Case: 3:16-cv wmc Document #: 3 Filed: 07/06/16 Page 1 of 6 UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WISCONSIN
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1 Case: 3:16-cv wmc Document #: 3 Filed: 07/06/16 Page 1 of 6 UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WISCONSIN In re: CAPITOL LAKES, INC., 1 Debtor. Case No. 16-cv MOTION TO EXPEDITE HEARING ON MOTION OF SANTANDER BANK, N.A. AND KBC BANK N.V. FOR STAY PENDING APPEAL Santander Bank, N.A. (together, the Banks ), by and through their undersigned counsel, file this motion (this Motion ), pursuant to Sections 10(1) and 105(a) of title 11 of the United States Bankruptcy Code and Rules 9006(c)(1) and 9007 of the Federal Rules of Bankruptcy Procedure, for an order authorizing an expedited hearing on the Motion of Santander Bank, N.A. and KBC Bank N.V. for Stay Pending Appeal (the Stay Motion, and together with this Motion, the Motions ), and respectfully represents as follows: I. JURISDICTION AND VENUE 1. This Court has jurisdiction over this Motion under 8 U.S.C. 157 and This is a core proceeding under 8 U.S.C. 157(b).. Venue is proper under 8 U.S.C and The debtor in this chapter 11 case, along with the last four digits of its taxpayer identification number, is: Capitol Lakes, Inc. (30). The mailing address of the debtor, solely for purposes of notices and communications, is: 333 W. Main Street, Madison, WI As required by Fed. R. Bankr. P. 8005, the Banks initially requested that the Bankruptcy Court enter a stay pending the Banks appeal here. Because the Bankruptcy Court denied that request on July 6, 016, the Banks now seek relief in this Court.
2 Case: 3:16-cv wmc Document #: 3 Filed: 07/06/16 Page of 6 II. REQUEST TO SHORTEN NOTICE 3 3. Through the Stay Motion, the Banks seek to protect their rights to obtain effective relief in their appeal of the order (the Confirmation Order ) confirming the Debtor s Fifth Amended Plan of Reorganization Under Chapter 11 of the Bankruptcy Code (the Plan ) of the United States Bankruptcy Court for the Western District of Wisconsin (the Bankruptcy Court ), which is currently pending in this Court. The Banks also seek that requested stay on an expedited basis. 4. The 14-day stay of the Confirmation Order pursuant to Bankruptcy Rule 300(e) expires in just three business days (Tuesday, July 1th). Absent an immediate and expedited stay of confirmation before then, the Debtor will commence implementing the Plan, which risks a determination by an appellate court that it is no longer prudent to upset the Confirmation Order on appeal (under what some courts outside the Seventh Circuit describe as the doctrine of equitable mootness ). That risk, the realization of which would preclude appellate review of a plan that substantially and negatively affects the Banks rights and economic interests, coupled with the lack of harm arising from the issuance of a stay to any third-party, establish the grounds upon which a stay pending the Banks appeal should be issued. 5. To provide the Banks with an opportunity to seek a stay prior to expiration of the Bankruptcy Rule 300 stay and the implementation of the Plan, the Banks request that this Court enter an order granting this Motion and scheduling the Stay Motion to be heard as soon as reasonably practical. 3 The facts underlying the Stay Motion are more fully set forth therein.
