Judge Janet E. Bostwick of the U.S. Bankruptcy Court for the District of Massachusetts has approved the motion filed by Blank Label Group, Inc. seeking authority to use Cash Collateral. Objections to the motion by Stephen B. Diamond P.C. and First Republic Bank were overruled.
The Debtor is authorized to use Cash Collateral on an interim basis in accordance with the revised budget filed on August 18. The Debtor is required to maintain an aggregate balance of $84,800 in its operating accounts, consisting of the Debtor-in-Possession account and the account at First Republic Bank, which remains subject to a prepetition hold in the amount of $84,800 on account of Stephen B. Diamond, P.C.’s asserted attachment.
First Republic Bank, West Town Bank, the Small Business Administration, American Express, and Stephen B. Diamond, P.C. have asserted interests in the Cash Collateral. As adequate protection to the Cash Collateral Claimants for the Debtor’s use of Cash Collateral, they are granted replacement liens or interests on the same types of postpetition property of the Debtor’s estate against which Cash Collateral Claimants held liens or interests as of the Petition Date. The Replacement Liens will maintain the same priority, validity and enforceability as the Cash Collateral Claimants’ respective prepetition liens or interests. The Replacement Liens shall be recognized only to the extent of the post-petition diminution in value of the Cash Collateral Claimants’ pre-petition collateral resulting from the Debtor’s use of the Cash Collateral.
A continued hearing on the matter is scheduled for October 7, 2020 at 10:00 a.m.
The Debtor will file and serve a reconciliation of actual income and expenses to the Revised Budget by October 2.
A copy of the order is available at https://bit.ly/3i6T4hw from PacerMonitor.com.
About Blank Label Group
Blank Label Group, Inc. is a clothing retailer that has provided custom clothing in stores and online for the past 12 years. By developing an integrated supply chain and digitization, it has been able to offer custom clothing at a more affordable price point.
On May 26, 2020, Blank Label sought Chapter 11 protection (Bankr. D. Mass. Case No. 20-11201). John T. Morrier, Esq., at CASNER & EDWARDS, LLP, is the Debtor’s counsel. The Debtor was estimated to have $1 million to $10 million in assets and liabilities as of the filing.