American court hearing recordings and interviews - 11 - Saks bankruptcy court hearing, 2/20/2026

Episode Date: February 21, 2026

Listen to the hearing held in Saks's chapter 11 bankruptcy proceedings on February 20, 2026, to catch up on the Saks bankruptcy.The audio streaming on this platform is available on the bankruptcy court's docket. If you'd like to download it directly, see docket number 926, which is a PDF with an embedded MP3 file:https://cases.stretto.com/public/x503/14494/PLEADINGS/1449402202680000000212.pdfThanks to streaming technology and my podcasting initiatives, publicly available court hearings are more readily accessible to people who are hearing impaired, people who prefer to hear content while reading along with subtitles, and the many people who cannot be present in person or send someone to take notes, or for who it does not make sense to hire counsel given the typical costs and delays.Also, some streaming platforms enable use of subtitles in languages other than English, which expands the accessibility of information about developments in the Saks bankruptcy proceedings internationally. Given the international nature of the business and how many people are affected by the bankruptcy, I believe international streaming is essential.There is an important development in the case ahead. The Saks Meeting of Creditors is coming up. The Meeting of Creditors is scheduled to be held telephonically on February 23, 2026, 1:00 p.m. Central Standard Time. Below is the dial-in provided for the call, on the case administration site, which also includes more information about the Saks cases - https://cases.stretto.com/saks/---Meeting of CreditorsPursuant to section 341 of the Bankruptcy Code, the Meeting of Creditors has been scheduled for February 23, 2026, at 1:00 p.m. CT and will be held telephonically:[phone]; passcode 7125797#---Meetings of Creditors can be informative and provide an opportunity to ask questions of the representative of the bankrupt company presented at the Meeting of Creditors.Thanks for listening to my podcast! Please Subscribe to support my work.

Good morning. It's 9.30 a.m. on Friday, February 20, 2026. We're here in case number 26-903, SACS Global for second-day hearings. Why don't we get appearances of counsel, and then we can proceed. Good morning, Your Honor. Separate and Claire, Wilkie Far and Gallagher for the debtors. Good morning. Good morning. Good morning. Good morning. Your Honor. Jared Martin for the S. 5 digital letters. Good morning, Your Honor. Bob Britton, Paul White, on behalf of the Diff Lenders. I'm joined in the room, Your Honor, by my partner, Chris Hopkins. Morning. Good morning, Your Honor.

Lorenzo, Morrison and Forster on behalf. The next one is joined by my partner, Ben Butterfield and others from Mocco. Yep. Good morning. Good morning, Your Honor. Daniel Fiorello from Audubourke, PC. I'm joined by my partner, David Couselman, and my co-counsel from Morgan Lewis, Council for Bank of America, aging for the ADL.

Morning. Thank you for calling. Someone. All right. I'm going to activate the hand-raising feature, so please hit five-star, because there's just too much background noise. Conference, muted. Good morning, Your Honor, Justice Schiffer, prior cashman on behalf of David Uerman, carrying a BNH, Montclair, Richemont, and SMCB.

Good morning. Good morning, Your Honor. Chris Carter, of all of him of the Sybacus, on behalf of Caledon, Commercial Finance, as the pre-condition agent to the S.O.5, digital debtors. Good morning. Good morning, Your Honor. Ian Winters, on behalf of vendors,

B.H. MultitonCorp, B.H. Multicolor Corp. Richline Group, Inc. United Neat Designs, Inc. Graph Diamonds, New York, Inc. 64 Facets, Inc. an MSAROOSA Corp. Good morning. Good morning, Your Honor.

Sid Schindberg, my associate, Naomi, Cheney on behalf of Margaret McLean, Jr. Good morning. Good morning, Your Honor. The United States Trustee. Good morning, Mr. Wynn.

Good morning, Your Honor. John Higgins, her hedges appearing with with Shane Johnson and the Paul Wise Group on behalf of the Adhound Group of Ditt Lenders, and secure note holders. All right.

