Docstoc

TC Global (Tully's Coffee) Motion to Pay Employee Benefits

Document Sample
TC Global (Tully's Coffee)  Motion to Pay Employee Benefits Powered By Docstoc
					1                                                                  HONORABLE KAREN A. OVERSTREET

2
                                               HEARING DATE: WEDNESDAY, OCTOBER 10, 2012
3                                              BEFORE THE HONORABLE TIMOTHY W. DORE
                                               HEARING TIME: 3:30 P.M.
4                                              LOCATION: SEATTLE, COURTROOM 8106
                                               SUBJECT TO ENTRY OF ORDER SHORTENING TIME
5                                              FOR HEARING

6

7

8                                     UNITED STATES BANKRUPTCY COURT
                                      WESTERN DISTRICT OF WASHINGTON
9
         In re
10                                                                No. 12-20253
         TC GLOBAL, INC.,
11                                                                EMERGENCY MOTION FOR ORDER
                                       Debtor.                    AUTHORIZING DEBTOR TO PAY
12                                                                PREPETITION WAGES, BENEFITS AND
                                                                  ASSOCIATED COSTS
13

14                TC Global, Inc. (“Debtor”) dba Tully’s Coffee, debtor-in-possession herein, moves the Court

15       for an order authorizing it to pay prepetition wages, commissions, taxes, benefits and expenses as

16       described herein. This motion is based upon the files and records herein and upon the Declaration of

17       Scott Pearson in Support of First Day Motions (“Pearson Declaration”).

18                                    I.      BACKGROUND INFORMATION

19                The Debtor commenced this Chapter 11 case on October 10, 2012 (“Petition Date”). The

20       Debtor is operating its business and managing its affairs as a debtor-in-possession under 11 U.S.C.

21       §§ 1107 and 1108. A complete summary of the Debtor’s operations and the events leading to this

22       Chapter 11 are set forth in the Pearson Declaration filed contemporaneously herewith.

23

24                                                                            B USH S TROUT & K ORNFELD               LLP
         EMERGENCY MOTION FOR ORDER AUTHORIZING                                              LAW OFFICES

25       DEBTOR TO PAY PREPETITION WAGES, BENEFITS AND                                   5000 Two Union Square
                                                                                              601 Union Street
         ASSOCIATED COSTS – Page 1                                                   Seattle, Washington 98101-2373
                                                                                        Telephone (206) 292-2110
26   1977 20121 xi051r06ds.002                                                          Facsimile (206) 292-2104
       Case 12-20253-KAO          Doc 2    Filed 10/10/12    Ent. 10/10/12 13:02:31         Pg. 1 of 4
1                                     II.    AMOUNTS PROPOSED TO BE PAID

2        A.       Prepetition Wages and Commissions Owed

3                 1.       The Debtor currently employs 610 individuals. Pearson Decl. The Debtor's most

4        recent payroll periods runs from September 24, 2012 through October 7, 2012 and is scheduled to be

5        paid on October 15, 2012. In addition, certain payroll taxes associated with the prepetition portion of

6        the payroll period have not yet been paid. Pearson Decl.

7                 2.       The Debtor estimates that amounts owed on October 14, 2012 in connection with the

8        payroll for the period ending October 7, 2012 and related taxes are approximately $482,390.63.

9        Pearson Decl.

10                3.       The Debtor maintains employer-sponsored medical, dental, vision, life, long-term

11       disability, and short-term disability plans for its employees, with annual and monthly costs as

12       indicated:

13                         Type                         Company             Monthly Cost                Annual Cost
                                                                           (Employer portion only)   (Employer portion only)
14       Medical/Vision (non-Union)              United Healthcare                  25,473.59                 305,683.08
         Dental (non-Union)                      Washington Dental Svc               2,220.00                  26,640.00
15       Life/ADD (non-Union)                    Lincoln Financial                     609.41                   7,312.92
         Long-term Disability (non-Union)        Lincoln Financial                   1,148.92                  13,787.04
16       Short-term Disability (non-Union)       Lincoln Financial                   2,090.00                  25,080.00
         Totals:                                                                    31,541.92                 378,503.04
17

