All right, good afternoon. It is 4 o 'clock on
Wednesday, January 14, 2026. We're here for the
first day hearings and case number 26 -90103,
Sachs Global Enterprises, LLC. So if we get appearances
of counsel first and then to the extent anyone
wants to talk, please hit five star one time.
Good afternoon, Your Honor. Jennifer Hardy of
Wilkie Farr and Gallagher proposed co -counsel
to the SAC's global gutters. The rest of the
Wilkie team, including my partner Debra Sinclair,
are in a conference room and have all made appearances
electronically. All right. Thank you. Yes. I'm
glad you reminded me. Please make sure to make
your appearances electronically. That's how we
keep track of, uh, of appearances. Good afternoon,
Your Honor. Jared Martin, Broadway, and both
Cummings for the SO5 Digital Betters. Also joining
me are Michael Reardon and James Bailey. Um,
Andrew Heade, Chief Restructuring Officer, is
also on the line. Okay. Thank you. So we have
maxed out on the go to meeting at 251 but you
can still get on the on the phone line and if
you're not on the go to meeting because you joined
a little bit after we maxed out just make sure
to make your appearance on on the audio version
Let's take further appearances, please. Good
afternoon, Your Honor. Proposed co -counsel for
the tax global debtors. I'm joined in our virtual
courtroom by several of my colleagues, including
Mr. David Troush, who will be speaking later
in the hearing. All right. Thank you. Good afternoon,
Your Honor. Sorry, Your Honor. Debra Sinclair,
Wilkie Bar and Gallagher also present. Global
Enterprises, LLC, and its debtor affiliates.
I'll make appearances on behalf of my colleagues
in the room if that's okay because I expect that
some or all of them will be appearing before
you at one point or another today. With me in
the conference room here are my colleagues Robin
Spiegel, Todd Gorin, Allison Smith, Christopher
DiPompeo, Stuart Lombardi, Jessica Graver, and
Zachary Charlton. I'd also like to introduce
Mark Weinstein, Chief Restructuring Officer of
the Debtors from Berkeley Research Group. as
well as Steve Zellent and Jamie Baird of PJT
Partners. Well, Mr. Weinsen and Mr. Baird are
also in the room with me here. All right. Good
afternoon, Your Honor. Toby Gerber on behalf
of Bank of America, the AVL agent with me on
the phone, our co -counsel Daniel Fiorello and
David Castleman from Otterburg, and also hearing
Gregory Ginther. Marjorie Crider and Matthew
Furlong from Morgan Lewis and Bacchus. I believe
Mr. Fiorello and Castleman may be speaking later
on. All right. Thank you, sir. Thank you. Good
afternoon, your honor. Nathan Elmer with City
Austin LLP on behalf of Exotic Co -Invest 2 LP
in Sierra Leone. I'm joined in the virtual courtroom
by Ms. Amine Bori and Jean Ducatier from our
firm. Each of them have pro -hoc motions pending
before your honor. They were filed very shortly
before this day. And I'd also just like to note
that we filed an objection to this motion as
document number 120, also shortly before this
hearing, in mid -40, the point person for today's
hearing. I can't find that objection. Thank you.
All right. Thank you. Yes, we had many pro -hocs.
We tried to get them all entered before, but
to the extent they haven't been entered, you're
authorized to speak. Thank you. Good afternoon,
Your Honor. Can you hear me? Yes. Good afternoon,
Your Honor. John Higgins, Shane Johnson from
Porter and Hedges. I'm appearing today on behalf
of the ad hoc group of secured note holders.
Also appearing with us today are the Paul Weiss
team, and I can see Bob Britton on camera. I
see Mr. Britton as well. Good afternoon, Your
Honor. Caroline Reckler. Caroline Reckler on
behalf of Amazon. I'm here in the virtual courtroom
with my partner, Chris Harris. As Your Honor
has seen, we filed a motion to adjourn the dip
and cash management motions very briefly. I saw
that. Yes. Mr. Britton, go ahead and make your
appearance. Have I unmuted you? Mr. Britton,
did I? There we go. You have now, Your Honor.
