Case KG Doc 201 Filed 02/23/18 Page 1 of 2

Transcription

1 Case KG Doc 201 Filed 02/23/18 Page 1 of 2 IN THE UNITED STATES BANKRUPTCY COURT F4R THE DISTRICT OF DELAWARE In re: PES HOLDINGS, LLC, et al.,l Debtors. Chapter 11 Case No (KG) (Jointly Administered) Re: Docket Nos. 7, 83 CERTIFICATE OF NO gbjection REGARDING FINAL ORDER (I) APPROVING THE DEBTORS' PROPOSED ADEQUATE ASSURANCE OF PAYMENT FOR FUTURE UTILITY SERVICES, (In PROHIBITING UTILITY COIi~IPANIES FROM ALTERING, REFUSING, OR DISCONTINUING SERVICES, AND (III) APPROVING THE DEBTORS' PROPOSED PROCEDURES FOR RESOLVING ADDITIONAL ADEQUATE ASSURANCE REQUESTS The undersigned hereby certifies that, as of the date hereof, he has received no answer, objection, or other responsive pleading to the final relief requested in the Debtors' Motion for Entry of Interim and Final Orders (I) Approving the Debtors' Proposed Adequate Assurance of Payment for Future Utilities Sei^vzces, (II) Prohibiting Utility Companies from Altering, Refusing, or Discontinuing Services, and (III) Approving the Debtors' Proposed Procedures for Resolving Additional Assurance Requests [Docket No. 7] (the "Motion"), filed on January 22, The undersigned further certifies that he has reviewed the Court's docket in this case and no answer, objection, or other responsive pleading to the final relief requested in the Motion appears thereon. Pursuant to the Notice of Entry of Interim Order and Final Hearing Regarding Motion fon Interim and Final Orders Establishing Adequate Assurance Procedures with Respect to the Debtors' The Debtors in these chapter 11 cases, along with the last four digits of each Debtor's federal tax identification number, are: PES Holdings, LLC (8157); North Yard Financing, LLC (6284); North Yard GP, LLC (5458); North Yard Logistics, L.P. (5952); PES Administrative Services, LLC (3022); PES Logistics GP, LLC (9202); PES Logistics Pai~tne~s, L.P, (1288); PESRM Holdings, LLC (2107); and Philadelphia Energy Solutions Refining and Marketing LLC (9574). The Debtors' service address is: 1735 Market Street, Philadelphia, Pennsylvania

2 Case KG Doc 201 Filed 02/23/18 Page 2 of 2 Utility Providers [Docket No. 104], objections to the Motion were to be filed on or before February 16, 2018, at 4:00 p.m. (prevailing Eastern Time). It is hereby respectfully requested that the proposed order attached hereto as Exhibit A be entered at the Court's earliest convenience. Dated: February 23, 2018 /s/timothy P. Cairns Wilmington, Delaware Laura Davis Jones (DE Bar No. 2436) Timothy P. Cairns (DE Bar No. 4228) Peter J. Keane (DE Bar No. SSQ3) PACHULSKI STAND ZIEHL &JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, Delaware (Courier 19801) Telephone: (302) Facsimile: (3Q2) lj ones@pszj law.com tcairns@pszjlaw.com pkeane@pszjlaw.com - and - James H.M. Sprayregen, P.C. Steven N. Serajeddini (admitted pro hac vice) KIRKLAND & ELLIS LLP HIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Street Chicago, Illinois Telephone: (3l2) Facsimile: (312) james.sprayregen@kirkland.com Steven. seraj eddini@kirkl and.com -and- Edward O. Sassower, P.C. (admitted pro hac vice) Matthew C. Fagen (admitted pro hac vzce) KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 60 ] Lexington Avenue New York, New York Telephone: (212) Facsimile: (212) edward.sassower@kirkland.com matthew.fagen@kirkland.com Proposed Co-Counsel to the Debtors and Debtors in Possession 'ra