Good morning. Robert Lee Hane, Kelly, Drian Warren, on behalf of landlords, Aventura Fashion Island, Gricksmore Park Shore, GGP Retail LLC, Regency Centers, Brookfield Office,

and Turnberry. Thank you very much, Your Honor. Thank you. Good morning, Judge. Gary Vist for the vendor, Two Source. Good morning. Good morning, Your Honor.

John. Go ahead. Good morning, Your Honor. John Dodd of Pinker McKenzie on behalf of Balantina, USA, and Prada USA. Good morning. Good morning, Your Honor. Roy Cass with Hunt and Andrews Kerrpe on behalf of Capital One. Good morning.

Good morning. Omine Bordy on behalf of Exxonant Capital Management from Sidley. All right. Good morning, Your Honor. Go ahead. Bethany Simmons, Loeb and Loeb LLP, on behalf of Bonnie Inc., Roberto Coyne. GV USA, Dulcea and Gabana, USA, and Dulcea and Gabana Beauty, USA. Good morning, Your Honor.

Leslie Heilman, Ballard Spar, on behalf of Centennial Waterford, Willow Bend, LLC, Street Retail LLC, the Forbes Company, the Irvine Company, LLC, and the May Search Company, all landlords of the debtors. All right, thank you. All right, anyone else wish to make an appearance that hasn't made one hit five-star, Mr. Sutherland? Good morning, Your Honor. Courtney Burnbaum, on behalf of International Diamond Importers, Inc. and Tasteberry Corp. Vendors.

Good morning, Your Honor. Lisa Norman from Andrews Myers on behalf of David Yermann Enterprises, Delta Galile Industries, GMB, Suvali, Goiard, NM, Chicago, Caring America, Louis Vuitton, Clair USA, Reichmont, North America, SMCP, Uerman Retail North America, and Zimmerman Ware Party. Also on the line, Joe Schiffer from Prior Cashman, we're their local council. Good morning.

Good morning, Your Honor. Morning. Leslie Darkoff, Mard Hock and Hammond, on behalf of Valentin and K. LATG jewelry manufacturing, LTV. Thank you. Morning. Good morning, Your Honor. David Kuzlowski with Morrison Cohen representing S. Rothschild and Company Inc. Comark LLC, MNJ Apparel, Major, Major LLC, Santoni, North America, Camilla Australia Party Limited, and Camilla Corporation.

Good morning, Your Honor. Jason Angelo of Reed Smith, representing Citibank in its capacities of trustee and collateral agent. Good morning. Good morning, Your Honor. Jason Keel and Phil's Commerston Gross on behalf of Skipperly, USA, Inc. Mr. Sutherland? Yes, Your Honor. Mike Sutherland, Carrington Coleman, for AJD. Platinum and Vivid Blue. Okay.

Does anyone else wish to make an appearance hit five-star one time? Good morning, Your Honor. Can you hear me? Yes. Jerry Lee Miller, so the Yawton LLP for Simon Property Group. Good morning. All right, Ms. Sinclair? I can hear you fine.

Great. Morning, Your Honor. Again, Deppert Sinclair will be Far and Gallagher for the global debtors. We were relatively short agenda today, as Your Honor has granted most of our second-day relief ahead of today's hearing, which we're very appreciative of. And if it pleases the Court, we know that the SACS off-fits digital debtors do have something on the agenda, but we'd like to go slightly out of order and start with the global debtors matters. because the only matter that we'll be going forward today is our final DIP order. And before I move into the presentation on the DIP, I'd like to give the court a brief status update. So, as you know, we've been in Chapter 11 for a little over a month.

The company has spent that time working around the clock to rebuild its relationships with vendors, and those efforts have been very fruitful. As of today, we have more than 100 brands that have either executed or are coming close to executing trade agreements with the company. Our brand partners, needless to say, Your Honor, are at the heart of our business, and we're generating great momentum with them. Debtors have also been using this time to refocus on their core commitment to luxury retail. As Your Honor knows, the company has started closures of around six brick-and-mortar locations. Those closures are proceeding ahead of schedule and proceeds of the full-line store closures and has recognized significant cost savings already through-com.