Thank you very much. All right. On the record,
Bob Britton, Paul Weiss. On behalf of the ad
hoc group of tip lenders and note holders, I'm
joined in the room by my partners, Andy Rosenberg
and Chris Hopkins. And it's a pleasure to appear
up here before you again today. Thank you. All
right. Good afternoon, Your Honor. Howlin for
the United States trustee. Good afternoon, Mr.
Wynne. Good afternoon, Your Honor. Kurt Lieberman
of Prior Cashman. Here on behalf of David Yermann
Enterprises. Goyard, Caron Americas, and certain
affiliated brands, Richemont, and LVMH, and certain
of their affiliated Mazons. Good afternoon. Good
afternoon, Your Honor. Jonathan Covary, Olsen
Promolowski for Gorsky Group Limited and Kate
LLC. Good afternoon. Good afternoon, Your Honor.
John Spiricino from McCool Smith. Here in Houston,
I believe I'm joined virtually by my colleague
Margie Venus appearing on behalf of Wexford Capital
Good afternoon Right anyone else wish to make
an appearance Good afternoon, Your Honor. Leslie
Hyelman -Ballard -Spar on behalf of Street Retail
LLC, the Macerich Company, Centennial Real Estate
Company, and the Ford's Company on behalf of
a number of leases with the debtor. Good afternoon,
Your Honor. Lisa Norman from Andrews Meyers here
in Houston. We're here on behalf of the state.
Appliance that Seth Lieberman, as our cashman,
announced a moment ago. All right. Thank you.
Good afternoon, Your Honor. Justin Birnbrock.
I'm Shepard Mullen. On behalf of Chanel Akpris
and Ralph Lauren. Good afternoon. Good afternoon,
Your Honor. Jason Teele of Sears, Cummins, and
Gross on behalf of Anthony Scapparelli, Yesenia.
Good afternoon. Good afternoon, your honor. Brunson's
got a place that winners for other Southern Stevens
on behalf of BH Multicom Corp, BH Multicolor
Corp, Rich Line Design Bank, and Unique Design
Bank. All right. Anyone else wish to make it?
Good afternoon, your honor. Go ahead. Yes, sorry.
Good afternoon, Your Honor. This is Allison Janoy,
appearing on behalf of Keesley USA. All right.
Good afternoon, Your Honor. Greg Hess on behalf
of Capitol One National Association. All right.
Anyone else? Mr. Ghilardi, have you hit five
star? Good afternoon, Your Honor. I'm Greg Gallardy
on behalf of VINC and CENTRIC. All right, Mr.
Lehane. Good afternoon, Your Honor. Robert Lehane,
Kelly Dry and Warren on behalf of a number of
landlords. Brookfield Properties Retail Inc.
at 18 locations. WFP Tower B Company LP and WFP
Tower D Company LP, the headquarters landlords,
Regency Centers, Turnberry Associates, and Brixmore
Property Group. Oh, and just Mr. Hey, I'm glad
I'm glad you brought that up. I saw that Brookfield
also has a preferred equity interest in the debtor
that's represented by while, obviously, to the
extent that they become a material participant
in the case with respect to any particular matter.
You know, I'll have to evaluate the need to recuse
myself on that matter. But my understanding is
that just indicating what you said that Brookfield
is represented as a landlord by your firm as
opposed to by WOW. Anyone else wish to make an
appearance? Hold on. Good afternoon, Your Honor.
Daniel Rosenberg, General Counsel for Chanel,
represented on the phone by Justin Birnbaum from
Shepherd. Good afternoon. All right, anyone else
wish to be heard? Just hit five star one time.
Good afternoon, Your Honor. David Banker. I'm
law officer David M. Banker, Esquire. I'm the
F .L .C .L. U .S. Distribution Corporation, Christian
Louboutin. Good afternoon. Thank you, Your Honor.
All right, anyone else? Good afternoon, Your
Honor. Trey Wood, can you hear me? Yes, sir.
Good afternoon, Your Honor. Trey Wood with Bracewell.
