Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 1 of 7

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1 Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 1 of 7 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION IN RE: ) ) ITT EDUCATIONAL SERVICES, INC., et al. 1 ) Case No JMC-7A ) Debtors. ) Jointly Administered TRUSTEE S MOTION TO EXTEND THE TIME TO ASSUME OR REJECT EXECUTORY CONTRACTS AND UNEXPIRED LEASES OF RESIDENTIAL REAL PROPERTY OR PERSONAL PROPERTY Deborah J. Caruso, the chapter 7 trustee in this case (the Trustee ), by counsel, pursuant to 11 U.S.C. 365(d), requests the Court enter an order extending the deadline to assume or reject executory contracts or unexpired leases of residential real property or of personal property on the following grounds: I. JURISDICTION 1. This Court has jurisdiction over this motion pursuant to 28 U.S.C. 157 and This matter is a core proceeding within the meaning of 28 U.S.C. 157(b)(2). 2. Venue is proper in this district pursuant to 28 U.S.C and The statutory predicates for relief is section 365(d) of Title 11 of the United States Code (the Bankruptcy Code ). II. BACKGROUND 4. On September 16, 2016 (the Petition Date ), ITT Educational Services, Inc. ( ITT ), ESI Service Corp. ( ESI ) and Daniel Webster College, Inc. ( Webster College, and together with ITT and ESI, the Affiliated Debtors ) filed voluntary petitions for relief under chapter 7 of the Bankruptcy Code. Trustee was appointed as chapter 7 trustee in each of the 1 The debtors in these cases, along with the last four digits of their respective federal tax identification numbers are ITT Educational Services, Inc. [1311]; ESI Service Corp. [2117]; and Daniel Webster College, Inc. [5980].

2 Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 2 of 7 Affiliated Debtors bankruptcy cases on the Petition Date pursuant to section 701(a)(1) of the Bankruptcy Code. 5. On October 4, 2016, the Court entered its Order Granting Motion for Joint Administration of Chapter 7 Cases [Docs 221 & 222], directing the Affiliated Debtors bankruptcy cases to be jointly administered for procedural purposes only. 6. The Affiliated Debtors have not filed their schedules of assets and liabilities (the Schedules ), 2 which would include a list of executory contracts or unexpired leases of residential real property or of personal property (the Executory Contracts ). 3 At this time, the Trustee is unable to make a determination regarding the assumption or rejection of Executory Contracts because not all such contracts are known to the Trustee. III. RELIEF REQUESTED 7. The Trustee has 60 days from the Petition Date to assume or reject the Executory Contracts or such contracts shall be deemed rejected (the Assumption Deadline ). 11 U.S.C. 365(d)(1). The current Assumption Period is set to expire on November 15, The Trustee requests the Court enter an order, pursuant to section 365(d)(1) of the Bankruptcy Code, extending the Assumption Deadline for 90 days, to and including, February 13, 2017, in order to allow the Trustee adequate time to review and make a determination regarding the Executory Contracts. 4 IV. GROUNDS FOR GRANTING RELIEF 9. Pursuant to section 365(d)(1) of the Bankruptcy Code, the Court may extend the Assumption Deadline for cause. 11 U.S.C. 365(d)(1). 2 The Court has granted the Affiliated Debtors an extension to October 17, 2016 to file their Schedules. 3 This does not include unexpired leases of nonresidential real property under which the Affiliated Debtors are the lessee. Pursuant to section 365(d)(4)(A) of the Bankruptcy Code, the Trustee has until the date that is 120 days after the Petition Date (January 14, 2017) to assume or reject unexpired leases of nonresidential real property. 4 Any order extending the Assumption Period shall not apply to any Executory Contracts which the Court has entered an order rejecting such contracts