18                4.       The Debtor’s business operation also includes providing its employees other benefits
19       such as vacation pay and a reimbursement of business expenses including credit card charges for
20       company-authorized expenses. Id. The Debtor desires to continue to provide, in the exercise of its
21       discretion and business judgment, employee benefits including the referenced insurance coverage and
22       the payment of accrued and unpaid benefits on an uninterrupted basis. Id.
23

24                                                                                B USH S TROUT & K ORNFELD                LLP
         EMERGENCY MOTION FOR ORDER AUTHORIZING                                                   LAW OFFICES

25       DEBTOR TO PAY PREPETITION WAGES, BENEFITS AND                                        5000 Two Union Square
                                                                                                   601 Union Street
         ASSOCIATED COSTS – Page 2                                                        Seattle, Washington 98101-2373
                                                                                             Telephone (206) 292-2110
26   1977 20121 xi051r06ds.002                                                               Facsimile (206) 292-2104
       Case 12-20253-KAO            Doc 2    Filed 10/10/12     Ent. 10/10/12 13:02:31           Pg. 2 of 4
1                 5.       A loss of the ability to pay its ordinary payroll and benefits would have an adverse

2        effect on the Debtor's ability to maintain its ongoing operations and successfully maximize its assets

3        for the benefit of creditors. Id.

4                 6.       Allowing the Debtor to honor prepetition claims for wages and employee benefits,

5        including honoring payroll, will assist the Debtor in maintaining normal day-to-day operations. Id.

6        By preventing employees from suffering loss of income and benefits, employees are more likely to

7        remain with the Debtor through its restructuring, to the benefit of the estate and its creditors. Id. The

8        Debtor believes no employee is owed in excess of $11,725 in prepetition earnings as allowed by

9        11 U.S.C. § 507(a)(4).

10                                                  III.    CONCLUSION

11                WHEREFORE, the Debtor respectfully requests entry of an order authorizing it to pay the

12       following prepetition wages, commissions and expenses:

13                (1)      Wages, salaries, sick pay, holiday pay, related benefits, and all federal, state and local

14       payroll-related taxes, deductions and withholdings pertaining to such payments accrued by employees

15       of the Debtor prepetition;

16                (2)      Vacation benefits related to the prepetition services which have accrued in accordance

17       with existing policies and practices of the Debtor and which become payable subsequent to the

18       Petition Date on account of services rendered to the Debtor, whether prior to or after the Petition Date,

19       provided that such benefits shall not exceed a period of four weeks for any one employee;

20                (3)      Out-of-pocket business expenses, including credit card charges for company-

21       authorized expenses, incurred by employees of the Debtor prior to the Petition Date that would

22       otherwise be reimbursable;

23

24                                                                                 B USH S TROUT & K ORNFELD               LLP
         EMERGENCY MOTION FOR ORDER AUTHORIZING                                                   LAW OFFICES

25       DEBTOR TO PAY PREPETITION WAGES, BENEFITS AND                                        5000 Two Union Square
                                                                                                   601 Union Street
         ASSOCIATED COSTS – Page 3                                                        Seattle, Washington 98101-2373
                                                                                             Telephone (206) 292-2110
26   1977 20121 xi051r06ds.002                                                               Facsimile (206) 292-2104
       Case 12-20253-KAO             Doc 2    Filed 10/10/12      Ent. 10/10/12 13:02:31         Pg. 3 of 4
1                 (4)      Worker's compensation and related benefits and claims of employees of the Debtor

2        which arose or accrued prior to the Petition Date; and

3                 (5)      Payments to maintain the insurance coverage and benefits set forth above.

4                 DATED this 10th day of October, 2012.

5                                                              BUSH STROUT & KORNFELD LLP

6

7                                                              By     /s/ Christine M. Tobin-Presser
                                                                Christine M. Tobin-Presser, WSBA #27628
8                                                              Attorneys for TC Global, Inc.

