Document Page 1 of 5 UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY Matthew Brekhus Esq. Wester Law Firm 101 Larkspur Landing Rd. Suite 227 Larkspur CA 94939 mbrekhus@westerlawfirm.com Order Filed on January 16, 2015 by Clerk U.S. Bankruptcy Court District of New Jersey Attorneys for Fatimah Wilson In Re: ASHLEY STEWART HOLDINGS, INC., et. al., Debtors. Chapter 11 Case No. 14-14383 (MBK) Jointly Administered STIPULATION AND ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY PURSUANT TO 11 U.S.C. 362(d) TO PURSUE RECOVERY FROM INSURANCE PROCEEDS ORDERED. The relief set forth on the following pages, numbered two (2) through five (5) is hereby DATED: January 16, 2015
Document Page 2 of 5 Page 2 of 5 This Stipulation (the Stipulation ) is entered into between Fatimah Wilson (the Claimant ), by and through her counsel, Wester Law Firm., and the above-captioned debtors and debtors-in-possession (the Debtors ), by and through their counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP. WHEREAS, on March 10, 2014 (the Petition Date ), the Debtors filed voluntary petitions for relief pursuant to chapter 11 of title 11 of the United States Code (the Bankruptcy Code ); and WHEREAS, Claimant is a plaintiff in a pre-petition action (the Action ) pending in the Superior Court of California, County of Contra Costa, Case No. MSC13-00661, alleging a claim for personal injury; and WHEREAS, the Debtors are insured parties under an insurance policy (the Policy ) with Liberty Mutual Insurance Company which may provide coverage with respect to Claimant s claim; and WHEREAS, Claimant seeks relief from the automatic stay to proceed in the Action solely to the extent that insurance coverage exists with respect to the claim; and WHEREAS, the Claimant and the Debtors seek to modify the automatic stay of creditor action imposed under Section 362 of the Bankruptcy Code on the terms set forth herein. NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED: a. The foregoing provisions are incorporated herein as if set forth separately below. 2
Document Page 3 of 5 Page 3 of 5 b. 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 in the Action to establish liability and damages for the sole purpose of recovering against proceeds of the Policy, if any. c. Any recovery by the Claimant based on any judgment, settlement, mediation, arbitration, or otherwise on account of the Claimant s claims, including relating to the Action, shall be solely from the proceeds of the Policy and not against the Debtors or their estates. d. Claimant waives all claims against the Debtors and their officers and directors, and the Debtors estates, except as set forth herein for the sole purpose of attempting to recover against the Policy. e. The Debtors are authorized to take all actions necessary to effectuate the relief provided by this Stipulation. f. This Stipulation may be modified only by written agreement approved by the Bankruptcy Court. g. Each signatory hereto represents that he or she has the authority to execute this Stipulation on behalf of the party for whom it is executed and to bind that party to all terms set forth herein. h. This Stipulation shall constitute the sole and complete agreement of the parties hereto with respect to the matters addressed herein. i. This Stipulation may be executed simultaneously or in one or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. A facsimile or email copy of a signature page is the equivalent of an original signature page. 3
Document Page 4 of 5 Page 4 of 5 j. The terms and conditions of this Stipulation shall be immediately effective and enforceable upon its entry. k. This Stipulation contains the entire agreement and understanding of the parties hereto with respect to this matter and supersedes any and all prior agreements, arrangements, releases, and understandings, whether oral or written, between the Parties. The Parties agree that the Bankruptcy Court shall retain jurisdiction to resolve any dispute arising with respect to the terms of this Stipulation. IN WITNESS WHEREOF, THE UNDERSIGNED HAVE CAUSED THIS STIPULATION TO BE EXECUTED AS OF THE DATES HEREIN BY DULY AUTHORIZED OFFICERS OR REPRESENTATIVES. WESTER LAW FIRM Attorneys for Fatimah Wilson CURTIS, MALLET-PREVOST, COLT & MOSLE LLP Attorneys for the Debtors By: /s/ Matthew Brekhus Matthew Brekhus Esq. Wester Law Firm 101 Larkspur Landing Rd. Suite 227 Larkspur CA 94939 mbrekhus@westerlawfirm.com DATED: January 14, 2015 By: /s/ Steven J. Reisman Steven J. Reisman, Esq. Cindi M. Giglio, Esq. Bryan Kotliar, Esq. 101 Park Avenue New York, NY 10178-0061 sreisman@curtis.com DATED: January 14, 2015 4
Document Page 5 of 5 Page 5 of 5 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 10017 Telephone: (212) 561-7700 Facsimile: (212) 561-7777 Counsel for the Official Committee of Unsecured Creditors 5