3 Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 3 of Courts have held that, if a trustee files a motion requesting an extension before the expiration of the Assumption Deadline, the court may extend such deadline. See In re Del Grosso, 115 B.R. 136, 139 (Bankr. N.D. Ill. 1990) (citing In re Southwest Aircraft Servs., Inc., 831 F.2d 848 (9th Cir. 1987)). 11. The Assumption Deadline in the Affiliated Debtors bankruptcy cases has not expired, and therefore, the Trustee s request for relief herein is timely. 12. In addition, when a statute gives a court discretion to extend the time in which a party is required to act, the court has authority to grant such an extension without affording other parties notice or a hearing. Chapman Inv. Assocs. v. Am. Healthcare Mgmt., Inc., (In re Am. Healthcare Mgmt., Inc.), 900 F.2d 827, 832 (5th Cir. 1990). Also, an order extending the time for a debtor to assume or reject a lease merely preserves the status quo, and... is entered in the routine administration of the court. Id. (quoting, Williamette Waterfront, Ltd. v. Victoria Station, Inc. (In re Victoria Station, Inc.), 875 F.2d 1380, 1386 (9th Cir. 1989)). 5 5 The American Healthcare Mgmt., Inc. and Victoria Station, Inc. cases dealt specifically with leases for nonresidential real estate and the time period of section 365(d)(4) of the Bankruptcy Code, which was amended in However, as the relief requested herein is to extend the period of section 365(d)(1) of the Bankruptcy Code, the principles set forth by those cases as to the administrative nature of such extensions of time under section 365(d) of the Bankruptcy Code are still applicable

4 Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 4 of 7 V. NOTICE 13. Pursuant to the Notice, Case Management and Administrative Procedures (the Case Management Procedures ) approved by this Court on October 4, 2016 [Doc 220], the Trustee will serve a copy of this motion on the following (as defined in the Case Management Procedures): (a) the Core Group; (b) the Request for Notice List; and (c) the Appearance List. NOTICE IS GIVEN, that pursuant to the Case Management Procedures, any objection to this motion must be in writing and filed with the Bankruptcy Clerk by no later than October 26, Those not required or not permitted to file electronically must deliver any objection by U.S. mail, courier, overnight/express mail or in person at: 116 U.S. Courthouse 46 East Ohio Street Indianapolis, IN The objecting party must also serve a copy of the written objection upon the Trustee s counsel, at Counsel for Trustee Deborah J. Caruso, Rubin & Levin, P.C., 135 N. Pennsylvania Street, Suite 1400, Indianapolis, IN If an objection is NOT timely filed, the requested relief may be granted without a hearing. NOTICE IS FURTHER GIVEN that in the event of an objection to this motion is timely filed, a hearing on this motion and such objection will be conducted on November 2, 2016 at 2:00 p.m. (prevailing Eastern time), in Room 325 of the United States Courthouse, 46 East Ohio Street, Indianapolis, IN WHEREFORE, the Trustee respectfully requests entry of an Order extending the Assumption Deadline for 90 days, to and including, February 13, 2017 and granting the Trustee all other just and proper relief Respectfully submitted, Proposed counsel to the Trustee RUBIN & LEVIN, P.C. By: /s/ Meredith R. Theisen Meredith R. Theisen Deborah J. Caruso (Atty. No ) John C. Hoard (Atty. No ) James E. Rossow Jr. (Atty. No ) James T. Young (Atty. No ) Joshua W. Casselman (Atty. No ) Meredith R. Theisen (Atty. No )

