UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION. Debtor. / Emergency Relief Requested

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1 UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION In re: Chapter 11 BRENTWOOD APARTMENTS TAMPA, LLC, Case No. 8:10-bk-3334-KRM Debtor. / Emergency Relief Requested A hearing on this Motion will be held on February 25, 2010, at 2:30 p.m., in Courtroom 9B, Sam M. Gibbons United States Courthouse, 801 N. Florida Avenue, Tampa, Florida, before the Honorable K. Rodney May, Bankruptcy Judge. DEBTOR S AMENDED EMERGENCY MOTION PURSUANT TO 11 U.S.C. 364(c) FOR AUTHORIZATION TO ENTER INTO PREMIUM FINANCE AGREEMENT WITH PRIME RATE PREMIUM FINANCE CORPORATION, INC. (TO CORRECT NOTICE OF HEARING AND CERTIFICATE OF SERVICE) Brentwood Apartments Tampa, LLC (the Debtor ), by and through its undersigned attorneys, hereby files its Amended Emergency Motion Pursuant to 11 U.S.C. 364(c) for Authorization to Enter Into Premium Finance Agreement With Prime Rate Premium Finance Corporation, Inc. (the Motion ) and requests the entry of an order authorizing it to enter into the insurance premium finance agreement attached hereto as Exhibit A. In support of its Motion, the Debtor respectfully represents as follows: Jurisdiction and Venue 1. This Court has jurisdiction to consider this Motion pursuant to 28 U.S.C. 157 and The subject matter of this Motion is a core proceeding pursuant to 28 U.S.C. 157(b). Venue is proper in this district pursuant to 28 U.S.C The

2 statutory predicate for the relief sought herein is 11 U.S.C. 364(c). No previous application for the relief sought herein has been made by the Debtor to this Court or any other court. Background 2. On February 17, 2010 (the Petition Date ), the Debtor filed its Voluntary Petition for Relief under Chapter 11 of Title 11 of the United States Code (the Bankruptcy Code ). 3. The Debtor is operating its business and managing its property as debtor in possession pursuant to 1107(a) and 1108 of the Bankruptcy Code. 4. No trustee or examiner has been appointed in this case and no official committees have yet been appointed pursuant to 1102 of the Bankruptcy Code. 5. The Debtor is the owner of an apartment complex located at 8741 Grove Terrace, Tampa, (the Complex ). The Complex consists of 13 two-story structures with 180 units ranging in size from two bedroom, one bath to two bedroom, two bath. Relief Requested and Basis for Relief 6. In the ordinary course of its business, the Debtor must maintain various insurance policies, including general liability and umbrella insurance. The Debtor has received a binding commitment for such insurance (the Insurance ). 7. The total premium for the Insurance is $87, The Debtor does not have sufficient funds to pay the premium for the Insurance in one installment and needs to obtain financing for such premium. 2

3 8. Subject to Court approval, the Debtor entered into a Premium Finance Agreement (the Agreement ) with Prime Rate Premium Finance Corporation, Inc. ( Prime Rate ). Pursuant to the Agreement, the Debtor is required to make a down payment to Prime Rate in the amount of $21, and to make nine (9) equal monthly payments in the amount of $7, The annual percentage rate will be 6.05% and the total amount of the finance charges under the Agreement will be $1, A copy of the Agreement is attached hereto as Exhibit A and incorporated herein by reference. 9. The Debtor is unable to pay the premium for the Insurance in the ordinary course of business pursuant to 11 U.S.C. 364(a) and is unable to obtain unsecured credit for such payment pursuant to 11 U.S.C. 364(b). The Insurance identified in the Agreement is necessary and crucial to the operation of the Debtor s business. Indeed, the Debtor must maintain the Insurance in order to proceed in this Court. Accordingly, the relief sought herein is in the best interest of the estate and its creditors. 10. The Debtor seeks to grant Prime Rate a lien and security interest in any and all unearned or return premiums and dividends which may become payable under the Insurance policies identified in the Agreement. These Insurance policies and unearned premiums or dividends are not otherwise subject to a lien. Such liens and security interests shall be deemed duly perfected without further action by Prime Rate and shall be senior to the rights of the Debtor s estate and existing creditors in this or any subsequent proceeding. 11. As a condition of entering into the Agreement, Prime Rate requires that: (a) in the event of a default by the Debtor in making the monthly payments due under the 3

