sky king by bobbywc

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									                                                                                                                                            I                           FILED
                                                                Case 10-25657                  Doc 56        Page 1 of 126                              March                23, 2010
                                                                                                                                                 CLERK,         U.S. BANKRUPTCY  COURT
 B6 Summary     (Official Form 6 - Summary)        (12/07)                                                                                      EASTERN         DrSTRrCT OF CALrFORNrA

                                                                                                                                                1/1111I1111I111111111111111111111111111111111111111I11111111
                                                                                                                                                                     0002506504
                                                                    . United States Bankruptcy Court
                                                                             Eastern District of California
  In re           Sky King, Inc.                                                                                          Case No. _--'-10::....-=2..:;..56""5:...;;7                                    _
                                                                                                 Debtor
                                                                                                                          Chapter                                       --'1...:..1                     _




                                                                          SUMMARY OF SCHEDULES
     Indicate as to each schedule whether that schedule is attached and state the number of pages in each. Report the totals from Schedules A,
     B, D, E, F, I, and J in the boxes p!ovided. Add the amounts from Schedules A and B to determine the total amount of the debtor's assets.
     Add the amounts of all claims from Schedules D, E, and F to determine the total amount of the debtor's liabilities. Individual debtors must
     also complete the "Statistical Summary of Certain Liabilities and Related Data" if they file a case under chapter 7, 11, or 13.




           NAME OF SCHEDULE                                   ATTACHED                NO. OF              ASSETS              LIABILITIES                                   OTHER
                                                               (yESINO)               SHEETS

A - Real Property                                                    Yes                                   1,100,000.00


B -Personal Property                                                 Yes                 4



C - Property Claimed as Exempt                                       No                  o

D - Creditors Holding Secured Claims                                 Yes                 2

E - Creditors Holding Unsecured                                      Yes                 16                                      12,581,901.99
    Priority Claims (fatal of Claims on ScheduleE)

F - Creditors Holding Unsecured                                      Yes                 50                                         7,572,859.27
    Nonpriority Claims

G - Executory Contracts and                                          Yes                 1
   Unexpired Leases

H - Codebtors                                                       Yes


I - Current Income of Individual                                     No                  o
    Debtor(s)

J - Current Expenditures of Individual                               No                  o
    Debtor(s)

   Total Number of Sheets of ALL Schedules                                               75


                                                                                Total Assets


                                                                                                    Total Liabilities            26,695,625.47




Software Copyright (c)   1996-2010 - Best Case Solutions - Evanston. IL - www.bestcase.com                                                                             Best Case Bankruptcy
                                                                                                   FILED
                                                                                            February   17, 2011
                                                                                          CLERK,         U.S. BANKRUPTCY COURT
                                                                                         EASTERN         DISTRICT OF CALIFORNIA

                                                                                         11111111111111111111111111111111111111111I1111I1111111111111
                                                                                                              0003289002

 1   BENJAMIN B. WAGNER
     United States Attorney
 2   ANA MARIA MARTEL
     Assistant United States Attorney
 3
     THOMAS M. ROHALL, Wash. St. Bar No. 12201
 4   LAUREL M. COSTEN, Wash. St. Bar No. 22165
     MATTHEW D. CARLSON, California State Bar No. 261092
 5   Special Assistant United States Attorneys
     4330 Watt Ave., Suite 470
 6   Stop No. SA 2801
     Sacramento.iCzv 95821-7012
 7   Tel No. (916) 974-5700
     Fax No. (916) 974-5732
 8
     Attorneys for United States of America
 9

10
                                  UNITED STATES BANKRUPTCY COURT
11

                                    EASTERN DISTRICT OF CALIFORNIA
12
                                           SACRAMENTO DIVISION
13

14

     In re:                                             ) Case No. 1O-25657-C-ll
15                                                      ) D.C. No. SCS-002 & MRE-018
     SKY KING, INC.,                                    )
16                                                      )   UNITED STATES' RESPONSE TO SECURED
                    Debtor.                             )   CREDITOR'S MOTION FOR COMPELLING
17                                                      )   TURNOVER AND DEBTOR'S MOTION FOR
                                                        )   SURRENDER OF AIRCRAFT
18                                                      )
                                                        )   Hearing Date: March 9,2011
19                                                      )   Hearing Time: 10:00 a.m.
                                                        )   Location:     Courtroom 35, Dept C
20                                                      )                 Sacramento Courthouse
21
     -------------------------------)