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24                                                                              B USH S TROUT & K ORNFELD              LLP
         EMERGENCY MOTION FOR ORDER AUTHORIZING                                               LAW OFFICES

25       DEBTOR TO PAY PREPETITION WAGES, BENEFITS AND                                    5000 Two Union Square
                                                                                               601 Union Street
         ASSOCIATED COSTS – Page 4                                                    Seattle, Washington 98101-2373
                                                                                         Telephone (206) 292-2110
26   1977 20121 xi051r06ds.002                                                           Facsimile (206) 292-2104
       Case 12-20253-KAO            Doc 2    Filed 10/10/12     Ent. 10/10/12 13:02:31       Pg. 4 of 4
1

2

3

4

5

6

7

8

9

10

11                                        UNITED STATES BANKRUPTCY COURT
                                          WESTERN DISTRICT OF WASHINGTON
12
         In re
13                                                                    No. 12-20253
         TC GLOBAL, INC.,
14                                                                    [PROPOSED] ORDER AUTHORIZING
                                           Debtor.                    PAYMENT OF PREPETITION WAGES,
15                                                                    BENEFITS AND ASSOCIATED COSTS

16               THIS MATTER came before the Court upon the Emergency Motion ("Motion") for Order

17       Authorizing Payment of Prepetition Wages, Benefits and Associated Costs filed by TC Global, Inc.

18       (“Debtor”) dba as Tully’s Coffee, debtor-in-possession herein. The Court has reviewed the files and

19       records herein and finds that cause exists for the requested relief. Now, therefore, it is hereby

20               ORDERED:

21               1.          That the Motion is granted;

22               2.          That the Debtor is authorized to pay the following prepetition wages, commissions and

23       expenses:

24                                                                                B USH S TROUT & K ORNFELD              LLP
         [PROPOSED] ORDER AUTHORIZING PAYMENT OF                                                LAW OFFICES

25       PREPETITION WAGES, BENEFITS AND ASSOCIATED                                         5000 Two Union Square
                                                                                                 601 Union Street
         COSTS – Page 1                                                                 Seattle, Washington 98101-2373
                                                                                           Telephone (206) 292-2110
26   1977 20121 xi11bq06mn                                                                 Facsimile (206) 292-2104
      Case 12-20253-KAO              Doc 2-1    Filed 10/10/12    Ent. 10/10/12 13:02:31        Pg. 1 of 2
1                            a.   Wages, salaries, sick pay, holiday pay, related benefits, and all federal, state and

2        local payroll-related taxes, deductions and withholdings pertaining to such payments accrued by

3        employees of the Debtor prepetition;

4                            b.   Vacation benefits related to the prepetition services which have accrued in

5        accordance with existing policies and practices of the Debtor and which become payable subsequent

6        to the Petition Date on account of services rendered to the Debtor, whether prior to or after the

7        Petition Date, provided that such benefits shall not exceed a period of four weeks for any one

8        employee;

9                            c.   Out-of-pocket business expenses, including credit card charges for company-

10       authorized expenses, incurred by employees of the Debtor prior to the Petition Date that would

11       otherwise be reimbursable;

12                           d.   Worker's compensation and related benefits and claims of employees of the

13       Debtor which arose or accrued prior to the Petition Date; and

14                           e.   Payments to maintain the insurance coverage and benefits set forth above.

15
                                                     / / /End of Order/ / /
16       Presented by:

17       BUSH STROUT & KORNFELD LLP

18

19       By_________________________________
           Christine M. Tobin-Presser, WSBA #27628
20       Attorneys for TC Global, Inc.

21

22

23

24                                                                                B USH S TROUT & K ORNFELD               LLP
         [PROPOSED] ORDER AUTHORIZING PAYMENT OF                                                 LAW OFFICES

25       PREPETITION WAGES, BENEFITS AND ASSOCIATED                                          5000 Two Union Square
                                                                                                  601 Union Street
         COSTS – Page 2                                                                  Seattle, Washington 98101-2373
                                                                                            Telephone (206) 292-2110
26   1977 20121 xi11bq06mn                                                                  Facsimile (206) 292-2104
      Case 12-20253-KAO            Doc 2-1     Filed 10/10/12     Ent. 10/10/12 13:02:31         Pg. 2 of 2

				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:62
posted:10/11/2012
language:
pages:6