Debtor

Good afternoon, Your Honor.

Julia Barassi from Kohl's Shaw's Proposed Council for the Debtors.

Next up is item number three on the agenda, which is docket number five, the debtor's motion seeking entry of an order restating and enforcing the worldwide automatic stay, anti-discrimination provisions, and ipso facto protections of the Bankruptcy Code and approving the form and manner of notice related thereto.

The debtors further seek authority to translate the motion in order and the notice to better inform parties and interests.

And all of a sudden, Wells Fargo triggers the loan covenants.

It says, if you go below Mr. Borrower or developer owner, if you get below a certain LTV, I can make a capital call on you and you got to pony up money.

So they're going after... fully performing and saying, look, Mr.

General Partner, you need to give us $3 million to bring your LTV down.

The litigation trust assets include certain assets the SBV debtors may have rights into, such as books and records and work product.

And while the debtors were trying to work out and accommodate issues, including those related to privilege, The transaction affects SPV-related assets without an express agreement with the SPV debtors.

The debtor's co-CEO, Mr. Moore, stated he did not discuss these issues with the SPV Debtors Conflicts Council, but regardless, based on the record, there are SPV estate assets that will be transferred.

A good example, the FBG debtors asked the court to fine that the estate claims credit bid transaction is in exchange for good and valuable consideration the best interests of the FBG debtors' estates, fair and equitable and reasonable and free and clear, and that the effect that I have to do and notice, and that the relevant parties are afforded the protections under Section 363M of the bankruptcy code and the credit bid is sought using 363K.

Based on the illustrative waterfall analysis, Administrative, again, priority claims will not be paid until there's about $2 billion in aggregate distributable proceeds.

Thus, the effective date of the plan is conditioned upon the litigation trust and or the dip collateral trust having enough cash on hand to satisfy all out administrative expense and priority claims.

Under Section 5.2 of the plan is where the debtors, FBGs ask the debtors to find that the estate credit bid transaction is supported by good and valuable consideration and was affected after due notice and opportunity for a hearing and for the good faith findings under 363M.

363B permits a debtor to sell property outside of the ordinary course with court approval at the closing argument Council for the Debtors confirmed that the credit bidding of the dip A loans is under Section 363K.