Patriarch Partners Agency Services, LLC v. Zohar CDO 2003-1, Ltd. et al

Filing 222

ORDER re: 220 Letter, filed by Alvarez & Marsal Zohar Management, LLC, Alvarez & Marsal Zohar Agency Services, LLC. Accordingly, the Court requests that the parties provide their position on whether the automatic stay should be lifted pur suant to 11 U.S.C. § 362(c)(1) in light of the Liquidation Plan. Submissions are due Wednesday, September 21, 2022. If all parties agree that the stay should be lifted, the parties shall file a joint letter by Wednesday, September 21, 2022, stating that position. SO ORDERED. (Signed by Magistrate Judge Katharine H. Parker on 8/24/2022) (kv)

Case 1:16-cv-04488-VM-KHP Document 222 Filed 08/24/22 Page 1 of 2

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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PATRIARCH PARTNERS AGENCY SERVICES, LLC,

8/24/2022

Plaintiff,
-against-

ORDER
16-CV-04488 (VM) (KHP)

ZOHAR CDO 2003-1, LTD. et al.,
Defendants.
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KATHARINE H. PARKER, UNITED STATES MAGISTRATE JUDGE.

On March 11, 2018, Defendants Zohar III, Corp.; Zohar II 2005-1, Corp.; Zohar CDO 20031, Corp.; Zohar III, Limited; Zohar II 2005-1, Limited; and Zohar CDO 2003-1, Limited filed
petitions for relief under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 1011532 in the United States Bankruptcy Court for the District of Delaware. (See ECF No. 202.)
Pursuant to Section 362 of the Bankruptcy Code, the filing of the Chapter 11 Petitions resulted
in an automatic stay of this action. See 11 U.S.C. § 362(a).
On August 2, 2022, a Liquidation Plan went into effect in the Bankruptcy action pursuant
to which the Zohar Debtors’ Litigation Assets were transferred to two Litigation Trusts that
“shall be deemed substituted for the applicable Debtor . . . with respect to any Causes of Action
pending before the Bankruptcy Court or any other court.” (See ECF No. 220.)
On August 23, 2022, the parties submitted a status letter informing the Court that the
parties conferred regarding the status of this action in light of the Liquidation Plan, but disagree
as to the path forward. Specifically, the Zohar-aligned entities proposed stipulating to, or
moving for, dismissal of certain parties, and moving to transfer remaining claims to the
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Case 1:16-cv-04488-VM-KHP Document 222 Filed 08/24/22 Page 2 of 2

bankruptcy court, and Patriarch Partners Agency Services stated that it will respond to the
Zohar entities’ purported arguments for dismissal and transfer at the appropriate time.
Although the parties’ status letter appears to contemplate moving forward with this action,
neither party stated its position regarding whether the automatic stay should be lifted pursuant
to 11 U.S.C. § 362(c)(1).
Accordingly, the Court requests that the parties provide their position on whether the
automatic stay should be lifted pursuant to 11 U.S.C. § 362(c)(1) in light of the Liquidation Plan.
Submissions are due Wednesday, September 21, 2022.
If all parties agree that the stay should be lifted, the parties shall file a joint letter by
Wednesday, September 21, 2022, stating that position.
SO ORDERED.
Dated: August 24, 2022
New York, New York
______________________________
KATHARINE H. PARKER
United States Magistrate Judge

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