Attorneys For Hannibal Pictures, Inc.: Substantively Consolidated
Attorneys For Hannibal Pictures, Inc.: Substantively Consolidated
Attorneys For Hannibal Pictures, Inc.: Substantively Consolidated
0685 Fax: 800.364.1291 and Kenneth C. Greene Hamrick & Evans, LLP 111 Universal Hollywood Drive Suite 2200 Universal City, CA 91608 Tel: 818.763.5292 Fax: 818.763.2308 Attorneys for Hannibal Pictures, Inc. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------------x In re: SONYA TREMONT-MORGAN, et al. Debtors. ------------------------------------------------------x Chapter 11
Hearing Date: August 31, 2011 Hearing Time: 10:00 a.m. Response Deadline: August 26, 2011
MOTION, PURSUANT TO F.R.B.P. RULE 2004, FOR ORDER AUTHORIZING ORAL EXAMINATION OF JOHN ADAMS MORGAN AND FOR PRODUCTION OF DOCUMENTS TO: THE HONORABLE SHELLEY C. CHAPMAN, UNITED STATES BANKRUPTCY JUDGE: Hannibal Pictures, Inc. (Hannibal), by its undersigned counsel, submits this motion (Motion) for an order, pursuant to Federal Rule of Bankruptcy Procedure 2004, authorizing Hannibal to conduct an oral examination of John Adams Morgan (Morgan) and directing Morgan to produce certain documents, and respectfully represents as follows:
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personality and a cast member of the television program The Real Housewives of New York City. 2. On November 17, 2010, Tremont-Morgan filed a Chapter 11 petition for relief with
this court for the purpose of staying enforcement of a final judgment (the Hannibal Judgment) dated September 1, 2009, against her in the principal amount of $6,816,294 plus punitive damages of $250,000, interest and costs in the matter of Hannibal Pictures, Inc. v. Sonja Productions, Inc. and Sonja Tremont-Morgan in the United States District Court for the Central District of California (Case No. CV-06-1814 WDK). 3. 4. Tremont-Morgan holds a 99.6% interest in STAM LLC (STAM). On January 10, 2011, Tremont-Morgan caused STAM to file a Chapter 11 petition
for relief with this court. 5. Upon information and belief, the Debtors remain in possession of their assets and
are operating their affairs as debtors-in-possession pursuant to Sections 1107 and 1108 of the Bankruptcy Code and no creditors committee has been appointed. 6. Pursuant to an order of this Court, the Tremont-Morgan and STAM (together, the
Debtors) Chapter 11 cases have been substantively consolidated. 7. The Debtors consolidated assets include, among other things, a townhouse
belonging to STAM located at 162 East 63rd Street, New York, New York 10065 (the Townhouse), which is Tremont-Morgans primary residence, with equity of approximately $6,000,000, a part interest in an entity that owns certain real property located in Telluride, Colorado (the Colorado Property) in which Morgan has equity of approximately $1,500,000 and a part
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interest in an entity that owns certain real property located in Ramatuella, France (the French Property) in which Tremont-Morgan has equity of approximately $2,000,000. 8. Among Tremont-Morgans other assets are a $3,000,000 that is part of a divorce
judgment (the Divorce Judgment) against Morgan, her former husband, in the State of Connecticut and approximately $300,000 in back alimony due her by Morgan. Upon information and belief, payment of both these amount, though uncontested, are being delayed by an appeal by Morgan from certain other portions of the Divorce Judgment. In addition, Tremont-Morgan has approximately $1,000,000 in cash. 9. On the liability side, the Debtors have approximately $7,400,000 of unsecured debts
of which not less than approximately $7,000,000 represents the Hannibal Judgment. Thus, Hannibal holds not less than approximately 95% of the Debtors unsecured debt. Since the combined value of the Debtors equity in the Townhouse, the Colorado Property and the French Property, coupled with the Divorce Judgment and available cash total approximately $13,500,000, there are ample assets available to pay the Hannibal Judgment in full, with interest. 10. Based on the foregoing, it is self-evident that Hannibal has an overwhelming and
dominant interest in a prompt administration of the Debtors estates. Unfortunately, it seems that a plan of reorganization providing for payment to Hannibal is being needlessly delayed because Morgan is intentionally withholding payment of the Divorce Settlement as well as his necessary cooperation in sales of the Colorado and French Properties, both of which are essential to funding a plan of reorganization without liquidating the Townhouse. Hannibal believes that Morgans behavior is unreasonable and is interfering with the administration of the Debtors chapter 11 cases and payments to creditors.
