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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF WEST VIRGINIA
In re
Panthera Enterprises, LLC,
Debtor.
:
:
:
:
Bankruptcy Case No. 2:19-bk-00787
Chapter 11
WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY'S
SUPPLEMENT TO OBJECTION TO DEBTOR'S SECOND
MOTION FOR EXTENSION OF EXCLUSIVITY PERIOD
West Virginia Economic Development Authority ("WVEDA"), by its counsel,
respectfully submits this Supplement to its Objection to Debtor's Second Motion for Extension of
Exclusivity Period, to state, as follows, an additional ground for denial of the Debtor's request:
1.
Debtor filed on March 12, 2020 its Second Motion for Entry of Order Under 11
U.S.C. § 1121(d), Extending the Exclusivity Period for Filing and Confirming a Plan of
Reorganization and Disclosure Statement ("Debtor's Second Motion to Extend Exclusivity").
Dkt. 100.
2.
WVEDA filed its Objection to Debtor's Second Motion to Extend Exclusivity on
March 31, 2020 ("WVEDA's Objection"). Dkt. 111.
3.
In addition to the grounds argued in WVEDA's Objection, upon information and
belief, Debtor has allowed the commercial property and casualty insurance on Debtor's real
property to lapse, providing yet another basis on which to deny Debtor's request.
4.
Debtor scheduled certain real property at 2506 Fish Pond Road, Old Fields, West
Virginia ("Real Property"), with a value of $15,050,000.
5.
The Real Property is collateral for two secured loans made to the Debtor
prepetition by WVEDA. Under the loan documents, Debtor is required to maintain liability and
casualty insurance and include with the insurance a "New York Standard Mortgage Clause" for
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the benefit of WVEDA. In addition, such insurance is necessary to protect the Debtor's most
valuable asset.
6.
Debtor previously provided a Certificate of Liability Insurance and Evidence of
Commerical Property Insurance, for the period of October 30, 2018 - October 31, 2019. There
have been several requests to the Debtor to provide evidence that this insurance coverage is still
in place. Debtor responded this week that Panthera Training LLC ("Training") was "the party
required to maintain insurance."
7.
Panthera Training LLC's obligation to maintain liability insurance is found in a
Commercial Lease Agreement with the Debtor. WVEDA is not a party to the Agreement. Upon
review of the Lease Agreement, there is no requirement for Training to maintain property and
casualty insurance. Dkt. 52-6.
8.
WVEDA confirmed with Training that general liability insurance is in place.
However, there is no property and casualty insurance. Based upon the Debtor's response,
WVEDA is left to conclude the Real Property is uninsured.
9.
A debtor's failure to pay its bills as they come due -- in this instance, a failure to
pay premiums to maintain necessary insurance -- is one of the factors to be considered in
response to a Debtor's request to extend the exclusivity period. See In re Michigan Produce
Haulers, Inc., 525 B.R. 408, 413 (W.D. Mich. 2015), cited in WVEDA's Objection. WVEDA
submits this is an additional ground on which Debtor's Second Motion to Extend Exclusivity
should be denied.
WHEREFORE, for the reasons cited above and in WVEDA's Objection, West Virginia
Economic Development Authority respectfully requests this Court to deny Debtor's Second
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Motion to Extend Exclusivity Period, and grant such other and further relief as the Court deems
appropriate.
Dated: April 8, 2020
WEST VIRGINIA ECONOMIC
DEVELOPMENT AUTHORITY
By Spilman Thomas & Battle, PLLC
s/ Debra Lee Allen
Debra Lee Allen, WVSB # 9838
48 Donley Street, Suite 800
Morgantown, WV 26507-0615
304.291.7920 | 304.216.5835
Email: dallen@spilmanlaw.com
Counsel for West Virginia
Economic Development Authority
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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF WEST VIRGINIA
In re
Panthera Enterprises, LLC,
Debtor.
:
:
:
:
Bankruptcy Case No. 2:19-bk-00787
Chapter 11
CERTIFICATE OF SERVICE
I, Debra Lee Allen, hereby certify that on this 8th day of April, 2020, the foregoing West
Virginia Economic Development Authority's Supplement to Objection to Debtor's Second Motion
for Extension of Exclusivity Period was served through the Court’s ECF system on all parties
registered to receive CM/ECF notices, including:
Mark Lindsey, Esq.
Bernstein Burkley, P.C.
707 Grant St., Suite 2200
Pittsburgh, PA 15219
Counsel for Defendant
Panthera Enterprises, LLC
/s/ Debra Lee Allen
Debra Lee Allen, WV Bar # 9838
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