2024-08-12 Statement of Fin. Affairs - Time Ext (Doc 10)Case 24-11647-MFW Doc 10 Filed 08/12/24 Page 1 of 8
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re:
SilverRock Development, LLC., et al.,l
Debtors.
Chapter 11
Case No. 24-11647
(Jointly Administration Requested)
Objection Deadline: TBD
Hearing Date: TBD
MOTION OF DEBTORS FOR ENTRY OF AN ORDER EXTENDING TIME FOR FILING
SCHEDULES OF ASSETS AND LIABILITIES AND
STATEMENT OF FINANCIAL AFFAIRS
The above -captioned debtors and debtors in possession (the "Debtors") hereby move (the
"Motion"), pursuant to sections 105(a) and 521 of title 11 of the United States Code (the
"Bankruptcy Code"); Rules 1007(c) and 9006(b) of Federal Rules of Bankruptcy Procedure
("Bankruptcy Rules"); and Rule 1007-1(b) of the Local Rules of Bankruptcy Practice and
Procedure of the United States Bankruptcy Court for the District of Delaware (the "Local Rules")
for entry of an order, substantially in the form of Exhibit A attached hereto (the "Proposed
Order"), extending the deadline by which the Debtors must file required Schedules and Statements
(as defined below) through and including September 18, 2024. In support of the Motion, the
Debtors rely upon the Declaration of Robert S. Green, Chief Executive Officer of Debtors, in
Support of Chapter 11 Petitions and First Day Pleadings (the "First Day Declaration")
The Debtors in these chapter 11 cases, along with the last four digits of each Debtor's federal tax identification
number, as applicable, are: SilverRock Development Company, LLC (5730), RGC PA 789, LLC (5996),
SilverRock Lifestyle Residences, LLC (0721), SilverRock Lodging, LLC (4493), SilverRock Luxury Residences,
LLC (6598) and SilverRock Phase I, LLC (2247). The location of the Debtors' principal place of business and the
Debtors' mailing address is 343 Fourth Avenue, San Diego, CA 92101.
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.2 In further support of this Motion, the Debtors, by and through their undersigned counsel,
respectfully represent:
I. JURISDICTION AND VENUE
1. This Court has jurisdiction to consider this Motion under 28 U.S.C. §§ 157 and
1334 and the Amended Standing Order of Reference from the United States District Court for the
District of Delaware, dated as of February 29, 2012. This is a core proceeding under 28 U.S.C.
§ 157(b). Under Local Rule 9013-1(f), the Debtors consent to entry of a final order under Article
III of the United States Constitution. Venue of these cases and the Motion in this district is proper
under 28 U.S.C. §§ 1408 and 1409.
2. The statutory predicates for the relief requested herein are Bankruptcy Code
sections 105(a) and 521, Bankruptcy Rules 1007(c) and 9006(b), and Local Rule 1007-1(b).
II. BACKGROUND
3. On August 5, 2024 (the "Petition Date"), each of the Debtors filed a voluntary
petition in this Court commencing a case for relief under chapter 11 of the Bankruptcy Code (the
"Chapter 11 Cases"). The factual background regarding the Debtors, including their business
operations, their capital and debt structures, and the events leading to the filing of the Chapter 11
Cases, is set forth in detail in the First Day Declaration and is fully incorporated herein by
reference.
4. The Debtors continue to manage and operate their business as debtors in possession
pursuant to Bankruptcy Code sections 1107 and 1108. No trustee or examiner has been requested
in the Chapter 11 Cases and no committees have yet been appointed.
2 Capitalized terms used but not defined in this Motion shall have the meanings given to them in the First Day
Declaration.
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III. RELIEF REQUESTED
5. By this Motion, the Debtors seek entry of an order pursuant to Bankruptcy Rule
1007(c), extending the deadline to file their (a) schedules of assets and liabilities, (b) schedules of
executory contracts and unexpired leases, and (c) statements of financial affairs (collectively, the
"Schedules and Statements") by an additional thirty (30) days from the date such Schedules and
Statements are otherwise required to be filed, for a total of forty-two (42) days from the Petition
Date, without prejudice to the Debtors' ability to request additional time to file the Schedules and
Statements should it become necessary.
IV. BASIS FOR RELIEF
6. Bankruptcy Code section 521 and Bankruptcy Rule 1007(c) require a debtor to file,
among other things, its schedules of assets and liabilities, schedules of current income and current
expenditures, and a statement of financial affairs within fourteen days of the petition date.
Bankruptcy Rule 1007(c) also allows an extension "on motion for cause shown."
7. Here, good and sufficient cause exists under Bankruptcy Rule 1007(c) to grant the
Motion due to: (b) the number of creditors; (c) the number of Debtors; and (d) the burden which
would be imposed on the Debtors to file schedules and statements by the current filing deadline of
August 19, 2024.
