Case No. 8:10-bk-24771 RK Chapter 11 Proceeding NOTICE TO CERTAIN PARTIES OF BAR DATE FOR THE FILING OF ADMINISTRATIVE CLAIMS OR REQUESTS FOR ALLOWANCE OF ADMINISTRATIVE CLAIMS, AND/OR CONTRACT REJECTION CLAIMS (October_, 2011] [No Hearing Set] TO: Dr. Robert H. Schuller; Mrs. Arvella Schuller; Robert A. S.:huller; Jeanne Dunn; Paul Dunn; Timothy Milner; Carol Milner; Robert Harold, Inc.; James Penner; Gretchen Penner; Sheila Coleman; James Coleman; Fred Southard; Greenlaw Acquisitions, LLC; and, CB Richard Ellis: PLEASE TAKE NOTICE THAT THE BANKRUPTCY COURT HAS SET A DEADLINE OF OCTOBER_, 2011 FOR THE ABOVE REFERENCED PARTIES TO FILE (1) ANY REQUEST FOR PAYMENT OF AN ADMINISTRATIVE EXPENSE OR PROOF OF CLAIM FOR A CLAIM ASSERTED AS A PRIORITY CLAIM UNDER SECTIONS 507(a)(2) AND 503(b) OF THE BANKRUPTCY CODE; AND (2) ANY CLAIM ARISING FROM THE REJECTION OF ANY EXECUTORY CONTRACT OR LEASE PURSUANT TO SECTION 365(a) OF THE BANKRUPTCY CODE. The Order of the Court establishing the above deadline does not extend the February 28,2011 deadline for the filing of claims that arose before the commencement of the case established by prior Order of the Court. Any claim of the above-referenced parties that is untimely pursuant to the Court's previous Order establishing the February 28, 2011 deadline for the filing of general unsecured claims is not rendered timely by reason of filing of a proof of claim prior to the deadline described herein. Furthermore, the establishment of the October , 2011 deadline described herein shall not be deemed to authorize or permit the filing of any claim or amendment of any claim that would not otherwise be allowable. - Failure to file timely a proof of claim on or before the deadline may result in disallowance of the claim or subordination under the terms of a plan of reorganization without further notice or hearing. 11 U.S.C. 502(b)(9). You may wish to consult an attorney to protect your rights. . F>ane \7 - Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 18 of 21 PLEASE TAKE FURTHER_NOTICE that if your claim is based upon any writing, you must attach copies of any and all such writings to the proof of claim or provide an adequate explanation of your inability to do so. Failure to - do so will render your claim incomplete and invalid and subject to objection and disallowance. All claims should be filed with the Bankruptcy Court located at 411 West Fourth Street, Santa Ana, CA 92701. A PROOF OF CLAIM FORM IS ATTACHED FOR YOUR USE. DATED: September_, 2011 RINGSTAD & SANDERS LLP By: __________ ~ - - Todd C. Ringstad Nanette D. Sanders Counsel for Committee of Creditors Holding Unsecured Claims -2- Exhibit __ L" ... Page 1 g Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 19 of 21 NOTE: When using this form to indicate service of a proposed DO NOT list any person or entity in Category I. Proposed orders do not generate an NEF because only orders that have been entered are placed on the CM/ECF docket. PROOF OF SERVICE OF DOCUMENT I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is: 2030 Main Street, Suite 1200,Irvine, CA 92614. A true and correct copy of the foregoing described as NOTICE OF MOTION AND MOTION BY OFFICIAL COMMITTEE OF CREDITORS HOLDING UNSECURED CLAIMS FOR AN ORDER SETTING DEADLINE FOR CERTAIN PARTIES TO FILE (1) ADMINISTRATIVE CLAIMS OR REQUESTS FOR ALLOWANCE OF ADMINISTRATIVE CLAIMS, AND, (2) CONTRACT REJECTIONS CLAIMS; MEMORANDUM oF_POINTS AND AUTHORITIES; DECLARATION OF NANETTE D. SANDERS will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner indicated below: I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING f"NEF")- Pursuant to controlling General Order(s) and Local Bankruptcy Rule(s) ("LBR''), the foregoing document will be served by the court via NEF and hyperlink to the document. On September 20. 