Appearing today on behalf of Caledine Commercial
Finance. With me in the virtual courtroom is
Chris Carter of the Morgan Lewis Law Firm. All
right. Thank you. Thank you, Your Honor. All
right. Anyone else? Good afternoon, Your Honor.
This is Chess Wong of Cohen Legend Simon here
on behalf of Local 1102. Thank you. Anyone else?
All right, Miss Hardy, who's going to take the
lead? Thank you, Your Honor. First, on behalf
of the SACS Global Debtors, I just wanted to
thank the court for accommodating us today. We
know that it's an enormous effort to get up to
speed on a complex case in just a handful of
hours. So we really appreciate that. With that,
Your Honor, I'd like to turn the podium over
to my partner, Deborah Sinclair. All right, Ms.
Sinclair. Good afternoon, Your Honor. Are you
able to hear me? I am. For the record, Deborah
Sinclair Claire from the law firm Wilkie Bar
and Gallagher LLP for SACS Global Enterprises
LLC and its debtor affiliates. Your Honor, my
colleague, Lucas Emmer, will be running a PowerPoint
on the screen to accompany our presentation.
So I understand you've coordinated with your
chambers on that and I'll ask him to screen share
in just a few minutes. But first I'd like to
echo Ms. Hardy's comments. We'd like to thank
the court, Your Honor staff, U .S. trustee, and
all of the professionals and principals who helped
us get at this point today. It truly was a tremendous
effort, so we're very grateful. Your Honor, we're
here today to present the first date reading
in connection with the Chapter 11 filing of SACS
mobile. Today's hearing marks a new beginning
for three historic American brands. Of course,
the first one is SACS Fifth Avenue, which traces
its roots all the way back to the year 1867.
For over 100 years, SACS has been continuously
operating its flagship store here in midtown
Manhattan. And over those decades, as your honor
and everyone on the phone knows, the store has
become world famous. It is synonymous with luxury
fashion and a classic New York City shopping
experience. In that time, Saks has also developed
a coast -to -coast presence and currently operates
33 locations across the U .S. There's Neiman
Marcus, which has been an innovator since it
opened in Dallas in 1907. Neiman was actually
one of the first stores made clothing. And today,
Neiman offers a curated assortment of that exact
type of luxury fashion across its 36 stores.
And finally, Bergdorf Goodman, for its part,
traces its history back to 1899. For over 100
years, Bergdorf has been an international destination
for customers that are seeking ultra luxury fashion.
Bergdorf is another quintessential New York shopping
the umbrella of Saks Global, which is the largest
multi -brand luxury retailer in the world. These
brands are enduring, they are iconic, and most
importantly, Your Honor, they are open for business.
I want to make it clear at the outset of this
case that the company's troubles are not related
to a decrease in demand for luxury goods or a
lack of interest in department store shopping.
It's actually quite the opposite. goods available
in our stores, we are able to sell them. The
problem, as you'll hear a lot about today and
over the course of this case, has been that we
have not been able to buy enough inventory to
meet our demand, and that is because the company
has been facing increasingly tight liquidity
constraints over the last year. Mr. Emmer? Yes,
Your Honor, Lucas Emmer. Okay, here you go. Thank
you, Your Honor. All right. So before I jump
more into the history and our presentation, I
just want to say what our core goals are going
to be in this Chapter 11 case. On the one hand,
Your Honor, we want to maintain all of those
healthy parts of these businesses that people
know and love, while on the other hand, we stabilize
our continue to provide customers with the upscale
shopping experience that they've come to expect
from SAC Global Brands. Your Honor, I'd like
to ask Mr. Emmer to share our presentation on
the screen now. We can talk a little bit more
about the history of the company and the goals
for the Chapter 11 case. If you could just make
me a presenter. I think I just did. Do you have
your camera turned on? I do, I'm right here.
Hold on a second. Look at it now. Still not able
to share. Your Honor, if we're having technical
difficulties, I can suggest that we share our
presentation on the docket following the hearing.
I'm happy to just go along verbally, if that's
easiest for everyone. Yes, why don't we do that?