3 Case KG Doc Filed 02/23/18 Page 1 of 8 Exhibit A Proposed Final Order

4 Case KG Doc Filed 02/23/18 Page 2 of 8 IN THE UNITED STATES BANKRUPTCY C(?URT F0~2 TIE DZ~T~tIC~ OF ID~LA~'6~AI2E 1n re: PES HOLDINGS, LLC, et al.,' Debtors. Chapter ] 1 Case No (KG) (Jointly Administered) Re: Docket Nos. 7, 83 FINAL ORDER (I) APPROVING THE DEBTORS' PROPOSED ADEQUATE ASSURANCE OF PA~'1VIENT FOR FUTURE UTILITY SERVICES, (II) PROHIBITING UTILITY COMPANIES FROM ALTERING, REFUSING, OR DISCONTINUING SERVICES, AND (III) APPROVING THE DEBTORS' PROPOSED PROCEDURES FOR RESOLVING ADDITIONAL ASSURANCE REQUESTS Upon the motion (the"motion")2 of the above-captioned debtors and debtors in possession (collectively, the "Debtors") for entry of an order (this "Final Order") (i) approving the Debtors' Proposed Adequate Assurance of payment for future utility services, (ii) prohibiting Utility Companies from altering, refusing, or discontinuing services, and (iii) approving the Adequate Assurance Procedures for resolving Additional Assurance Requests, all as more fully set forth in the Motion; and upon the First Day Declaration; and this Court having jurisdiction over this matter pursuant to 28 U.S.C. l 57 and 1334 and the Amended Standing Order; and that this Court may enter a final order consistent with Article III of the United States Constitution; and this Court having found that venue of this proceeding and the Motion in this district is proper pursuant to ~ The Debtors in these chapter 11 cases, along with the last four digits of each Debtor's federal tax identification number, are: PAS Holdings, LLC (8157); North Yard Financing, LLC (6284); North Yard GP, LLC (5458); No~~th Yard Logistics, L.P. (5952); PES Administrative Services, LLC (3022); PES Logistics GP, LLC (9202); PES Logistics Partners, L.P. (1288); PESRM Holdings, LLC (2107); and Philadelphia Energy Solutions Refining and Marketing LLC (9574). The Debtors' service address is: 1735 Market Street, Philadelphia, Pennsylvania J9]03. Z Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Motion.

5 Case KG Doc Filed 02/23/18 Page 3 of 8 28 U.S.C and 1409; and this Court having found that the Debtors' notice of the Motion and opportunity for a hearing on the Motion were appropriate under the circumstances and no other notice need be provided; and this Court having reviewed the Motion and having heard the statements in support of the relief requested therein at a hearing before this Court (the "Hearing"); and this Court having determined that the legal and factual bases set forth in the Motion and at the Hearing establish just cause for the relief granted herein; and upon all of the proceedings had before this Court; and after due deliberation and suff cient cause appearing therefor, it is HEREBY ORDERED THAT: 1. Subject to the Adequate Assurance Procedures for resolving Additional Assurance Requests, the Motion is granted on a final basis as set forth herein. 2. The Adequate Assurance Deposit, together with the Debtors' ability to pay for future utility services in the ordinary course of business subject to the Adequate Assurance Procedures, shall constitute adequate assurance of future payment as required by section 366 of the Bankruptcy Code. 3. Each Utility Company shall be entitled to the funds in the Adequate Assurance Account in the amount set forth for such Utility Company in the column labeled "Proposed Adequate Assurance" on the Utility Services List. 4. If an amount relating to Utility Services provided postpetition by a Utility Company is unpaid, and remains unpaid beyond any applicable grace period, such Utility Company may request a disbursement from the Adequate Assurance Account by giving notice to: (a) proposed counsel to the Debtors, Kirkland &Ellis LLP, 300 North LaSalle Street, Chicago, Illinois 60654, Attn.: Steven N. Sei ajeddini and Kirkland &Ellis LLP, 601 Lexington Avenue, New York, New York 10022, Attn.: Matthew C. Fagen and Ciara Foster; (b) proposed co-counsel to the Debtors, 2