2011. I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following person(s) are on the Electronic Mail Notice List to receive NEF transmission at the email address(es) indicated below: Allison R Axenrod allison@claimsrecoveryllc.com James C Bastian jbastian@shbllp.com Jeffrey W Broker jbroker@brokerlaw.biz Frank Cadigan frank.cadigan@usdoj.gov Mark R Campbell mcampbell@markcampbelllaw.com Cathrine M Castaldi ccastaldi@rusmiliband.com Patricia A Cirucci patricia.cirucci@sce.com Jeff Cohen JC@SouthpawAsset.com Don Fisher dfisher@ptwww.com Bernard R Given bgiven@frandzel.com, efiling@frandzel.com;shom@frandzel.com;bgiven@frandzel.com Robert P Goe kmurphy@goeforlaw.com, rgoe@goeforlaw.com;mforsythe@goeforlaw.com Marshall F Goldberg mgoldberg@glassgoldberg.com Carl Grumer cgrumer@manatt.com Kavita Gupta kgupta@winthropcouchot.com EdwardS Kim ekim@hemar-rousso.com Steven B Lever sblever@leverlaw.com Craig A Loren aloren@debtacquisitiongroup.com, bschwab@debtacquisitiongroup.com;jsarachek@debtacquisitiongroup.com Lawrence C-Meyerson lcmlaw@earthlink.net Michael S Mitchell mike@demarcomitchell.com John D Monte johnmontelaw@gmail.com V ahak Papasian vahak@vaplaw.com, test@ecf.inforuptcy.com;vahak@ecf.inforuptcy .com Sue Y Park sparkcallahan@gmail.com Thomas J Polis tom@polis-law.com Richard J Reynolds glatimer@trlawyers.com Christopher 0 Rivas crivas@reedsmith.com This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. August2010 F 9013-3.1.PROOF.SERVICE Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 20 of 21 Meghan C Sherrill meghan.sherrill@troutmansanders.com Ramesh Singh claims@recoverycorp.com Edward J Tredinnick etredinnick@greeneradovsky .com United States Trustee (SA) ustpregion16.sa.ecf@usdoj.gov Michael A Wallin mwallin@sheppardmullin.com Andrew F Whatnall awhatnall@daca4.com Marc J Winthrop mwinthrop@winthropcouchot.com, pj@winthropcouchot.com Arnold H Wuhrman Wuhrman@serenitylls.com Pamela Jan Zylstra zylstralaw@gmail.com D Service information continued on attached page II. SERVED BY U.S. MAIL OR OVERNI<;?HT MAIL(indicate method for each person or entity served): On September 20. 2011 I served the following person(s) and/or entity(ies) at the last known address(es) in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed. 1Z1 Service information continued on attached page Ill. SERVED BY PERSONAL DELIVERY. FACSIMILE TRANSMISSION OR EMAIL (indicate method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on September 20. 2011.1 served the following person(s) and/or entity(ies) by personal delivery, or (for those who consented in writing to such service method}, by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on the judge will be completed no later than 24 hours after the document is filed. Via Personal Delivery: Honorable Robert Kwan, U.S. Bankruptcy Court, Ronald Reagan Federal Building, 411 W. Fourth St., Bin Outside Room 5097, Santa Ana, CA 92701-4593 Via Email: Martin W. Taylor Marty.Taylor@troutmansanders.com 1Z1 Service information continued on attached page September 20, 2011 Arlene Tavares Date Type Name Signature This form is mandatory. It has been apprdved for lJSe by the United States Bankruptcy Court for the Central District of California. August 2010 F 9013-3.1.PRQQF .SERVICE Case 8:10-bk-24771-RK Doc 670 Filed 09/20/11 Entered 09/20/11 17:06:40 Desc Main Document Page 21 of 21 Dr. Robert H. Schuller Mrs. Arvella Schuller 4003 E. La Veta Ave. Orange, CA 92869 Robert A. Schuller 16 N Stonington Rd. Laguna Beach, CA 92651 Jeanne Dunn Paul Dunn 370 Aulii Drive Makawao, HI 96768 Service Via U.S. Mail Timolthy Milner Carol Milner 7723 Lolita St. Orange, CA 92869 Robert Harold, Inc. 12141 Lewis St. Garden Grove, CA 92840 James Penner Oretchen Penner 2453 N. Riverside Dr. Santa Ana, CA 92706 Sheila Coleman James Coleman 205 E Palmyra Ave. Orange, CA 92866 Fred Southard ?Narbonne Newport Beach, CA 92660 Fred Southard _ c/o Law Office of GeorgeS. Burns, Victoria E. Moss 4100 MacArthur Blvd., Suite 305 Newport Beach, CA 92660
United States of America, Charles M. Carberry v. International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Afl-Cio the Commission of La Cosa Nostra Anthony Salerno, Also Known as Fat Tony Matthew Ianniello, Also Known as Matty the Horse Nunzio Provenzano, Also Known as Nunzi Pro Anthony Corallo, Also Known as Tony Ducks Salvatore Santoro, Also Known as Tom Mix Christopher Furnari, Sr., Also Known as Christie Tick Frank Manzo Carmine Persico, Also Known as Junior, Also Known as the Snake Gennaro Langella, Also Known as Gerry Lang Philip Rastelli, Also Known as Rusty Nicholas Marangello, Also Known as Nicky Glasses Joseph Massino, Also Known as Joey Messina Anthony Ficarotta, Also Known as Figgy Carmen Parise, Eugene Boffa, Sr. Francis Sheeran Milton Rockman, Also Known as Maishe John Tronolone, Also Known as Peanuts Joseph John Aiuppa, Also Known as Joey O'brien, Also Known as Joe Doves, Also Known as Joey Aiuppa John Philip Cerone, Also Known as Jackie th