3 Case: 3:16-cv wmc Document #: 3 Filed: 07/06/16 Page 3 of 6 6. If this Court cannot hear the Stay Motion on an expedited basis, or is otherwise not inclined to expedite its consideration, the Banks respectfully request that, at a minimum, a stay be entered pending this Court s determination of the Stay Motion. III. NOTICE 7. Notice of this Motion has been provided to: (i) counsel for the Debtor; (ii) counsel for Pacific Retirement Services, Inc.; (iii) the Office of the United States Trustee for the Western District of Wisconsin; and (iv) counsel for the official committee of unsecured creditors. The Banks submit that, in light of the nature of the relief requested, no other or further notice is necessary or required. WHEREFORE, the Banks respectfully request entry of an order granting this Motion and (i) staying the Confirmation Order pending this Court s determination of the Stay Motion; (ii) authorizing an expedited hearing on the Stay Motion and (iii) granting such other and further relief as is just and proper under the circumstances. Dated: July 6, 016 DUANE MORRIS LLP By: /s/ John R. Weiss John R. Weiss 190 South LaSalle Street, Suite 3700 Chicago, IL Tel: (31) jrweiss@duanemorris.com Lead counsel for Santander Bank, N.A. Dated: July 6, 016 BALLARD SPAHR LLP By: /s/ Vincent J. Marriott, III Vincent J. Marriott 1735 Market Street, 51st Floor Philadelphia, PA Tel: (15) marriott@ballardspahr.com Lead counsel for KBC Bank N.V. Dated: July 6, 016 WHYTE HIRSCHBOECK DUDEK S.C. By: /s/ Daniel J. McGarry 3
4 Case: 3:16-cv wmc Document #: 3 Filed: 07/06/16 Page 4 of 6 Daniel J. McGarry P.O. Box 1379 Madison, WI Tel: (608) dmcgarry@whdlaw.com Local Counsel to Santander Bank, N.A. and KBC Bank N.V. 4
5 Case: 3:16-cv wmc Document #: 3 Filed: 07/06/16 Page 5 of 6 UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WISCONSIN In re: CAPITOL LAKES, INC., 1 Debtor. Case No. 16-cv ORDER EXPEDITING HEARING ON MOTION OF SANTANDER BANK, N.A. AND KBC BANK N.V. FOR STAY PENDING APPEAL Upon the motion (the Motion ) of Santander Bank, N.A. and KBC Bank N.V. (together, the Banks ), by and through their undersigned counsel, pursuant to Sections 10(1) and 105(a) of title 11 of the United States Bankruptcy Code and Rules 9006(c)(1) and 9007 of the Federal Rules of Bankruptcy Procedure, for an order authorizing an expedited hearing on and shortened notice period for the Motion and the Motion of Santander Bank, N.A. and KBC Bank N.V. for Stay Pending Appeal (the Stay Motion, and together with the Motion, the Motions ); this Court having jurisdiction over this matter under 8 U.S.C. 157 and 1334; consideration of the Motion and the relief requested therein being a core proceeding under 8 U.S.C. 157(b)(); venue being proper before this Court under 8 U.S.C and 1409; due and proper notice of the Motion having been provided to the necessary parties; it appearing that no other or further notice need be provided; and this Court having determined that the legal and factual bases set forth in the Motion establish just cause for the relief granted herein; IT IS HEREBY: 1 The debtor in this chapter 11 case, along with the last four digits of its taxpayer identification number, is: Capitol Lakes, Inc. (30). The mailing address of the debtor, solely for purposes of notices and communications, is: 333 W. Main Street, Madison, WI All capitalized terms not defined herein shall have the meaning ascribed to them in the Motion.
6 Case: 3:16-cv wmc Document #: 3 Filed: 07/06/16 Page 6 of 6 ORDERED, that the Motion is GRANTED; and it is further ORDERED, that pursuant to Federal Rule of Bankruptcy Procedure 8007, the Confirmation Order is hereby stayed pending entry of a final order of this Court adjudicating the Stay Motion; ORDERED, that a hearing on the Stay Motion will be held on July, 016 at _:.m., prevailing Central Time before the United States District Court for the Western District of Wisconsin, 10 North Henry Street, Madison, Wisconsin 53703; ORDERED, that any objection to the Stay Motion shall be filed on the docket by July, 016 at _:.m., prevailing Central Time; and it is further ORDERED, that this Court shall retain jurisdiction over any and all matters arising from or related to the implementation or interpretation of this Order.
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