Case 15-31086 Document 87 Filed in TXSB on 03/10/15 Page 1 of 7 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION IN RE: UNIVERSITY GENERAL HEALTH SYSTEM, INC., et al., Debtors. 1 Chapter 11 Case No. 15-31086 Jointly Administered DEBTORS EXPEDITED MOTION FOR ENTRY OF ORDER (I) AUTHORIZING THE DEBTORS TO (A) FILE A CONSOLIDATED LIST OF CREDITORS AND A CONSOLIDATED LIST OF THE DEBTORS FORTY LARGEST UNSECURED CREDITORS; AND (B) PROVIDE NOTICES, INCLUDING NOTICES OF COMMENCEMENT OF CASES AND SECTION 341 MEETING; AND (II) EXTENDING TIME TO FILE SCHEDULES OF ASSETS AND LIABILITIES, STATEMENTS OF FINANCIAL AFFAIRS AND LIST OF EQUITY SECURITY HOLDERS THE DEBTORS REQUEST A HEARING BE CONDUCTED ON THIS MATTER ON MARCH 23, 2015 AT 1:00 P.M. IN COURTROOM 401, 515 RUSK AVENUE, 4 TH FLOOR, HOUSTON, TEXAS. IF YOU OBJECT TO THE RELIEF REQUESTED, YOU MUST RESPOND IN WRITING, SPECIFICALLY ANSWERING EACH PARAGRAPH OF THIS PLEADING, UNLESS OTHERWISE DIRECTED BY THE COURT, YOU MUST FILE YOUR RESPONSE WITH THE CLERK OF THE BANKRUPTCY WITHIN TWENTY-THREE DAYS FROM THE DATE YOU WERE SERVED WITH THIS PLEADING. YOU MUST SERVE A COPY OF YOUR RESPONSE ON THE PERSON WHO SENT YOU THE NOTICE; OTHERWISE THE COURT MAY TREAT THE PLEADING AS UNOPPOSED AND GRANT THE RELIEF REQUESTED. EXPEDITED RELIEF HAS BEEN REQUESTED. IF THE COURT CONSIDERS THE MOTION ON AN EXPEDITED BASIS, THEN YOU WILL HAVE LESS THAN 23 DAYS TO ANSWER. IF YOU OBJECT TO THE REQUESTED RELIEF OR IF YOU BELIEVE THAT THE EXPEDITED CONSIDERATION IS NOT WARRANTED, YOU SHOULD FILE AN IMMEDIATE RESPONSE. REPRESENTED PARTIES SHOULD ACT THROUGH THEIR ATTORNEY. To the Honorable Letitia Z. Paul, United States Bankruptcy Judge: 1 The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: University General Health System, Inc. (7964), UGHS Autimis Billing, Inc. (3352), UGHS Autimis Coding, Inc. (3425), UGHS ER Services, Inc. (6646), UGHS Hospitals, Inc. (3583), UGHS Management Services, Inc. (4100), UGHS Support Services, Inc. (3511), University General Hospital, LP (7964), and University Hospital Systems, LLP (3778).
Case 15-31086 Document 87 Filed in TXSB on 03/10/15 Page 2 of 7 University General Health System, Inc., et al. (the Debtors ), debtors and debtors-inpossession in the above-captioned cases, files this Motion for Entry of Order (i) Authorizing the Debtors to (a) file a Consolidated List of Creditors and a Consolidated List of the Debtors Forty Largest Unsecured Creditors; and (b) Provide Notices, Including Notices of Commencement of Cases and Section 341 Meeting and (ii) Extending Time to File Schedules of Assets and Liabilities, Statements of Financial Affairs and List of Equity Security Holders. Summary of the Motion The Debtors request that the Court enter an order: (i) authorizing the Debtors to file a consolidated list of creditors and a consolidated list of the Debtors 40 Largest Unsecured Creditors; (ii) authorizing the Debtors (or their agents) to complete all mailings of notices, including notices of the commencement of these cases and of the meeting of creditors pursuant to section 341 of the Bankruptcy Code; and (iii) extending the deadline for the filing of the Debtors Schedules of Assets and Liabilities, Statements of Financial Affairs and List of Equity Security Holders, pursuant to Federal Rule of Bankruptcy Procedure 1007(a)(5), to April 27, 2015. Brief Background 1. The Debtors filed these chapter 11 cases on an emergency basis on Friday, February 27, 2015. 2 2. The Debtors continue to operate their businesses and manage their properties as debtors-in-possession pursuant to 1107 and 1108 of the Bankruptcy Code. No trustee, examiner, or creditors committee has been appointed in the Debtors cases. 2 For a detailed description of the Debtors businesses, the Debtors capital structure and the events leading up to these cases, see the Declaration of Edward T. Laborde, Jr. in Support of Chapter 11 Petitions and First Day Pleadings [Docket No. 2].