Let me just try one last time. Yeah, for some
reason, it's not wanting to make you the presenter.
All right, go ahead. OK, Your Honor, we'll plan
to share it on the docket after the hearing.
So look, as Your Honor may be aware, the current
enterprise that we call SACS Global was created
at the end of 2024. And it was the result of
SACS's acquisition of the Neiman Marcus Group,
which was a deal done for a total enterprise
value of $2 .7 billion. to recognize $600 million
of total synergies from the deal over the course
of the five years post -acquisition, but the
immediate term liquidity made it hard for the
company to chart a path towards actually recognizing
those synergies. And the liquidity constraints
made it difficult to pay vendors on time. That
made it harder to buy more go -forward inventory.
And so last year, the company was ultimately
not able to build an adequate amount of seasonal
inventory leading into the spring season of 2025.
At that point, the company began considering
strategies to address this, including looking
for a new money financing. for new notes and
the company was able to raise $600 million of
new money and capture approximately $115 million.
merchandising systems that were used by SACS
on one hand and Neiman on the other. So all of
these issues led to, in late 2025, the company
starting to work with Wilkie, PJC, BRG, and its
other professionals to pursue what I would characterize
as a number of liquidity and restructuring solutions.
We spoke to parties throughout our capital structure.
We also spoke to third parties. And you'll hear
that, other than the disk facilities that we'll
be presenting to you a little bit Chapter 11.
Your Honor, we have a task now that we're in
Baker Street to obtain much needed liquidity
through our DIP facilities. The proposed facilities
together represent $1 .75 billion in new money
commitment. One of those DIP facilities is being
provided by an ad hoc group of the company's
existing bondholders. They have committed $1
.5 billion of new money to the who are providing
approximately $240 million in incremental availability
under the ADL compared to what was available
pre -petition under that revolver. The DIP facilities
will infuse new capital into the business, and
if approved, they'll position the company for
a strong and stable future. will orient you to
what is obviously a very complex situation. And
again, we will send our slides because I think
it is helpful for you to have that visual as
you think about this later on. But I will summarize
it for you so that we can at least get a lay
of the land for you and everybody else on the
phone here. Briefly to summarize the company's
pre -petition capital structure. to what I've
already described to you. But for now, note that
the notes issued last summer totaled approximately
$762 .5 million in aggregate principal amount.
All right. Just hold on a second. For some reason,
it thinks that I'm not the organizer, and we're
going to get bumped off of here. Just hold on
a second. If we do get bumped off, I think that
we're at capacity both in terms of video and
audio. So at the first break, I'm going to see
if I can open up either Judge Lopez or Judge
Isger's line to see if we can add more people.
But to the extent we get bumped off, just everyone
come back in again. All right, go ahead. We have
over a hundred debtors in a file today and that
doesn't cover every One of those assets is the
company's intellectual property holdings. $428
million. And finally, the flagship building,
Your Honor, that's the Saks Fifth Avenue in Midtown.
That sits in an entity called Saks Flagship Real
Property, LLC. That entity is not in these Chapter
11 cases. It has a $1 .25 billion CMBS loan that
is secured by the building. And our intent, Your
Honor, is to work me to talk to a little... moving
towards optimizing the portfolio for the debtors.
All in, the company does, as I said, operates
nationwide and operates approximately 70 full
-line luxury locations and many more. and luxury
retail, including his leadership during the infrastructure.
Brandy Richardson will continue to serve as the
company's Chief Financial Officer. Ms. Richardson
joined SAC School in August and has been an absolutely
critical part of the process to get us into Chapter
11 today. She is also highly experienced in the
retail space. She served for many years as the
Chief Financial Officer of Taylor & Grant. Receiving
the bankruptcy process is a special committee
of the board. It's currently comprised of two
independent directors, Paul Aronson and Bill
Tracy, both of whom have their own experience
in restructuring. We're in the process of adding
a third independent director, Scott Vogel, to
the board. This call counts. Thank you. Good
afternoon, Your Honor, and thank you again for
spending time on an emergency basis. Broadly
represents what we colloquially call the SO5
digital debtors. The SO5 digital debtors have
a separate capital structure, separate ownership
structure, separate unsecured creditor body.
