Alright good good afternoon. This is judge Lopez
today is November 12 I'm going to call the 1
p .m. Case fossil UK global services LTD The
one in the courtroom if parties wish to make
an appearance why don't you hit five star and
I will unmute your line Here's a 202 number.
Good afternoon. A 646 number. Good afternoon,
Your Honor. Jessica Lou from Long Island Manchus
appearing on behalf of a foreign representative
in the foreign government. Good afternoon. Anyone
else wish to make an appearance? Please hit five
star and I will unmute your line. Okay. Ms. Liu,
I'll turn it back over to you. Sure. Thank you,
Your Honor. We are here today on the petition
for recognition of Fossil Heat K Global Services
Limited foreign debtors, in which proceeding
under Part 26A of the Companies Act, as a foreign
name proceeding, recognition of Mr. Grebin as
foreign representative. The verified petition
was filed on October 21st on the docket at ECF
Number 6. Before we turn to my very brief presentation
today, I want to note that there are two individuals
who are on the line today. We have Mr. Randy
Brevin, the chief financial officer of the foreign
debtor and the foreign representative on the
line, and Ms. Gemma Sage, a partner in one of
the offices. As Your Honor would have seen in
support of the foreign debtor's petition, we
respectfully submit the declaration of the foreign
representative, Mr. Randy Brevin, which was filed
on the docket at ECF number seven. as well as
the declaration and supplemental declaration
of Ms. Gemma Sage, which was filed on the docket
at ECF numbers eight and 29 respectfully. Ms.
Sage and Mr. Brevin, as noted, are both in the
virtual courtroom today and available for any
questions they're on and they have, or any type
of information she don't anticipate. And subject
to that, we respectfully move to enter these
declarations into evidence. Okay. Objection to
the entry of these declarations for purposes
of today's hearing Okay, you're admitted More
documents on the foreign representatives amended
witness and exhibit list and evidence Specifically
exhibit 15 which is the retail advocate report
that was filed in the UK proceeding submitted
in the UK proceeding An exhibit 18, which is
the sanction order that was entered by the English
court in the UK proceeding. Both of these items,
as I mentioned before, are documented in the
UK proceeding, and we believe that for the completeness
of the record and the convenience of the court,
it would be helpful to have both of these items
included in there. Okay. They're admitted. Great.
Thank you, Your Honor. Before we turn to the
relief request today, I do want to make a couple
of brief remarks since we have not previously
appeared before you on this matter. The foreign
debtor in this Chapter 15 case is only one of
65 entities within the global business known
as Fossil. Fossil, as you may know, is an iconic
brand, probably best known for their watches
and accessories that they design and sell around
the world. Their products are sold across 130
countries and they employ 4 ,500 employees. As
we noted in our paper, fossil waste and many
other companies in the retail sector have experienced
increased competition, greater headwinds and
uncertainty in their business, leading to financial
challenges. To address these challenges, the
company implemented several initiatives, but
also determined that a surgical restructuring
of its unsecured notes through a UK restructuring
proceeding, which our paper described in greater
detail, and we do not need to repeat here, was
appropriate. And we're pleased to report that
as of this past Monday, the UK proceeding was
successful. And as noted in the supplemental
stage declaration at ECF 29, exhibit 16, the
UK restructuring plan received overwhelming support
with over 99 .99 percent by value of the plan
creditors who voted voting in favor of the restructuring
plan. Accordingly, the English court on Monday,
November 10th, entered an order sanctioning the
restructuring plan and a copy of that sanction
order was filed on the back at ECF 30, case exhibit
18. I hope, Your Honor, that before we jump into
the relief, that I make my goal here today is
to make this the easiest decision we have to
make today. In reliance on our papers, as I'll
note, we are with the relief proceeding involved
in three general categories. One, that the court
recognized the UK proceeding as a foreign name
proceeding under Chapter 15 of the U .S. bankruptcy
code. two, recognize Mr. Dredden as the betters
duly appointed foreign representative, and three,
entry of this order, the Chapter 15 order, given
full force and effect to the sanction order entered
by the English court and approving the restructuring
plan within and its application within the territorial
jurisdiction of the threat. I think our paper
set forth fairly clearly why we believe we have
satisfied the requirements of Section 1515 of
bankruptcy code. The U .K. proceeding is a foreign
proceeding as required under Section 1517A. The
U .K. proceeding was a court -supervised proceeding
in the U .K. related to the adjustment of debt.
We're all effective plan creditors if you've
noticed, and we're afforded opportunity to participate.
Further, the U .K. proceeding is a foreign main
proceeding under Section 1615 of the bankruptcy
code. The foreign debtor center and main interest
is in the U .K. It is incorporated in England.
Its headquarters and registered office is in
the U .K. and is governed by English law. And
there is no evidence submitted to the contrary
towards that presumption. As for Mr. Grebin,
in addition to being duly appointed by the Board
of the Foreign Veterans to act as a foreign representative,
he was duly appointed by the English court to
be the foreign representative, pursuant to the
convening order, which is at ECF H, Exhibit E.