22            THE UNITED STATES OF AMERICA on behalf of its agency, the Internal Revenue Service
23   [hereinafter, "Service"], a creditor herein, responds to the Debtor's Motion for Surrender of Aircraft and
24   Secured Creditor's Motion for Compelling Turnover, as follows:
25       1) The debtor owes a total of $4,294,228.42 (claim # 115) in pre-petition taxes, interest, and
26   penalties. The Service filed its initial proof of claim on March 19,2010 (claim no. 2). The initial claim
27   has been amended by claim numbers 31, 114 and 115.
28



      United States Response                                                                                                     -1-
 1       2) The Service's initial claim filed on March 19,2010 contained a secured claim in the amount of
 2   $2,569,434.23,    which claim covered excise taxes and employment      taxes for tax liens filed from August,
 3   2003 through February, 2009.
 4       3) The tax liabilities for tax liens filed in 2003 and 2004 have subsequently    been paid in full, thus
 5   the tax liens securing those liabilities should be released.

 6       4) The last amended claim (#115) filed by the Service has a secured claim in the amount of

 7   $867,854.00.     The secured claim on claim number 115 consists of tax liens filed in 2008 and 2009.
 8       5) In calculating the Service's     secured claim in claim number 115, the Service did not take into
 9   account the assets secured by the San Jose Sharks, LLC, as their security interest was prior to the filing
10   of the Service's remaining tax liens.

11       6) As such, the Service does not contest the priority of the San Jose Sharks, LLC in the assets

12   described as "Aircraft Collateral" in its Motion for Order Enforcing Right to Take Possession of Aircraft

13   and Aircraft Engines Pursuant to 11 U.S.c. § 1110 and Compelling Turnover.
14       7) Further, the Service does not oppose either the Debtor's Motion or the Secured Creditor's
15   Motion.
16                                                        BENJAMIN B. WAGNER
                                                          United States Attorney
17

18                                                         By: ISI   THOMAS M. ROHALL
     Dated: 02/17111
                                                             THOMAS M. ROHALL
19
                                                             Special Assistant U.S. Attorney
20

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      United States Response                                                                                    -2-
                                                                                                                                        FILED
                                                                                                                    January                07, 2011
                                                                                                                CLERK,           U.S. BANKRUPTCY  COURT
                                                                                                               EASTERN           DISTRICT OF CALIFORNIA

                                                                                                               111111111111111111111111111111111111111111111111111111111111
                                                                                                                                      0003195832
                                  JayM. Ross, Esq. (State BarNo. 151750)
                                  iross@hopkinscarleycom
                              2   MichaelineH. Correa, Esq. (State Bar No. 215215)
                                  mcorrea@hopkinscar1ey.com
                              3   HOPKINS & CARLEY
                                  A Law Corporation
                              4   The Letitia Building
                                  70 S First Street
                              5   San Jose, CA 95113-2406

                              6   mailing address:
                                  P.O. Box 1469
                              7   San Jose, CA 95109-1469
                                  Telephone:    (408) 286-9800
                              8   Facsimile:    (408) 998-4790

                              9   Attorneys for Creditor
                                  SAN JOSE SHARKS
                          10

                          11                                        UNITED STATES BANKRUPTCY COURT
                          12                                            EASTERN DISTRICT OF CALIFORNIA
                          13

                          14

                          15      In re:                                               CASE NO. 10-25657
                          16      SKY KING, INe.
                          17                              Debtor-in- Possession       SECURED CREDITOR'S NOTICE OF
                                                                                      DEMAND FOR TURNOVER OF
                          18                                                          AIRCRAFT AND AIRCRAFT ENGINES
                                                                                      PURSUANT TO 11 D.S.C. § 1110
                          19

                          20

                          21      TO DEBTOR AND DEBTOR-IN-POSSESSION SKY KING, INC., THE OFFICE OF THE
                                  UNITED STATES TRUSTEE, AND THOSE PARTIES REQUESTING SPECIAL
                          22      NOTICE IN THIS CASE:
                          23               NOTICE IS HEREBY GIVEN that San Jose Sharks, LLC, secured creditor in the above-                                                   I.