6 Case KG Doc Filed 02/23/18 Page 4 of 8 Pachulslci Stang Ziehl &Jones LLP, 919 North Market Street, 17th Floor, P.O. Box 8705, Wilmington, Delaware (Courier 19801), Attn: Laura Davis Jones; (c) the Office of the United States Trustee for the District of Delaware; (d) counsel to the official committee of unsecured creditors (if any) appointed in these chapter 11 cases; and (e) counsel to the DIP Lenders, Davis Pollc &Wardwell LLP, 450 Lexington Avenue, New York, New Yorlc 10017, Attn: Damian S. Schaible and Aryeh E. Falk, and Morris, Nichols, Arsht & Tunnell LLP, 1201 North Market Street, 16th Floor, P.O. Box 1347, Wilmington, Delaware , Attn: Robert J. Dehney and Andrew R. Remming (collectively, the "Notice Parties"). The Debtors shall honor such request within five business days after the date the request is received by the Debtors, subject to the ability of the Debtors and any such requesting Utility Company to resolve any dispute regarding such request without further order of the Court. To the extent a Utility Company receives a disbut sement from the Adequate Assurance Account, the Debtors shall replenish the Adequate Assurance Account in the amount disbursed. S. The portion of the Adequate Assurance Deposit attributable to each Utility Company shall be returned to the Debtors on the earlier of the reconciliation and payment by the Debtors of the Utility Company's final invoice in accordance with applicable nonbankruptcy law following the Debtors' termination of Utility Services from such Utility Company or the effective date of any chapter 11 plan confirmed in these chapter 1 ] cases. 6. All Utility Companies are prohibited from altering, refusing, or discontinuing services on account of any unpaid prepetition charges, the commencement of these chapter 11 cases, or any perceived inadequacy of the Proposed Adequate Assurance. 7. The following Adequate Assurance Procedures are hereby approved: a. The Debtors will serve a copy of the Motion and this Final Order to each Utility Company in accordance with Local Rule (m)(iv). 3

7 Case KG Doc Filed 02/23/18 Page 5 of 8 b. Subject to paragraphs (c) (e) below, the Debtors will deposit the Adequate Assurance Deposit, in the aggregate amount of approximately ~l million, in the Adequate Assurance Account as soon as practicable after entry of this Final Order. Any Utility Company desiring additional assurances of payment in the form of deposits, prepayments, or otherwise must serve a request for additional assurance (an "Additional Assurance Request") on the Notice Parties. d. Any Additional Assurance Request must (i) be in writing, (ii) identify the location for which the Utility Services are provided, (iii) summarize the Debtors' payment history relevant to the affected account(s), (iv) certify the amount that is equal to two weeks of the Utility Services the Utility Company provides to the Debtot s, calculated as a historical average over the twelve month period ended December 31, 2017, and (v) certify that the Utility Company does not already hold a deposit equal to or greater than two weeks of Utility Services. e. Upon the Debtors receipt of any Additional Assurance Request, the Debtors shall promptly negotiate with such Utility Company to resolve such Utility Company's Additional Assurance Request. f. The Debtors may, in consultation with counsel to the DIP Lenders and without further order from the Court, resolve any Additional Assurance Request by mutual agreement with the relevant Utility Company, and the Debtors may, in connection to any such agreement, provide such Utility Company with additional adequate assurance of payment, including, but not limited to, cash deposits, prepayments, or other forms of security if the Debtors believe that such adequate assurance is reasonable; provided, however, that the Debtors shall maintain a summary record of such agreements, and their respective terms, to be made available, on request, to (i) counsel to the DIP Lenders, (ii) any statutory committee appointed in thse chapter 11 cases, and (iii) the U.S. Trustee. g. If the Debtors and the Utility Company are not able to reach an alternative resolution within 14 days of receipt of the Additional Assurance Request, the Debtors will request a hearing before the Court at the next regularly scheduled omnibus hearing to determine the adequacy of assurances of payment with respect to a particular Utility Company (the "Determination Hearing") pursuant to section 366(c)(3) of the Bankruptcy Code. h. Pending resolution at any such Determination Hearing, the Utility Company filing such Additional Assurance Request shall be prohibited from altering, refusing, or discontinuing Utility Services to the Debtors on account of unpaid charges for prepetition services or on account of any objections to the Proposed Adequate Assurance. 4