8. To completely and accurately file Schedules and Statements, the Debtors must
collect, review, and analyze a substantial amount of information. This information is voluminous,
and there are six (6) separate Debtors in these cases, each of whom must fill out their own
Schedules and Statements. Assembling the necessary information will require a significant
expenditure of time and effort on the part of the Debtors, who do not have any direct employees
and rely on a small group of people to maintain their books and records. The magnitude of that
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task, when taken together with the Debtors' transition into chapter 11 and the ongoing burdens of
operating the Debtors' business day to day, supports an extension of the deadline for filing the
Schedules and Statements. Moreover, the relief requested herein will not prejudice or adversely
affect the rights of the Debtors' creditors or other parties in interest. Rather, the extension requested
herein will aid the Debtors' efforts to ensure the accuracy and completeness of the Schedules and
Statements, which in turn will promote efficient administration of these chapter 11 cases.
9. Prior to the Petition Date, the Debtors, their advisors, counsel, and other parties in
interest focused extensively on preparing for the filing and transitioning the business into the
chapter 11 process. The Debtors are working expeditiously to prepare and file their Schedules and
Statements, however, considering the amount of work entailed in completing the Schedules and
Statements and given the size of the Debtors' business and the amount of information required to
adequately prepare such Schedules and Statements, the Debtors respectfully submit that cause
exists to extend the deadlines to complete the Schedules and Statements, without prejudice to the
Debtors' right to request further extensions, for cause shown.
V. NOTICE
10. Notice of this Motion will be provided to: (a) the office of the U.S. Trustee for the
District of Delaware; (b) the holders of the thirty (20) largest unsecured claims on a consolidated
basis against the Debtors; (c) the Debtor's secured creditors; (d) the Internal Revenue Service, and;
(e) all parties entitled to notice pursuant to Bankruptcy Rule 2002.
11. The Debtors respectfully submit that such notice is sufficient and that no further
notice of this Motion is required.
VI. NO PRIOR REQUEST
12. No previous request for the relief sought herein has been made to this Court or any
other court.
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WHEREFORE, the Debtors respectfully request that the Court enter the Proposed Order,
substantially in the form attached as Exhibit A, granting the relief requested in the Motion and
such other and further relief as may be just and proper.
Dated: August 12, 2024
Wilmington, Delaware
Respectfully submitted,
ARMSTRONG TEASDALE, LLP
/s/Jonathan M. Stemerman
Jonathan M. Stemerman (No. 4510)
Eric M. Sutty (No. 4007)
Denissee Gueavara (No. 7206)
1007 North Market Street, Third Floor
Wilmington, Delaware 19801
Telephone: (302) 416-9670
jsttemerman@atlIp.com
esutty@atllp.com
dguevara@atllp.com
- and-
Victor A. Vilaplana (Pro Hac Vice Pending)
P.O. Box 9038
La Jolla, CA 92037
Telephone: (619) 840-4130
vavilaplana@gmail.com
- and-
Benjamin M. Carson (Pro Hac Vice Pending)
5965 Village Way STE E105
San Diego, CA 92130
Telephone: (858) 255-4529
ben@benjamincarson.com
Proposed Counsel to the Debtors and
Debtors in Possession
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Exhibit A
Proposed Order
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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re:
SilverRock Development Company, LLC et
al.,l
Debtors.
Chapter 11
Case No. 24-11647
(Joint Administration Requested)
Re: Docket No.
ORDER EXTENDING TIME FOR FILING SCHEDULES OF ASSETS AND LIABILITIES
AND STATEMENT OF FINANCIAL AFFAIRS
Upon the motion (the "Motion")2 of the Debtors for an order, under Bankruptcy Rule
1007(c), extending the deadline by which the Debtors must file their Schedules and Statements by
fourteen days, which is a total of forty-two days from the Petition Date; and the Court having
reviewed the Motion; and the Court having determined that the relief requested in the Motion is in
the best interests of the Debtors, their estates, their creditors and other parties in interest; and the
Court having jurisdiction to consider the Motion and the relief requested therein in accordance
with 28 U.S.C. §§ 157 and 1334 and the Amended Standing Order of Reference from the United
States District Court for the District of Delaware, dated as of February 29, 2012; and it appearing
that proper and adequate notice of the Motion has been given and that no other or further notice is
necessary; and upon the record herein; and after due deliberation thereon; and good and sufficient
cause appearing therefor, it is hereby
1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor's federal tax identification
number, as applicable, are: SilverRock Development Company, LLC (5730), RGC PA 789, LLC (5996),
SilverRock Lifestyle Residences, LLC (0721), SilverRock Lodging, LLC (4493), SilverRock Luxury Residences,
LLC (6598) and SilverRock Phase I, LLC (2247). The location of the Debtors' principal place of business and the
Debtors' mailing address is 343 Fourth Avenue, San Diego, CA 92101.
2 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Motion.
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ORDERED, ADJUDGED AND DECREED THAT:
1. The Motion is GRANTED, as set forth herein.
2. The time by which the Debtors must file their Schedules and Statements shall be
and hereby is extended through and including September 18, 2024, without prejudice to the
Debtors' right to seek additional extensions upon notice and a hearing.
3. This Court shall retain jurisdiction with respect to all matters arising from or related
to the implementation and/or interpretation of this Order.
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