But they are intimately intertwined with the
operations of SACS Global. And for reasons that
we'll get into later, it was necessary for We
also provide digital debtors to retain separate
counsel and a separate chief restructuring officer
and a separate financial advisor. Those debtors
are SACS Active Holdings LLC, SACS Office LLC,
which is YACO, SACS Office Midco partner, Inc.,
and Ledgerd Outlets USA LLC. These debtors are
not a party to the DIP facility and the assets
that it owns are not subject to the DIP liens.
Although there will be discussions between global
and the FFI digital letters regarding certain
cost -sharing arrangements, because as you'll
learn again later, back in 2021, the operations
at various SACS entities were consolidated and
pursuant to a cost -sharing arrangement. Over
the next few weeks and pursuant to certain milestones
within our cash collateral order, we anticipate
conducting diligence regarding certain restructuring
paths that anticipate absent sufficient financing
that we will pursue certain implementation opportunities.
And that has been in consultation with our term
under Caroline Financial. And I'm happy to answer
any questions whether or not we'll see the podium
back to Wilkie. And you have one independent
director, correct? We do, Your Honor. Thank you.
Yes. Barry Begman is our independent director
and We have one other existing director to resign
shortly before the final. All right, thank you.
All right, thank you, Mr. Martin. All right,
before we get started to the plea, does anyone
wish to make an opening statement? Your Honor,
Bob Britton, Paul Weiss on behalf of the Ad Hoc
Group of Diplomats and Pondholders. Yes, sir.
Your Honor, back in December, my clients learned
that the company was in a very difficult liquidity
situation. driven by former management missteps
in inventory and vendor management, business
integration, and other issues. In the wake of
that news, Your Honor, my clients, alongside
the ABL lenders, engaged in good faith, arm's
length, frankly difficult negotiations with the
company in order to ultimately reach terms on
the dip financing and the other first day relief
just before you for approval today. Your Honor,
that dip financing, which is backstopped by the
ad hoc group, and will be offered to other first
-out holders of the company's pre -petition notes
on the terms set forth in the syndication documents.
We'll provide an immediate cash infusion of $400
million, which is in addition to TIP -ABL availability.
And that's how those dollars, Your Honor, will
be used to stabilize and begin to grow this retail
business. I can't emphasize, Your Honor, I can't
emphasize enough just how critical it is to the
preservation of SACs and the success of these
Chapter 11 cases. but that financing be approved
today and funds tomorrow. Your Honor, while the
situation that got us here was difficult, I think
it's important to note that this enterprise and
its new management team have the full support
of its lenders, and we look forward to working
together with them, with the court, and with
other critical stakeholders to ensure an efficient
value -maximizing path through these chapter
-olding cases and to a reorganization. Thank
you, Your Honor. Thank you. Somebody raise their
hand. Yes. Good afternoon, Your Honor. Ameneh
Bordy from Sidley Austin on behalf of Exonic.
Can you hear me? Yes, I can. Thank you, Your
Honor. I won't make an opening statement, but
I would just like to note that we will be having,
we did file an objection to the dip and we would
like to be heard on that basis. And, you know,
we hope that our objection will be heard then.
All right, go ahead, Ms. Sinclair. Yes, Your
Honor. For the record, Denver Sinclair will keep
our in Gallagher. So before we move into the
agenda, I'd like to move the exhibit and witness
list that's filed as docket number 137 into evidence.
The exhibits that are on that list, as well as
the declaration of Mark Weinstein in support
of the first state pleadings, which is filed
as docket number 17. As you know, Mr. Weinstein
is providing the evidence we need to for the
first day relief, and he is in the virtual courtroom
with us today, physically here with me in New
York. All right. I think it's docket number 139.
139. Apologies, Your Honor. I cannot read my
own handwriting. You're right. Docket number
139. All right. Does anyone object to the admission
of the declaration of Mr. Weinstein as his direct
testimony in connection with the first day hearings?