8 Case KG Doc Filed 02/23/18 Page 6 of 8 8. The Utility Companies are prohibited from requiring additional adequate assurance of payment other than pursuant to the Adequate Assurance Procedures. 9. Unless a Utility Company files an objection or serves an Additional Assurance Request, such Utility Company shall be: (a) deemed to have received adequate assurance of payment "satisfactory" to such Utility Company in compliance with section 366 ofthe Bankruptcy Code; and (b) forbidden to discontinue, alter, or refuse services to, or discriminate against, the Debtors on account of any unpaid prepetition charges, or require additional assurance of payment other than the Proposed Adequate Assurance. 10. The Debtors are authorized, following the giving of two weeks' notice to the affected Utility Company, where the Debtors have received no objection from any such Utility Company, to add or remove any Utility Company from the Utility Services List, provided that the Debtors shall give notice of any such amendment to counsel to the DIP Lenders, and the Debtors shall add to or subtract from the Adequate Assurance Deposit an amount equal to one half of the Debtors' approximate average monthly -cost for each Utility Company subsequently added or removed, respectively. If an objection -is received, the Debtors shall request a hearing before this Court at the next omnibus hearing date, or such other date that the Debtors and the Utility Company may agree. The Debtors shall not deduct from the Adequate Assurance Deposit the amount set aside for any Utility Company that the Debtors seek to terminate or delete from the Utility Service List unless and until the two week notice period has passed and the Debtors have not received any objection to termination or deletion from such Utility Company, or until any such objection has been resolved consensually or by order of the Court. For Utility Companies that are added to the Utility Services List, the Debtors will cause a copy of this Final Order, including the Adequate Assurance Procedures, to be served on such subsequently added Utility Company. Any

9 Case KG Doc Filed 02/23/18 Page 7 of 8 Utility Company subsequently added to the Utility Services List shall be bound by the Adequate Assurance Procedures. 11. The relief granted herein is for all Utility Companies providing Utility Services to the Debtors and is not limited to those parties or entities listed on the Utility Services List. l2. The Debtors' service of the Motion upon the Utility Services List shall not constitute an admission or concession that any such entity.is a "utility" within the meaning of section 366 of the Bankruptcy Code, and the Debtors reserve all rights and defenses with respect thereto. 13. Notwithstanding the relief granted in this Final Order and any actions taken pursuant to such relief, nothing in this Final Order shall be deemed: (a) an admission as to the validity of any prepetition claim against a Debtor entity; (b) a waiver of the Debtors' or any other party in interest's rights to dispute any prepetition claim on any grounds; (c) a promise or requirement to pay a prepetition claim; (d) an implication or admission that any particular claim is of a type specified or defined in the Motion or any order granting the relief requested by this Motion; (e) a request or authorization to assume any prepetition agreement, contract, or lease pursuant to section 365 of the Bankruptcy Code; or (fl a waiver of the Debtors' or any other party in interest's rights under the Bankruptcy Code or any other applicable law. 14. The banks and financial institutions on which checks were drawn or electronic payment requests made in payment of the prepetition obligations approved herein are authorized to receive, process, honor, and pay all such checks and electronic payment requests when presented for payment, and all such banks and financial institutions are authorized to rely on the Debtors' designation of any particular check or electronic payment request as approved by this Final Order.

10 Case KG Doc Filed 02/23/18 Page 8 of 8 l5. The Debtors are authorized to issue postpetition checks or to effect postpetition fund transfer requests in replacement of any checks or fund tt ansfer requests that are dishonored as a consequence of these chapter 1 l cases with respect to prepetition amounts owed in connection with any payment to the Utility Companies. 16. Notwithstanding anything to the contrary in this Final Order, any payment made, or authorization contained, hereunder, shall be subject to the requirements imposed on the Debtors under any order of this Court approving the debtor in possession financing facility and use of cash collateral (the "DIP Order"). In the event of any inconsistency between the terms of this Final Order and the DIP Order, the terms of the DIP Order shall govern. 17. The contents of the Motion satisfy the requirements of Bankruptcy Rule 6003(b). l 8. Notice ofthe Motion as provided therein shall be deemed good and sufficient notice of such Motion and the requirements of Bankruptcy Rule 6004(a) and the Local Rules are satisfied by such notice Notwithstanding Bankruptcy Rule 6004(h), the terms and conditions of this Final Order are immediately effective and enforceable upon its entry. 20. The Debtors ay e authorized to take all actions necessary to effectuate the relief granted in this Final Order in accordance with the Motion. 21. This Coutt retains exclusive jurisdiction with respect to all matters arising from or related to the implementation, interpretation, and enforcement of this Final Order. Dated:, 2018 Wilmington, Delaware THE HONORABLE KEVIN GROSS UNITED STATES BANKRUPTCY JUDGE 7