Case 17-12625
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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF LOUISIANA IN RE: COPSYNC, INC. DEBTOR
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CASE NO. 17-12625 CHAPTER 11
OBJECTION TO THE FINAL ORDER (I) AUTHORIZING AND APPROVING POSTPETITION SECURED FINANCING; (II) GRANTING LIENS AND SUPERPRIORITY CLAIMS; (III) MODIFYING THE AUTOMATIC STAY; (IV) ALLOWING THE REPAYMENT OF PREPETITION SECURED CREDIT FACILITY FROM THE POSTPETITION LOAN; (V) APPROVING DEBTOR’S WAIVERS AS TO CERTAIN PREPETITION LOANS; (VI) ALLOWING A FORTY (40) DAY CHALLENGE PERIOD WITHIN WHICH CREDITORS AND STATUTORY COMMITTEES MAY TAKE ACTION TO AVOID THE APPLICATION OF DEBTOR’S WAIVERS; (VII) FOR RELATED RELIEF; AND FINALLY, (VIII) TO FIX A FINAL HEARING ON THIS MOTION NOW INTO COURT, through undersigned counsel, comes Making Sense, LLC, (“Making Sense”) a creditor and party-in-interest herein, which files this Objection (the “Objection”) to the entry of a final order on the Motion for Order (I) Authorizing and Approving Post-Petition Secured Financing; (II) Granting Liens and Superpriority Claims; (III) Modifying the Automatic Stay; (IV) Allowing the Repayment of Prepetition Secured Credit Facility from the Postpetition Loan; (V) Approving Debtor’s Waivers as to Certain Prepetition Loans; (VI) Allowing a Forty (40) Day Challenge Period Within which Creditors and Statutory Committees
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May Take Action to Avoid the Application of Debtor’s Waivers; (VII) for related Relief; and Finally, (VIII) to Fix a Final Hearing on the Motion (the “Motion”)(P-13), as follows: 1. On September 29, 2017, COPsync, Inc. (the “Debtor” or “COPsync”) filed the captioned bankruptcy case under Chapter 11 of title 11 of the United States Bankruptcy Code. 2. The following day, the Debtor filed the Motion and an Interim Order granting the Motion was entered on October 6, 2017 (P-40) (the “Interim Order”). 3. Making Sense objects to the entry of a final order on the following bases. 4. Making Sense objects to the entry of a final order which sets a 40 day limit for the challenge period as the Debtor did not file its Schedules and Statement of Financial Affairs until last night, the Meeting of Creditors is not set until October 30, 2017, and there has not been an opportunity for any committees to be formed. Making Sense and other parties-in-interest lack sufficient information to evaluate whether a challenge should be asserted.
Making Sense
submits, therefore, that creditors and any committee should have 40 days from the Meeting of Creditors to challenge the findings or Debtor’s Stipulations regarding the validity, extent, priority or perfection of the Prepetition Secured Lender’s mortgages, security interests and liens,
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Prepetition Obligations or Roll Up Amount, as more fully set forth in paragraph 14 of the Interim Order.1 5. Making Sense further objects to the characteristic of its claim as a preference under 11 U.S.C. §547 or as unsecured, as well as to the ranking of its claim. To that end, Making Sense also objects to the entry of a final order which characterizes its claim or limits its rights to assert its secured claim or any claim for adequate protection. In the Motion, the Debtor submits that Making Sense, among other creditors, does not have a valid, enforceable secured claim. The nature and validity of Making Sense’s claim is not properly before the Court at this time; thus, the final order should not address the validity, priority or nature of Making Sense’s claim. Accordingly, Making Sense’s right to assert a secured claim and for adequate protection should be reserved. 6. Making Sense submits that a Final Order on postpetition financing is premature as it is impossible to determine the propriety of the facility or the Debtor’s financial condition and needs as the Schedules and Statement of Financial Affairs were filed late yesterday and Making Sense has not had adequate time to evaluate them. 7. Making Sense further objects to the application of post-petition revenues to pay the prepetition debt of the Prepetition Secured Lender as set forth in Paragraph 17. B. for the Interim
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Unless defined herein the capitalized terms are defined in the Motion and Interim Order.
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Order. The Debtor sets forth no justification whatsoever to pay the prepetition lender at this time. 8. Making Sense also objects to entry of the Final Order as the Motion fails to provide what steps the Debtor undertook to obtain postpetition financing. 9. For the foregoing reasons, Making Sense objects to the entry of a final order on postpetition financing, adequate protection, and the Challenge Period, among other things, and reserves its right to assert a secured claim and request adequate protection. Making Sense further reserves its right to amend, supplement or revise this Objection and to raise issues at the hearing once it has had adequate opportunity to review and evaluate the Schedules, Statement of Financial Affairs and any other pleadings that are filed. WHEREFORE, Making Sense, LLC prays that this Honorable Court grant its Objections to the Motion, reserve its right to assert a secured claim and move for adequate protection, and for such other and further relief as this Court deems proper. Respectfully submitted,
/s/Leann Opotowsky Moses Leann Opotowsky Moses (#19439) J. Patrick Gaffney (#1893) CARVER, DARDEN, KORETZKY, TESSIER, FINN, BLOSSMAN & AREAUX, L.L.C. 1100 Poydras Street; Suite 3100 New Orleans, Louisiana 70163 Telephone: (504) 585-3800 Fax: (504) 585-3801 Attorneys for Making Sense, LLC 4
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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF LOUISIANA IN RE: COPSYNC, INC. DEBTOR
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CASE NO. 17-12625 CHAPTER 11
CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of Making Sense, LLC’s Objection to the Final Order Motion for Order (I) Authorizing and Approving Post-Petition Secured Financing; (II) Granting Liens and Superpriority Claims; (III) Modifying the Automatic Stay; (IV) Allowing the Repayment of Prepetition Secured Credit Facility from the Postpetition Loan; (V) Approving Debtor’s Waivers as to Certain Prepetition Loans; (VI) Allowing a Forty (40) Day Challenge Period Within which Creditors and Statutory Committees May Take Action to Avoid the Application of Debtor’s Waivers; (VII) for related Relief; and Finally, (VIII) to Fix a Final Hearing on the Motion has been duly served upon those parties receiving electronic notification via the Court’s CM/ECF System on this 17th day of October, 2017.
/s/Leann Opotowsky Moses Leann Opotowsky Moses (#19439)
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