Case MBK Doc 540 Filed 09/15/14 Entered 09/17/14 13:25:19 Desc Main Document Page 1 of 7
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1 Document Page 1 of 7 9/15/2014 UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY Caption in Compliance with D.N.J. LBR (c) CURTIS, MALLET-PREVOST, COLT & MOSLE LLP 101 Park Avenue New York, NY Telephone: (212) Facsimile: (212) Steven J. Reisman Cindi M. Giglio Bryan M. Kotliar Counsel to the Debtors and Debtors-in-Possession COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, P.A. Court Plaza North 25 Main Street Hackensack, NJ Telephone: (201) Facsimile: (201) Michael D. Sirota Ilana Volkov Co-Counsel to the Debtors and Debtors-in-Possession In re: ASHLEY STEWART HOLDINGS, INC., et al., 1 Debtors-in-Possession. Case No (MBK) Judge: Honorable Michael B. Kaplan Chapter 11 (Jointly Administered) STIPULATION AND CONSENT ORDER LIFTING THE AUTOMATIC STAY WITH RESPECT TO WORKERS COMPENSATION CLAIMS OF DONNA JACKSON AND GRANTING RELATED RELIEF
2 Page: 1 Document Page 2 of 7 hereby ORDERED. The relief set forth on the following pages, numbered two (2) through six (6) is DATED: 9/15/2014
3 Page: 2 Document Page 3 of 7 This Stipulation (this Stipulation ) is entered into between Donna Jackson (the Claimant ), by and through her counsel, Edelman & Thompson, LLC, Zurich American Insurance Company (the Provider ), and the above-captioned debtors and debtors-in-possession (collectively, Ashley Stewart or the Debtors and, together with Claimant, the Parties ), by and through their counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP. RECITALS WHEREAS, on March 10, 2014 (the Petition Date ), each of the Debtors filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code (as amended, the Bankruptcy Code ) in the United States Bankruptcy Court for the District of New Jersey (the Bankruptcy Court ) (collectively, the Chapter 11 Cases ); and WHEREAS, the Debtors continue to operate their businesses and manage their properties as debtors-in-possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code; and WHEREAS, prior to the Petition Date, Claimant filed a claim with the Missouri Department of Labor and Industrial Relations Division of Workers Compensation for injuries allegedly sustained while in the course and scope of her duties as an employee of Ashley Stewart (the Workers Compensation Claim ); and WHEREAS, the Debtors are insured parties under an insurance policy with the Provider, which provides coverage with respect to the Workers Compensation Claim (the Policy ); and -2-
4 Page: 3 Document Page 4 of 7 WHEREAS, Claimant seeks relief from the automatic stay to proceed with respect to the Workers Compensation Claim solely to the extent that insurance coverage exists with respect thereto; and WHEREAS, the Parties seek to modify the automatic stay imposed by section 362 of the Bankruptcy Code on the terms set forth herein. NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by and among the undersigned counsel for the Parties, in consideration of the foregoing recitals and the promises set forth herein, which are subject only to Bankruptcy Court approval, as follows: 1. The foregoing recitals are hereby fully incorporated into and made an express part of this Stipulation. 2. The automatic stay of section 362 of the Bankruptcy Code is hereby modified for the sole and limited purpose of permitting the Claimant to proceed with respect to the Workers Compensation Claim to establish liability and damages for the sole purpose of recovering against proceeds of the Policy, if any. 3. Any recovery by the Claimant based on any judgment, settlement, mediation, arbitration, or otherwise on account of the Workers Compensation Claim shall be solely from the proceeds of the Policy and not against the Debtors or their estates. 4. Claimant waives all claims against the Debtors and each of their respective estates and their officers and directors in connection with the Workers Compensation Claim, except as set forth herein for the purposes of recovery against the Policy. -3-
5 Page: 4 Document Page 5 of 7 5. The Provider agrees that there will be no adverse impact on the Debtors insurance coverage under the Policy arising from the Workers Compensation Claim or any future claim against the Debtors. 6. This Stipulation and Consent Order shall be of no force or effect unless and until it is approved by the Bankruptcy Court. When so approved, this Stipulation and Consent Order shall be binding upon the Debtors and Claimant, as well as each of their respective successors and assigns, and any trustee appointed in these Chapter 11 Cases. 7. This Stipulation and Consent Order may be executed by facsimile in counterparts and it shall not be necessary that the signature of, or on behalf of, each party appear on one or more counterparts, all counterparts of which collectively shall constitute a single document. Any party executing by facsimile will provide an original signature page to the other party within a reasonable amount of time. [Remainder of page left blank intentionally] -4-
6 Page: 5 Document Page 6 of 7 8. The Bankruptcy Court shall retain jurisdiction with respect to all matters arising from or related to the implementation of this Stipulation and Consent Order. The undersigned consent to the terms, conditions and entry of this Stipulation and Consent Order: September 12, 2014 CURTIS, MALLET-PREVOST, COLT & MOSLE LLP By: /s/ Steven J. Reisman Steven J. Reisman, Esq. Cindi M. Giglio, Esq. (admitted pro hac vice) Bryan M. Kotliar, Esq. (admitted pro hac vice) 101 Park Avenue New York, NY Telephone: (212) Facsimile: (212) Counsel for the Debtors and Debtors-in-Possession EDELMAN & THOMPSON, LLC By: /s/ Steffanie Stracke Steffanie Stracke, Esq Broadway, Ste Kansas City, MO Telephone: (816) Counsel for Claimant ZURICH AMERICAN INSURANCE COMPANY By: /s/ Terence M. McCafferty Terence M. McCafferty 7045 College Blvd. Overland Park, KS Telephone: (913) Vice President of Zurich American Insurance Company ZURICH AMERICAN INSURANCE COMPANY By: /s/ Julie A. N. Sample Julie A. N. Sample, Esq College Blvd., Ste. 800 Overland Park, KS Telephone: (913) Facsimile: (913) Counsel for Provider -5-
7 Page: 6 Document Page 7 of 7 CERTIFICATION OF NO OBJECTION OF OFFICIAL COMMITTEE OF UNSECURED CREDITORS The undersigned hereby certifies that the Official Committee of Unsecured Creditors appointed in the Debtors Chapter 11 Cases has reviewed this Stipulation and has no objections to the relief set forth herein. PACHULSKI STANG ZIEHL & JONES LLP By: /s/ Bradford J. Sandler Robert J. Feinstein, Esq. (admitted pro hac vice) Bradford J. Sandler, Esq. 780 Third Avenue New York, NY Telephone: (212) Facsimile: (212) Counsel for the Official Committee of Unsecured Creditors -6-
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