Jack in the Box Inc. v. Mehta et al

Filing 271

ORDER GRANTING 270 Status Report filed by Jack in the Box Inc. IT IS SO ORDERED. Signed by Judge Edward J. Davila on 12/15/2015. (ecg, COURT STAFF) (Filed on 12/15/2015)

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DATED: 12/15/2015

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LECLAIRRYAN
Robert S. McWhorter (CA 226186)
[e-mail]
Kevin T. Collins (CA 185427)
[e-mail]
980 9th Street, 16th Floor
Sacramento, CA 95814
Telephone: [phone]
Facsimile: 916.449.9694

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Attorneys for Plaintiff
JACK IN THE BOX INC.,
a Delaware corporation, formerly known as Foodmaker, Inc.

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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JACK IN THE BOX INC., a Delaware
corporation, formerly known as Foodmaker,
Inc.,

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Plaintiff,
vs.
DEEPAK MEHTA, an individual; KIRAN
MEHTA, an individual; MEHTA
ENTERPRISES, INC., a suspended California
corporation; DEEPAK ENTERPRISES INC.,
a California corporation,

Case No:

5:13-cv-04444-EJD

FIFTH STATUS REPORT REGARDING
ORDER GRANTING PLAINTIFF’S
MOTION TO AMEND TURNOVER
ORDER AND APPROVE PRIVATE
FORECLOSURE SALE

Defendants.

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JIB’S STATUS REPORT REGARDING ORDER GRANTING
MOTION TO AMEND TURNOVER ORDER AND
APPROVE PRIVATE FORECLOSURE SALE

Case No. 5:13-CV-04444-EJD

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Plaintiff, Jack in the Box Inc., provides this Status Report regarding the Order Granting

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Plaintiff’s Motion to Amend Turnover Order and Approve Private Foreclosure Sale (the

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“Order”)(Docket Item 116). Capitalized terms not otherwise defined herein shall have the

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meaning ascribed to those terms in the Order.

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On May 19, 2014, the Court entered the Order approving and authorizing a private

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foreclosure sale (the “Sale”) of the GECB Collateral by GECB to Plaintiff pursuant to the terms

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of the APA. The APA conditioned the closing of the Sale upon Plaintiff’s satisfactory

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completion of a due diligence review and additionally contemplated a closing on or before

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October 1, 2014. Due to unanticipated developments in this case, Closing has not occurred and

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Plaintiff and GECB have agreed to extend the Outside Date for Closing on more than one

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occasion.

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with the Court.

Plaintiff has notified the Court of such amendments by filing prior Status Reports

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On August 28, 2015, this Court entered its Order vacating all pretrial dates, discovery

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cutoff dates, expert disclosures and trial dates pending the Court’s ruling on Jack in the Box,

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Inc.’s Summary Judgment Motion (Docket No. 266). Pending the Court’s ruling on the

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Summary Judgment Motion, Jack in the Box has not committed the substantial resources

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required to complete both its diligence review and a closing of the Sale. Accordingly, as

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permitted by the APA approved by the Court, Plaintiff and GECB have again agreed to extend

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the Outside Closing Date, as defined in the APA, to January 31, 2016. JIB retains the right to

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terminate the APA until five calendar days prior to Closing. Plaintiff has again agreed to make

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monthly payments, retroactive to August, 2014, to GECB in the amount of $50,000 (the “Interim

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Payments”) until the earlier of July 31, 2015 or the actual Closing. The Interim Payments will

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JIB’S STATUS REPORT REGARDING ORDER GRANTING
MOTION TO AMEND TURNOVER ORDER AND
APPROVE PRIVATE FORECLOSURE SALE
4844-9655-1711.1

Case No. 5:13-CV-04444-EJD

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reduce the principal obligation owing from the Defendants to GECB and will reduce the

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Purchase Price.

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Dated: December 9, 2015

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LECLAIRRYAN
By:

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/s/ Robert S. McWhorter
Robert S. McWhorter

Attorneys for Plaintiff
JACK IN THE BOX INC.

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JIB’S STATUS REPORT REGARDING ORDER GRANTING
MOTION TO AMEND TURNOVER ORDER AND
APPROVE PRIVATE FORECLOSURE SALE
4844-9655-1711.1

Case No. 5:13-CV-04444-EJD