5 Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 5 of 7 CERTIFICATE OF SERVICE RUBIN & LEVIN, P.C. 135 N. Pennsylvania Street, Suite 1400 Indianapolis, Indiana Tel: (317) Fax: (317) dcaruso@rubin-levin.net johnh@rubin-levin.net jim@rubin-levin.net james@rubin-levin.net jcasselman@rubin-levin.net mtheisen@rubin-levin.net I hereby certify that on October 11, 2016, a copy of the foregoing Trustee s Motion to Extend the Time to Assume or Reject Executory Contracts and Unexpired Leases of Residential Real Property or Personal Property was filed electronically. Notice of this filing will be sent to the following parties through the Court s Electronic Case Filing System. Parties may access this filing through the Court s system. Scott S. Anders scott.anders@jordanramis.com, litparalegal@jordanramis.com Kay Dee Baird kbaird@kdlegal.com, rhobdy@kdlegal.com;crbpgpleadings@kdlegal.com Michael I. Baird baird.michael@pbgc.gov, efile@pbgc.gov Ashley Flynn Bartram ashley.bartram@oag.texas.gov, elizabeth.martin@oag.texas.gov Richard James Bernard rbernard@foley.com Joan Ligocki Blackwell joan.blackwell@btlaw.com Kayla D. Britton kayla.britton@faegrebd.com, cindy.wondra@faegrebd.com;sarah.herendeen@faegrebd.com James E. Carlberg jcarlberg@boselaw.com, mwakefield@boselaw.com;rmurphy@boselaw.com Deborah Caruso dcaruso@rubin-levin.net, dwright@rubin-levin.net;mcruser@rubinlevin.net Deborah J. Caruso trusteecaruso@rubin-levin.net, DJC@trustesolutions.net;mcruser@rubin-levin.net Joshua W. Casselman jcasselman@rubin-levin.net, angie@rubin-levin.net Sonia A. Chae chaes@sec.gov John Andrew Chanin jchanin@lindquist.com Michael Edward Collins mcollins@manierherod.com Lawrence D. Coppel lcoppel@gfrlaw.com Heather M. Crockett Heather.Crockett@atg.in.gov, kelly.stclair@atg.in.gov David H DeCelles david.h.decelles@usdoj.gov Dustin R. DeNeal dustin.deneal@faegrebd.com, cindy.wondra@faegrebd.com;sarah.herendeen@faegrebd.com Laura A DuVall Laura.Duvall@usdoj.gov, Catherine.henderson@usdoj.gov Abby Engen aengen@nmag.gov Charles Anthony Ercole cercole@klehr.com, acollazo@klehr.com Andrew W Ferich awf@chimicles.com

6 Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 6 of 7 Patrick F.X. Fitzpatrick pfitzpatrick@beneschlaw.com, Lydia Eve French lydia.french@state.ma.us Julian Ari Hammond Jhammond@hammondlawpc.com, ppecherskaya@hammondlawpc.com Adam Craig Harris adam.harris@srz.com Rocio Herrera rocio@johnsonblumberg.com, bkecfnotices@johnsonblumberg.com Michael W. Hile mhile@jacobsonhile.com, badams@jacobsonhile.com John C. Hoard johnh@rubin-levin.net, marie@rubinlevin.net;atty_jch@trustesolutions.com Jeffrey A Hokanson jhokanson@fbtlaw.com, tacton@fbtlaw.com;jhokanson@ecf.inforuptcy.com Jeffrey L Hunter jeff.hunter@usdoj.gov, USAINS.ECFBankruptcy@usdoj.gov;denise.woody@usdoj.gov;kristie.baker@usdoj.gov James C Jacobsen jjacobsen@nmag.gov, eheltman@nmag.gov Christine K. Jacobson cjacobson@jacobsonhile.com, cjacobson@ecf.inforuptcy.com;badams@jacobsonhile.com Jay Jaffe jay.jaffe@faegrebd.com, sarah.herendeen@faegrebd.com Benjamin F Johns bfj@chimicles.com, klw@chimicles.com Anthony R. Jost tjost@rbelaw.com, baldous@rbelaw.com Timothy Q. Karcher tkarcher@proskauer.com Taejin Kim tae.kim@srz.com Edward M King tking@fbtlaw.com, lsugg@fbtlaw.com;tking@ecf.inforuptcy.com Lawrence Joel Kotler ljkotler@duanemorris.com Jerrold Scott Kulback jkulback@archerlaw.com David S Lefere dlefere@mikameyers.com Donald D Levenhagen dlevenhagen@landmanbeatty.com Melinda Hoover MacAnally Melinda.MacAnally@atg.in.gov, kelly.stclair@atg.in.gov Jeff J. Marwil jmarwil@proskauer.com, npetrov@proskauer.com;pyoung@proskauer.com;jwebb@proskauer.com Patrick Francis Mastrian pmastrian@btlmlaw.com Michael K. McCrory mmccrory@btlaw.com, bankruptcyindy@btlaw.com Robert W. Miller rmiller@manierherod.com James P Moloy jmoloy@boselaw.com, dlingenfelter@boselaw.com;mwakefield@boselaw.com Ronald J. Moore Ronald.Moore@usdoj.gov Hal F Morris hal.morris@oag.texas.gov Kevin Alonzo Morrissey kmorrissey@lewis-kappes.com, JMcAlpin@lewiskappes.com;leckert@lewis-kappes.com;KTinsley@lewis-kappes.com Whitney L Mosby wmosby@bgdlegal.com, floyd@bgdlegal.com C Daniel Motsinger cmotsinger@kdlegal.com, cmotsinger@kdlegal.com;crbpgpleadings@kdlegal.com;lsmalley@kdlegal.com Lee Duck Moylan lmoylan@klehr.com, acollazo@klehr.com Alissa M. Nann anann@foley.com Jack A Raisner jar@outtengolden.com Jonathan Hjalmer Reischl jonathan.reischl@cfpb.gov - 6 -