Case 15-31086 Document 87 Filed in TXSB on 03/10/15 Page 3 of 7 Relief Requested A. REQUEST FOR AUTHORITY TO FILE CONSOLIDATED LIST OF CREDITORS 3. The Debtors have identified several thousand persons or entities to which notice of certain proceedings in these chapter 11 cases must be provided. The Debtors anticipate that such notices will comprise, without limitation, notice of: (a) the filing of the Debtors voluntary petitions under chapter 11 of the Bankruptcy Code; (b) the initial meeting of the Debtors creditors in accordance with section 341 of the Bankruptcy Code; (c) applicable bar dates for the filing of claims; (d) the hearing on adequacy of a disclosure statement in respect of a plan of reorganization; and (e) the hearing to confirm a plan of reorganization (collectively, the Notices ). 4. Federal Rule of Bankruptcy Procedure 1007 (a)(1) (the Bankruptcy Rules ) provides that in a voluntary chapter 11 case, the debtor must file with the petition a list containing the name and address of each entity included or to be included on Schedules D, E, F, G and H as prescribed by the Official Forms. 5. The Debtors presently maintain various computerized lists of the names and addresses of their respective creditors that are entitled to receive the Notices and other documents in these cases. The Debtors believe that the information, as maintained in computer files (or those of their agents), may be consolidated and utilized efficiently to provide interested parties with the Notices and other similar documents. Accordingly, by this Motion, the Debtors seek authority to file the lists on a consolidated basis, identifying their creditors and equity security holders in the format or formats currently maintained in the ordinary course of the Debtors businesses. 6. Concurrently with this Motion, the Debtors filed an application (the Upshot Application ) seeking retention of Upshot Services LLC ( Upshot ) as claims, noticing and
Case 15-31086 Document 87 Filed in TXSB on 03/10/15 Page 4 of 7 balloting agent in these chapter 11 cases. If the Upshot Application is granted, Upshot will, among other things, (a) assist with the consolidation of the Debtors computer records into a creditor and equity security holder database and (b) complete the mailing of the Notices to the parties in these databases. After consultation with Upshot, the Debtors believe that filing the lists in the format or formats currently maintained in the ordinary course of business will be sufficient to permit Upshot to notice promptly all applicable parties as required by the Bankruptcy Rules. B. REQUEST FOR AUTHORITY TO FILE CONSOLIDATED LIST OF TOP FORTY (40) UNSECURED CREDITORS 7. Pursuant to Rule 1007(d) of the Bankruptcy Rules, a chapter 11 debtor must file with its voluntary petition a list setting forth the names, addresses, and claim amounts of the creditors, excluding insiders, that hold the twenty (20) largest unsecured claims in the debtor s case (a Top 20 List ). This Top 20 List is primarily used by the Office of the United States Trustee (the U.S. Trustee ) to evaluate the types and amounts of unsecured claims against the debtor and thus identify potential candidates to serve on an official committee of unsecured creditors appointed in the debtor s case pursuant to section 1102 of the Bankruptcy Code. 8. The Debtors believe that the submission of single consolidated list of their combined forty (40) largest unsecured creditors in these cases would be more reflective of the body of unsecured creditors that have the greatest stake in these cases. Therefore, the Debtors respectfully request authorization to file a single consolidated list of their forty (40) largest unsecured creditors in these cases (the Consolidated Top 40 List ). 3 C. MAILINGS 9. In lieu of effecting service through the Office of the Clerk of this Court, the Debtors also request that they (or Upshot) be approved and authorized to complete all mailings 3 The Debtors filed their Consolidated Top 40 List with the Court on March 4, 2015 [Docket No. 53].
Case 15-31086 Document 87 Filed in TXSB on 03/10/15 Page 5 of 7 to creditors and equity holders in these cases, including notice of the commencement of these cases and notice of the meeting of creditors pursuant to section 341 of the Bankruptcy Code. 10. Allowing the Debtors (or Upshot) to complete their own mailings will save significate time, cost and expense. D. EXTENSION OF TIME TO FILE SCHEDULES, STATEMENTS OF FINANCIAL AFFAIRS AND LIST OF EQUITY HOLDERS 11. Pursuant to Rule 1007(c) of the Federal Rules of Bankruptcy Procedure, a chapter 11 debtor must file with the petition, or within 14 days thereafter, schedules of assets and liabilities, a statement of financial affairs (collectively, the Schedules and SOFA ) and a list of the debtor s equity security holders of each class showing the number and kind of interests registered in the name of each holder and the last known address or place of business of each holder (the Equity Holders List ). The 14-day deadline may be extended for cause. FED. R. BANKR. P. 1007(c). 12. The deadline for filing the Schedules and SOFA and the Equity Holders List in these chapter 11 cases is currently March 13, 2015. The Debtors seek an extension of such deadline to April 27, 2015. 13. The Court may extend the time for filing the Equity Holders List and the Schedules and SOFA for cause shown. Cause exists to grant the requested extension. The Debtors have requested the information necessary to complete the Equity Holders List from their transfer agent, but have been advised that the information will not be received by the March 13, 2015 deadline. Additionally, assembling and compiling the information required for the Schedules and SOFA is a time-consuming task that requires accurate information. Given the substantial burdens already imposed on the Debtors management by the urgent commencement of these chapter 11 cases, the limited number of employees available to collect the information, the competing demands upon such employees and the time and attention that the Debtors must