4 Agreement which default remains uncured for ten (10) days after notice to the Debtor and an opportunity to cure, it be authorized to terminate the Agreement without seeking relief from the automatic stay or further order of the Court; and (b) any sums that remain due under the Agreement after default and exercise of Prime Rate s rights shall be deemed an administrative expense of the estate. 12. Prime Rate is extending financing under the Agreement in good faith within the meaning of 11 U.S.C. 364(c). WHEREFORE, the Debtor respectfully requests that the Court enter an order granting the Motion, authorizing the Debtor to enter into the Premium Finance Agreement with Prime Rate Premium Finance Corporation, Inc., approving the Premium Finance Agreement attached hereto as Exhibit A, and providing such other and further relief as may be just. Dated this 22 nd day of February, /s/ Amy Denton Harris Scott A. Stichter Florida Bar No Amy Denton Harris Florida Bar No Stichter, Riedel, Blain & Prosser, P.A. 110 E. Madison Street, Suite 200 Tampa, Florida Telephone: (813) Facsimile: (813) sstichter@srbp.com aharris@srbp.com 4

5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing DEBTOR S AMENDED EMERGENCY MOTION PURSUANT TO 11 U.S.C. 364(c) FOR AUTHORIZATION TO ENTER INTO PREMIUM FINANCE AGREEMENT WITH PRIME RATE PREMIUM FINANCE CORPORATION, INC. has been furnished by the Court s CM/ECF system or U.S. MAIL on the 22 nd day of February, 2010 to: Prime Rate Premium Finance Corporation, Inc Enterprise Drive P.O. Box Florence, South Carolina Local Parties in Interest Matrix /s/ Amy Denton Harris Amy Denton Harris 5

6 Label Matrix for local noticing 1st Florida Termite & Pest Control ART Pest Control Services 113A th Street North 776 A. East Prospect Road Case 8:10-bk KRM Kenneth City, FL Oakland Park, FL Middle District of Florida Tampa Thu Feb 18 15:54:54 EST 2010 Barfield Bay Branch Banking and Trust Branch Banking and Trust P.O. Box Company, c/o Robert G. Stern P.O. Box Naples, FL E. Kennedy Blvd. Birmingham, AL Suite 2700 Tampa, FL Brentwood Apartments Tampa, LLC Certified Protective Service City of Temple Terrace th Street 711 South Howard Ave North 56th Street Naples, FL Suite 200 Temple Terrace, FL Tampa, FL Department of Labor and Security Department of Revenue Hillsborough County Tax Collector Hartman Building Suite 307 PO Box 6668 P.O. Box Capital Circle Southeast Tallahassee FL Tampa, FL Tallahassee FL Hines Property Tax Consulting (p)internal REVENUE SERVICE Investments 2234, LLC 610 South Albany Ave. CENTRALIZED INSOLVENCY OPERATIONS Tax Lien Certificate Holder Suite 408 PO BOX PO Box Tampa, FL PHILADELPHIA PA Atlanta, GA LexisNexis Screening Solutions K. Rodney May Media General P.O. Box Tampa 202 South Parker St. Dallas, TX nd Floor Tampa, FL Office of US Attorney Pool Care Quill Attn Civil Process Clerk 9021 Baywood Park Drive P.O. Box North Tampa St Suite 3200 Seminole, FL Philadelphia, PA Tampa FL Ronald L. Glas Scott A Stichter Suarez Bath Tub & Counter Repair, LLC P.O. Box Stichter, Riedel, Blain & Prosser 7603 Canyon Ct. Naples, FL E. Madison Street, Suite 200 Tampa, FL Tampa, FL Tampa Electric Tanglewood Apartments Teco Peoples Gas P.O. Box P.O. Box P.O. Box Tampa, FL Naples, FL Tampa, FL The Flyer Totally Blu H2O United States Trustee - TPA 2830 Orbiter Street Canal Pointe St. Timberlake Annex, Suite 1200 Brea, CA Tampa, FL E Polk Street Tampa, FL

7 Vertex 5901 Benjamin Center Driver Suite 110 Tampa, FL The preferred mailing address (p) above has been substituted for the following entity/entities as so specified by said entity/entities in a Notice of Address filed pursuant to 11 U.S.C. 342(f) and Fed.R.Bank.P (g)(4). Internal Revenue Service End of Label Matrix P.O. Box Mailable recipients 30 Philadelphia, PA Bypassed recipients 0 Total 30

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