7 Case JMC-7A Doc 302 Filed 10/11/16 EOD 10/11/16 11:04:23 Pg 7 of 7 James E Rossow jim@rubin-levin.net, ATTY_JER@trustesolutions.com;robin@rubinlevin.net;lisa@rubin-levin.net Rene Sara Roupinian rsr@outtengolden.com, jxh@outtengolden.com;kdeleon@outtengolden.com;rmasubuchi@outtengolden.com;rfis her@outtengolden.com;gl@outtengolden.com Craig Damon Rust craig.rust@doj.ca.gov, Kristine.orr@doj.ca.gov Joseph Michael Sanders jsanders@atg.state.il.us Thomas C Scherer tscherer@bgdlegal.com, rjenkins@bgdlegal.com Courtney Michelle Scott cscott1@dor.in.gov Lauren C. Sorrell lsorrell@kdlegal.com Jonathan David Sundheimer jsundheimer@btlaw.com Meredith R. Theisen mtheisen@rubin-levin.net, dwright@rubinlevin.net;mcruser@rubin-levin.net Jessica L Titler jt@chimicles.com Ronald M. Tucker rtucker@simon.com, cmartin@simon.com,bankruptcy@simon.com U.S. Trustee ustpregion10.in.ecf@usdoj.gov Sally E Veghte sveghte@klehr.com, acollazo@klehr.com Michael Benton Willey michael.willey@ag.tn.gov James T Young james@rubin-levin.net, lking@rubinlevin.net;atty_young@bluestylus.com I further certify that on October 11, 2016, a copy of the foregoing Trustee s Motion to Extend the Time to Assume or Reject Executory Contracts and Unexpired Leases of Residential Real Property or Personal Property was mailed by overnight mail and properly address to the following: Eboney Cobb Perdue Brandon Fielder Collins Mott LLP 500 E Border Street Suite 640 Arlington, TX Elizabeth Weller Linebarger Goggan Blair & Sampson, LLP 2777 N. Stemmons Freeway Suite 1000 Dallas, TX Alan M Grochal 100 East Pratt Street 26th Floor Baltimore, MD /s/ Meredith R. Theisen Meredith R. Theisen Paul Weiser Esq. Bachalter Nemer North Scottsdale Road, Suite 440 Scottsdale, AZ g:\wp80\trustee\caruso\itt educational \drafts\motion extend assumption deadline.doc - 7 -