Case 15-31086 Document 87 Filed in TXSB on 03/10/15 Page 6 of 7 devote to stabilizing their business and transitioning to chapter 11, the Debtors will be unable to complete their Schedules and SOFA by the current deadline imposed by the Bankruptcy Rules. The requested extension will enhance the accuracy of the Debtors Schedules and SOFA and avoid the necessity of substantial subsequent amendments. 14. The Debtors believe that no creditor, or other party in interest, will be prejudiced by the extension of time requested herein. As of the filing of this Motion, the 341 meeting of creditors has not been scheduled. EXPEDITED CONSIDERATION 15. The Debtors seek expedited consideration of the Motion. As stated above, the current deadline for the Debtors to file Schedules and SOFA is March 13, 2015. Additionally, the Debtors continue to file motions in this case and it is important to clarify Upshot s authorization to complete all mailings and notices. Therefore, expedited consideration is warranted. Accordingly, the Debtors request that the Court enter an order (i) authorizing the Debtors to file a consolidated list of creditors and a consolidated list of the Debtors 40 Largest Unsecured Creditors; (ii) authorizing the Debtors (or their agents) to complete all mailings of notices, including notices of the commencement of these cases and of the meeting of creditors pursuant to section 341 of the Bankruptcy Code; (iii) extending the deadline for the filing of the Debtors Schedules of Assets and Liabilities, Statements of Financial Affairs and List of Equity Security Holders, pursuant to Federal Rule of Bankruptcy Procedure 1007(a)(5), to April 27, 2015, and (iv) granting such other and further relief as the Court may deem proper, both at law and in equity.
Case 15-31086 Document 87 Filed in TXSB on 03/10/15 Page 7 of 7 Dated: March 10, 2015. Respectfully submitted by: PORTER HEDGES, LLP /s/ Joshua W. Wolfshohl John F. Higgins State Bar No. 09597500 Joshua W. Wolfshohl State Bar No. 24038592 Aaron J. Power State Bar No. 24058058 1000 Main Street, 36th Floor Houston, Texas 77002 Telephone: (713) 226-6000 Facsimile: (713) 226-6248 Proposed Counsel for Debtors and Debtors in Possession
Case 15-31086 Document 87-1 Filed in TXSB on 03/10/15 Page 1 of 2 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION IN RE: UNIVERSITY GENERAL HEALTH SYSTEM, INC., et al., Debtors. 14 Chapter 11 Case No. 15-31086 Jointly Administered ORDER GRANTING DEBTORS MOTION FOR ENTRY OF ORDER (I) AUTHORIZING THE DEBTORS TO (A) FILE A CONSOLIDATED LIST OF CREDITORS AND A CONSOLIDATED LIST OF THE DEBTORS FORTY LARGEST UNSECURED CREDITORS; AND (B) PROVIDE NOTICES, INCLUDING NOTICES OF COMMENCEMENT OF CASES AND SECTION 341 MEETING; AND (II) EXTENDING TIME TO FILE SCHEDULES OF ASSETS AND LIABILITIES, STATEMENTS OF FINANCIAL AFFAIRS AND LIST OF EQUITY SECURITY HOLDERS [Relates to Docket No. ] The Court has considered the Motion for Entry of Order (i) Authorizing the Debtors to (a) file a Consolidated List of Creditors and a Consolidated List of the Debtors Forty Largest Unsecured Creditors; and (b) Provide Notices, Including Notices of Commencement of Cases and Section 341 Meeting and (ii) Extending Time to File Schedules of Assets and Liabilities, Statements of Financial Affairs and List of Equity Security Holders (the Motion ) filed by University General Health System, Inc., et al. (the Debtors ). The Court finds that cause exists to grant the Motion. Accordingly, it is therefore ORDERED THAT: 1. The Motion is GRANTED. 2. The Debtors are authorized to file a consolidated list of creditors and a consolidated list of their forty (40) largest unsecured creditors in these cases. 1 The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: University General Health System, Inc. (7964), UGHS Autimis Billing, Inc. (3352), UGHS Autimis Coding, Inc. (3425), UGHS ER Services, Inc. (6646), UGHS Hospitals, Inc. (3583), UGHS Management Services, Inc. (4100), UGHS Support Services, Inc. (3511), University General Hospital, LP (7964), and University Hospital Systems, LLP (3778).
Case 15-31086 Document 87-1 Filed in TXSB on 03/10/15 Page 2 of 2 3. That the Debtors (or their agents) shall be, and hereby are, authorized to complete all mailings in these cases which are required under the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure and the Local Rules of this Court. 4. The deadline by which the Debtors must file their List of Equity Security Holders, Schedules of Assets and Liabilities and Statement of Financial Affairs is extended to April 27, 2015. SIGNED this day of, 2015. THE HONORABLE LETITIA Z. PAUL, UNITED STATES BANKRUPTCY JUDGE