It's an exhibit to the stage declaration. And
it's exhibit four, and I'm witnessing it. Lastly,
in the interest of comedy, we ask that this court
give full force and effect to the sanction order
and the approved restructuring plan for the reasons
laid out in our paper. We believe that no party
has appeared to make a formal or informal objection
to the verified petitions here today. We recognize
that the court received a letter. prepared by
Mr. Craig Stofer. Our understanding having reached
out to him and had discussions with him is that
he actually sold out of his unsecured notes interest
and no longer plans to make an appearance at
this proceeding. And effectively our view is
that he has no standing to make an objection
to the verified petition and the relief requested.
And so we ask your honor that for the reasons
laid out in our paper. that you either determine
that his objections are in our mood and he has
no standing to raise them, or if you are inclined
to treat them as an objection, that you overrule
them on the reasons that court can make them.
One last point I want to make is that the hope
and the expectation for the company and the foreign
debtor is that the restructuring transactions
go effective tomorrow. We expect and hope that
the old notes will be cancelled, new notes issued,
and the other securities be issued to the relevant
security orders. The cancellation of the notes
are conditioned upon receipt of an entered Chapter
15 order today. And the UK process, including
the sanction order, requires that the old notes
be cancelled in order to get an effective date
under the restructuring plan. And in order to
do that, we first need to obtain the Chapter
15 order that will allow us to cancel it. And
so we respectfully request that the court approve
the section, approve the Chapter 15 order and
enter it today so that we may facilitate moving
forward with the transactions contemplated no
later than tomorrow. I'll pause there and see
if Gerona has any questions. I have no questions.
I'll just see if anyone wishes to be heard. Okay.
Okay. Thank you. I'll then note that this Chapter
15 case was filed on October 20th. of this year
On October 21st. There was a notice of a verified
petition There were various declarations And
an emergency motion was filed on that day seeking
a scheduling order I entered that scheduling
order on October 23rd, which Provided notice
of the recognition hearing So I'm going to find
that there's been proper, and I'm reviewing the
certificate of services here. I note that there's
been proper notice and service of the hearing
today. The court has considered the relief requested
here and considered the declarations that have
been filed in support in the record before it.
Do note that there was a letter from Craig Stover
that was filed on November 7th of 2025 Indicating
opposition to the relief requested and asking
me to consider it Just a little earlier today
a November 10th We were my case manager received
an email from mr. Stover, and I put it on the
docket. I didn't want anyone to be and he indicated
That he had sent the letter to me with his comments
on the upcoming chapter 15 And he said his his
wife and him were investors in the notes But
as a follow -up he wanted me And my case manager
to know that his wife and I sold all their notes
as you indicated. It's just I'm just putting
an email confirmation He confirmed that he was
no longer an investor and would not be attending
the hearing so Just wanted to I put that email
on the docket obviously we received it and whenever
I receive communications I think I feel more
comfortable with just knowing but it confirmed
everything that you just said and so I just Wanted
the parties to know that that filed out on the
docket shortly before the hearing at docket number
37 that Email changed everything today I'm gonna
Recognize this Proceeding I'm going to find that
I have bank jurisdiction over 1334 This is a
court proceeding under 28 USC 157 B There's been
proper notice of the scheduling of this recognition
hearing and There are no objections, this is
really fully consensual and so Everyone in the
US Wants it And there are no objections, so I'll
recognize it I'll note that the chapter 15 was
properly commenced under 1504 1509 and 1515 that
the foreign debtors eligible to be a debtor under
sections 109 and 1501 of the code and I'll recognize
the UK proceeding as a foreign proceeding and
Just Note that the foreign representative was
satisfied the requirements of section 15 15 of
the code And I'm going to recognize the UK proceeding
under section 15 17 of the bankruptcy code And
I'll recognize it as the foreign debtor having
its Center of Main Interests under 1517 be one
of the code. And that the UK proceeding is a
foreign main proceeding as well. And I find that
the foreign representative would be entitled
to the relief requested under 1507, 1520, and
1521 of the Bankruptcy Code. And I'll enter.
I'll enter the order approving the relief requested.
And I'll sign the order and get it on the docket.
I think I would just ask that no one find anything
that I do as precedent here. I will grant the
relief request that it technically satisfies
the requirements of the code. And I'll sign the
order. So, Ms. Liu, there's a proposed order
at, I think it was a revised proposed order at
32. Is that the one that folks still want me
to sign? Yes, that's correct. You got it. I don't
think there's any attachments. I will get this
signed and it'll hit the docket shortly. Ms.
Liu, is there anything else we need to take care
of today? No, there is not and we're grateful
your honor for the entry of the water. All right.
Thank you very much. You'll have a good day