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Relief Requested 11. To help remedy this situation, Hannibal proposes to conduct an oral examination of
Morgan and have Morgan produce relevant documents pursuant to Rule 2004 for the purpose determining whether Morgans conduct is intentionally and improperly interfering with the bankruptcy process. The outcome of that process will establish whether specific actions can be taken against Morgan that will facilitate the administration of the Debtors estates and, ultimately, payment to Hannibal. 12. Bankruptcy Rule 2004(a) provides that upon the motion of any party in interest, the
court may order the examination of any entity. Fed. R. Bankr. P. 2004(a). It is well established that the investigation envisioned by this rule is broad-based, relating to any and all matters affecting the administration of the debtors estate, as well as the conduct, liabilities, or property of the debtor. 13. Discovery under Rule 2004 is broader than that available under the Federal Rules of
Civil Procedure. In re Drexel Burnham Lambert Group, Inc., 123 B.R. 702, 711 (Bankr. S.D.N.Y. 1991). In fact, the scope of a Rule 2004 examination is so broad that it can be in the nature of a fishing expedition. In re Coffee Cupboard, Inc., 128 B.R. 509, 514 (Bankr. E.D.N.Y. 1991); In re Silverman, 36 B.R. 254, 258 (Bankr. S.D.N.Y. 1984). 14. A Rule 2004 examination of Morgan is necessary to ensure the proper investigation
of the status of the Colorado and French Properties and the Divorce Settlement in order to promote and the orderly and prompt liquidation of the Debtors unencumbered assets necessary to fund a plan of reorganization. Without an examination of Morgan, the Debtors ability to make a determination regarding assets and claims of the Debtors estate will be impeded and payments to creditors will be unreasonably delayed.
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15.
Hannibal believes the facts set forth herein provide a sufficient basis for the issuance
of an order granting the requested relief and for authorization to conduct a Rule 2004 examination.
Proposed Procedure 16. Hannibal proposes that any examination be held at offices of its counsel, The
Michaelson Law Firm, 11 Broadway, Suite 615, New York, New York 10004. 17. In accordance with Rule 2004(c), Hannibal proposes to serve Morgan with a
subpoena duces tecum requesting such documents and electronic files as are required to complete Hannibals investigation. Trustee proposes to serve any subpoena duces tecum at least 10 days prior to the due date for any documents or electronic files or oral examination. 18. to Morgan. Notice 19. Trustee has provided notice of this Motion to the Debtors, counsel to the Debtors, Hannibal submits that the foregoing procedures are fair will provide adequate notice
Morgan, all creditors of the Debtors who are either listed in the Debtors Schedules of Assets and Liabilities or who have filed proofs of claim and the United States Trustee. 20. this Motion. Memorandum of Law 21. Hannibal respectfully requests that this Court waive the requirements of Local Hannibal respectfully submits that such notice be deemed fair and adequate notice of
Bankruptcy Rule 9013-1(b) that any motion filed shall have an accompanying memorandum of law. No novel issues of law are presented in this application and many citations to the relevant authority
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are contained herein. Accordingly, Hannibal submits that waiver of the requirements of Rule 90131(b) is appropriate under these circumstances. No Prior Relief 18. No prior application for the relief sought herein has been made to this or any other Court. WHEREFORE, Hannibal respectfully requests that this Application be granted, that the proposed order authorizing Hannibal to conduct discovery pursuant to Rule 2004 be entered, and that it be granted such other and further relief as is just and proper. Dated: August 10, 2011 New York, New York The Michaelson Law Firm 11 Broadway, Suite 615 New York, New York 10004 Tel: 212.604.0685 Fax: 800.364.1291 /s/ Robert N. Michaelson and Kenneth C. Greene Hamrick & Evans, LLP 111 Universal Hollywood Drive Suite 2200 Universal City, CA 91608 Tel: 818.763.5292 Fax: 818.763.2308 Attorneys for Hannibal Pictures, Inc.
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