                          24      referenced case ("Secured Creditor"), hereby demands turnover and asserts its right to take

                          25      possession of its Aircraft Collateral (as defined below) that debtor and debtor-in-possession Sky

                          26      King, Inc. (the "Debtor") granted as security for a $2 million loan from Secured Creditor.

                          27

                          28
HOPKINS        & CARI.EY
                                  728\806710.1
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         S.t.N Jt>~":
                                  NOTICE RE RIGHTS UNDER
                                  11 U.S.C. § 1110; CASE NO. 10-25657
                                        Secured Creditor's demand is authorized under section 1110 of Title 11 of the United States Code

                                   2    (the "Bankruptcy Code") and is based upon the following facts:

                                   3             On December 1, 2006, the Debtor executed a Promissory Note in the face amount of $2

                                   4    million in favor of Secured Creditor (the "Note"). To secure the Debtor's payment obligations

                                   5    under the Note, the parties entered into that certain Aircraft Security Agreement dated December

                                   6    1, 2006 (the "Security Agreement").         1   Under the Security Agreement, Debtor granted Secured

                                   7    Creditor a security interest in, among other things, the following collateral: (1) One Boeing 737-

                                   8    291 airframe bearing manufacturer's serial number 21058 and US registration mark N977UA (the

                                   9    "Airframe"); and (2) Two Pratt & Whitney JT8D-9A aircraft engines bearing manufacturers

                                   10   serial numbers P655997B and P666672B (collectively the "Engines," and together with the

                                   11   "Airframe," the "Aircraft Collateral"). Secured Creditor duly recorded its security interests. The

                                   12   Note matured on December 1, 2008.

                                   13             On March 9,2010 (the "Petition Date"), the Debtor commenced this voluntary Chapter 11

                                   14   case. As a result of Debtor's failure to pay the Note, Secured Creditor is listed on the Debtor's

                                   15   Schedules of Assets and Liabilities as a holding an undisputed secured claim in the amount of

                                   16   $1.7 million. The Debtor's most recent Monthly Operating Report filed December 17,2010

                                   17   reflects that the Airframe's market value is $1.2 million? Accordingly, the Debtor acknowledges

                                   18   that Secured Creditor is undersecured.

                                   19

                               20

                               21

                               22
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                               24                / II /

                               25                /1/1

                               26       I This is only a summary of Secured Creditor's collateral. To the extent any information in this Notice conflicts with

                                        the terms of the Security Agreement, the Security Agreement shall govern.
                               27       2 Secured Creditor does not concede that the market value is $1.2 million but accepts such valuation for the purposes

                                        of this demand.
                               28
l-iorKINS         & CARLEY
  '\TT.lIo!NtP,        AT    LAW
                                        728\806710.1                                            -2 -
           SAN    J •••••.              NOTICE RE RIGHTS UNDER
                                        II u.s.c. § 1110; CASE NO. 10-25657
                                     Over 60 days have passed since the Petition Date, and the Debtor did not make an election

                        2   under section 1110 of the Bankruptcy        Code to perform under the Security Agreement and cure
                                                                                                                                    t •
                        3   pre-petition defaults.      As a result, Secured Creditor now exercises its rights under section 1110   i
                                                                                                                                    t •



                        4   and demands that the Debtor immediately         relinquish possession of, and turnover, the Aircraft

                        5   Collateral to Secured Creditor.

                        6   Dated: January 7,2011                                   HOPKINS & CARLEY
                                                                                    A Law Corporation
                        7

                        8
                                                                                    By:      /s/ Jay M. Ross
                        9                                                                 JayM. Ross
                                                                                          Attorneys for Creditor
                     10                                                                   SAN JOSE SHARKS
                     11

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            & CARLEY
HOPKINS
 ATTnIOH.Y!o   AT LAW
                            728\806710. I                                       -3-
      SAN   jP!o1-
                            NOTICE RE RIGHTS UNDER
                            II u.s.c. § 1110; CASE NO. 10·25657

								
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