Your honor, this is Chris Harris of Latham and
Watkins for Amazon. Yes. We don't object to it
solely for that purpose, but would reserve our
rights on cross -examination to identify portions
that might need to be struck based on how the
cross -examination goes. All right. Okay. So
I will admit the declaration of Mr. Weinstein
found that docket number 139 -1 is his direct
testimony. subject to cross -examination. Thank
you, Your Honor. One closing remark. I understand
the Court has entered the Joint Administration
Order. Thank you for doing that. Related to that,
though, we have agreed at the request of one
of the parties in interest that we would make
a statement on the record that notwithstanding
entry of the Joint Administration Order, all
parties' rights to object to substantive consolidation
are reserved. We are okay to make that representation
right now, Your Honor, as the Joint Administration
Order is, of course, entered for procedural purposes
only. With that, I would propose that we turn
to the DIP Ocean. With respect to the other exhibits,
are you going to move in the other exhibits as
well? Your Honor, I think the only other exhibits
that would be necessary for today are the declaration
of Mark Weinstein in support of the DIP. as well
as the declaration of Mr. Jamie Baird in support
of the dip. All right so that is 139 -10 is the
other it's the declaration of Mr. Weinstein in
support of the dip. Does anyone object to that
subject across admission as his direct testimony
subject across examination? Your honor, Jared
Martin for the SO5 digital letters. Is there
a preference between admitting our exhibits now
or after the FACTS global presentation? Let's
just admit the exhibits on this. I'll turn to
you at the appropriate time. Understood. Thank
you. Your honor, Chris Harris related. And just
to your question about the declaration, with
the same understanding, no objection, your honor.
All right, so the declaration of Mr. Weinstein
found at 139 -10 is admitted for purposes of
this hearing subject to cross -examination. And
then the other one is the declaration of Mr.
Baird, which is exhibit 139 -11. I'll admit it's
subject to cross -examination as well, as is
direct testimony. All right, so those three declarations
are admitted. Thank you, Your Honor. So with
that, unless Your Honor has any questions for
me, I propose that we turn to the dip motion.
All right, go ahead. I'll feed the podium to
my colleague, Mr. Warren, to present the dip
motion. Your Honor, this is Caroline Reckler
on behalf of Amazon. I just ask that we take
the motion to adjourn first. All right, let's
do that. Go ahead. Your Honor, we filed a motion
to adjourn the hearing on the DIP and the cash
management motion. That motion was filed at docket
number 66. And thank you for hearing us. Without
getting into the merits of the DIP motion, suffice
it to say the debtors are trying to do a lot
on the first day of the case with respect to
the DIP. It's not a simple dip. There are three
dips with three roll -ups, and on top of that,
two refinancings of other pre -positioned debt,
all of which, Your Honor, is being asked to approve
today. The interim release being requested will
have a significant impact on the debtor's capital
structure, particularly at the entity that we're
focused on, the flagship hold code two box, an
entity with very little secured debt. and unencumbered
assets, at least as of today, before a DIP is
approved. There are complex issues of cross -debtor,
cross -collateralization about which we want
an opportunity to argue. We want to cross -examine
the debtor's witnesses. And we've had all of
only five or so hours with the papers that were
filed, which only included the motion, order,
and two declarations. And about 20 minutes before
the hearing, the DIP credit agreements were attached.
We requested those credit agreements promptly
after the motion was filed, and we were not provided
with them at that time. The credit agreements
will have meaningful information. For example,
we don't know what the conditionality may or
may not exist on future draws after the court
grants potentially case altering release today.
We don't know if there are any conditions subsequent.
