United States Of America v. Rocket Ventures II SBIC, L.P.

Filing 44

ORDER MODIFYING STAY OF PROCEEDINGS FOR LIMITED PURPOSE. Signed by Judge Jeffrey S. White on 9/2/10. (jjoS, COURT STAFF) (Filed on 9/2/2010)

United States Of America v. Rocket Ventures II SBIC, L.P.

Doc. 44

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1 Gregory C. Nuti (Bar No. 151754) E-Mail: [e-mail] 2 Joseph J. Orzano (Bar No. 262040) E-Mail: [e-mail] 3 Schnader Harrison Segal & Lewis LLP 4 One Montgomery Street, Suite 2200 San Francisco, CA 94104-5501 5 Telephone: [phone] Facsimile: 415-364-6785 6 Beverley Hazlewood Lewis 7 Trial Attorney, Office of General Counsel 8 U.S. Small Business Administration 409 3rd Street, S.W., Suite 7200 9 Washington, D.C. 20416 Telephone [phone] Facsimile (202) 481- 0468
SCHNADER HARRISON SEGAL & LEWIS LLP ONE MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO, CA 94104-5501 TELEPHONE: [phone]

11 Attorney for United States Small Business Administration 12 in its capacity as Receiver for Rocket Ventures II SBIC, LP 13 UNITED STATES DISTRICT COURT 14 NORTHERN DISTRICT OF CALIFORNIA 15 SAN FRANCISCO DIVISION 16 17 18 19 20 vs. UNITED STATES OF AMERICA, Plaint iff, ORDER MODIFYING STAY OF PROCEEDINGS FOR LIMITED PURPOSE Case No. C08-02240 JSW

21 ROCKET VENTURES II SBIC, LP, 22 23 24 This matter comes before the Court on the motion for an order modifying the stay of Defendant.

25 proceedings for a limited purpose filed by the U. S. Small Business Administration ("SBA") as 26 Receiver ("Receiver") for Rocket Ventures II SBIC, LP ("Rocket SBIC"). After reviewing the 27 pleadings, 28
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IT IS HEREBY ORDERED, 1. The Receiver's Motion to reopen this case and to partially lift the blanket judicial

3 injunction and stay against the commencement of civil legal proceedings of any nature involving 4 Rocket SBIC, for a limited purpose, is GRANTED; and 5 6 THE COURT FINDS THAT: 1. The Receiver is charged with pursuing and preserving all claims and assets of

7 Rocket SBIC. 8 2. The relief proposed by the Receiver in its Motion filed herein is reasonable,

9 necessary and in the best interest of the Rocket SBIC Receivership Estate. 10
SCHNADER HARRISON SEGAL & LEWIS LLP ONE MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO, CA 94104-5501 TELEPHONE: [phone]

3.

The Receiver has by sworn declaration indicated that certain individuals or

11 entities have not fully tendered their full capital contributions to Rocket SBIC or the Rocket 12 SBIC Receivership Estate. Specifically identified are Rocket Ventures II, L.P. ("RVII"), Rocket 13 Ventures II CEO Fund, L.P. ("CEO Fund"), and Rocket Ventures SBIC Partners, LLC ("SBIC 14 Partners") (collectively, "Defendants"). 15 4. Further investigation may reveal potential claims against the limited partners of

16 RVII and CEO Fund ("Class B Limited Partners"). 17 18 IT IS HEREBY ORDERED AND DECREED THAT: 1. The blanket judicial injunction and stay previously imposed in this proceeding by

19 the Court's Stipulation for Consent Order of Receivership filed September 4, 2008 ("Consent 20 Order") is hereby partially lifted for the limited and sole purpose of authorizing the Receiver to 21 commence separate litigation in this Court against the Defendants, and to the extent continuing 22 investigation and discovery provide a basis in the judgment of the Receiver, against the Class B 23 Limited Partners, and to take all steps necessary to collect on the obligation of each Defendant, 24 its assignee or successor, and Class B Limited Partner, its assignee or successor, to pay its 25 unfunded capital commitment, without further prior order of this Court. 26 2. The Receiver is authorized, upon entry of this Order, to file a separate Complaint

27 in the United States District Court for the Northern District of California against any or all of the 28 following, their assignees and successors, and to serve process including but not limited to:
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SCHNADER HARRISON SEGAL & LEWIS LLP ONE MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO, CA 94104-5501 TELEPHONE: [phone]

(a) Rocket Ventures II, L.P. ("RVII"); (b) Rocket Ventures II CEO Fund, L.P. ("CEO Fund"); (c) Rocket Ventures SBIC Partners, LLC ("SBIC Partners"); (d) Other subsequently discovered limited partners or general partners of Rocket SBIC with unfunded capital contributions owed or owing to Rocket SBIC that the Receiver determines upon due diligence and discovery; and (e) Class B Limited Partners, to the extent the continuing investigation and discovery provide a basis in the judgment of the Receiver. The Receiver is authorized to prosecute claims against any Class B Limited Partners by amendment to Complaint against the Defendants without further order of this Court, should the Receiver's continuing investigation and discovery reveal a basis for such claims after a Complaint is filed pursuant to this Order. 3. The Receiver is further authorized to prosecute its causes of action against each of

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14 the Defendants, their assignees or successors in each case, and to the extent continuing 15 investigation and discovery provide a basis in the judgment of the Receiver, against any Class B 16 Limited Partner, in this Court, and to take all steps necessary to collect on the obligation of each 17 Defendant, its assignee or successor, and Class B Limited Partner, its assignee or successor, to 18 pay its unfunded capital commitment to Rocket SBIC, without further prior order of this Court. 19 4. Except as specifically modified herein, the judicial injunction and stay previously

20 imposed in this proceeding remain in full effect. 21 5. This case is now administratively closed. The Receiver may move to re-open the

22 case for appropriate post-judgment relief at a later time. The Clerk shall close the file and 23 terminate any pending matters. 24 6. The Receiver is ordered to serve a copy of this Order on each Claimant at its last

25 known address, via first class mail, postage prepaid, and to file a Certificate of Service with the 26 Clerk of this Court. 27 28 Dated: _________________ September 2, 2010 HONORABLE JEFFREY S. WHITE UNITED STATES DISTRICT JUDGE
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