We don't know what the covenants are. Dip motion
deserves a full and fair hearing after parties
and interests have time to fully appreciate what's
going on here and what bodies, if any, are buried
in the 93 page proposed order that the debtors
just filed today. We're not asking for a lot,
Your Honor. I'm asking that you simply adjourn
the dip motion until tomorrow morning. I'm sure
that Your Honor is going to hear about the debtor's
exigent need to draw on the DIP facility right
now and the harms that will befall the debtors
if the company can't do so. Maybe that's true,
at least for a certain of the debtors. We don't
believe it is true, particularly for the flagship
hold code. But in any event, Your Honor, it's
after, what is it? It's after 5 .45 today on
the East Coast. The debtors are not going to
be able to fund the DIP today. It's just not
possible. We're already into tomorrow with respect
to funding the DIP. Rushing to get a DIP order
entered tonight before all of the documents have
been reviewed by the applicable parties only
serves to curtail the ability of parties of interest
to prosecute objections to the relief that based
on the little that we do know could have serious
consequences for the rest of the cases with respect
to the recovery for unsecured creditors. such
as Amazon and the brand. Your Honor, as I said,
we're not asking for much. We're asking for the
morning. Thank you, Your Honor. Ideally, we would
be in a position to fund tomorrow's disbursements
tomorrow morning. And Ms. Breckler's point that
it's past 5 p .m. in New York is frankly a little
bit beside the point. This is a highly publicized
bankruptcy. We need to be able to give our vendors
and our employees confidence that we are stabilizing
this business ASAP. And if we leave court today
without our interim order, we're not going to
be able to demonstrate that to our creditors.
The other point I want to make, Your Honor, is
the idea that this dip was a surprise to Amazon
is just not accurate. We've been in close contact
with Amazon throughout our preparation for these
cases. We actually received a letter from them
on January 9th, almost a full week ago, in which
they told us that they had become aware of several
materials from the dip and that they would be
ejecting if we pursued it. So coming in here
now to say that they don't have sufficient notice
and they don't really know what's going on is
just disingenuous. The only purpose of this motion
is to create chaos at a time that we are in,
frankly, desperate need of stability. So on those
grounds, we would request that you deny the motion.
Your Honor, may I be heard? Yes. This is Omnate
Borde on behalf of Exonic again. I just wanted
to join in Amazon's motion for a brief adjoinment.
if not on whole, at least in part with respect
to the entity that we're concerned with, which
is also SFH2, the same entity, and one of its
subsidiaries. Thank you, Your Honor. All right.
I'm going to carry the motion. I want to listen
to the evidence as to the need for the money
to create liquidity and stability, and I'll consider
it along with the motion. So I think before we
get to the evidence, We're going to try to open
up and, you know, we're maxed out both in the
cameras and in the people who can call in. So
if we have a five -minute break, we're going
to open up another line, Judge Isger's line,
to allow others to be able to join. It's open
now. Okay, so if anybody wants to Let me just
put it on the on the line, but I have to call
in Okay, all right, so if anyone wants to join
judge Isger's line All right. So I've just put
on here the Judge Isger's passcode. So if anyone,
if for some reason you get pushed off, then the,
you can call Judge Isger and that will open up
another 500 lines. And right now we're pretty
much at capacity on here. They're listen -only
lines, I'm sorry, they're listen -only. Okay,
thank you. Your Honor, if I may, Your Honor.
Your Honor, we've been working through the start
of this hearing on an objection. We will go ahead
and file it and I would just ask that if Your
Honor does go forward with the hearing that we
do at some point, the appropriate point, take
a pause so that you can read our pleading. All
right, OK, we'll do that. All right, go ahead,
Ms. Sinclair. Thank you, Your Honor. I'll see
the podium to Mr. Ford to present the dip. All
right, thank you. before we get into any argument
here would probably be helpful. The overall capital
structure of the business itself, of course,
is quite complex and sizable. And putting aside
the debt with the flagship and the other non
-debtor assets, there's over $3 billion of secured
debt, mainly in the form of passive -based revolving
credit facility and... package the ABL with to
be rolled out. Your Honor, this is Charis of
Latham for Amazon. I think it may make sense
to take the brief break Your Honor offered and
you could look at our objection that we just
filed briefly and then we could resume with the
cross -examination, which might make more sense.
All right. Well, I will do that. Why don't we,
it's 5 .02 Central. Why don't we come back at
5 .15? Thank you, Your Honor. Thank you, Your
Honor.