Overall, you're on performing the dip budget and merchandise receipts, and we've also been working actively with our employees. lenders. We did admit the death time to admit any new evidence today, but both witnesses are here in the courtroom with us. Yeah, just to make sure, does anyone object to using the testimony from the first dip hearing that went on for about seven and a half hours as testimony in connection with the second day hearing. All right, hearing no objections. We'll use that testimony, obviously subject to cross-examination to the extent necessary. You alluded to earlier, we are pleased to come before you today with a largely consensual proposed final dip order. We have come a very long way since the unsecured creditor.

The largest brand is no longer pursued. And we've resolved almost all of the formal objections and informal comments that we've received to date. We believe that the revised form of order, we file that their resolve, we overruled in light of the resolution that we've reached with the committee, and which is supported by our largest brands. And in fact, Your Honor, we've seen that some of the limited objections, court I'd like to walk through some of the material elements of our resolution with the committee because I think that is also going to start to address.

Here is Marshall and so I'll spend a little more time here. The resolution is intensive on email information is supported by the companies who also provide good in the post-petition period. The new language gives our brand partners a lean on those pros, a senior to the dip obligation, senior to the pre-up in the remote scenario. The new language over the retreat or post-petition, the proposed final debt order clarifying formal steps. And did I understand.

Just one question. Did I understand, I thought I also read that with respect to any sales proceeds on pre-petition amounts, that those can be paid in the ordinary course of business to the concession and the consignment. So there's no, it's not treated as pre-petition debt so they can just be sold in the ordinary course of business. I thought I understood that that was also in there, correct? under different vehicles does not otherwise impact the vendors will continue to absent a new post petition agreement finally nothing in the dip order impacts any vendors the overall thank you i have no questions let me hear first from the committee and then i'll hear

from anyone else hold on a second mr butterfield hold on unmute you uh i think so good morning your honor can you hear me i can hear you fine go ahead mr butter great uh ben butterfield morrison enforcer proposed counsel to the committee. Your Honor, I don't know if you've had a chance to review the statement we filed last night, but I did. You did. Okay, great. So, look, as Ms.

Sinclair explained, the committee's resolved its concerns with the dip financing. And in our filing, we tried to explain the benefits of this for the company's vendors and unsecured creditors and landlords and really everyone. And look, dips are hard fought, right? This was no exception. Very hard fought. came down to the wire. But I think from the committee's perspective, we've absolutely gotten to the right place.

This facility provides a billion dollars, over a billion dollars, a new liquidity to the company. Nearly 600 million of that is, you know, slated to go out to clean up pre-petition claims owed the vendors. We've taken a very close look at the budget, which we understand will be agreed in the next few days. And the company is getting the cash at deeds. That was really our primary focus and concern. We want the company to be on solid footing going forward, and this facility does that. It's also going a long way of this facility to restoring relationships with vendors between tax and incentives, really it's partners. Like I said, there's almost $600 million available to pay pre-position claims to critical vendors, to concession vendors, to consignment vendors.

And that's absolutely what this company needs to do to bring everyone back on site. And from what we're hearing, the company is doing it. So we're very, very proud of that. Of the 600, we understand that 330 is been represented to us at 330 million of that will be going out the door in the next two weeks. And we understand that there's a statement that will lead into the record to that effect at some point during this hearing. Another focus of the committee was making sure that vendors and really everyone who does business with this company on a go forward basis is protected. And I think we've achieved that. Like Ms. Sinclair said, we preserved the company's surcharge rights, not just for good delivered during bankruptcy, but also for sub-rent.

And while we're talking about sub-rent, you know, the company's landlots are very important. These are premium locations. And they've been very patient with the company. And the committee's position is that they should not be waiting until the end of the case to have sub-rent paid. And we're very pleased that the companies agreed to pay stuff rent within 10 business days. It's the right thing to do it. It was a very important point for the committee. Back to vendors, look, as everyone knows, you know, this business is, you know,

that doesn't exist without its vendor community. And we had a, there was a concern from concession and consignment vendors, you know, like are we acknowledging our rights, the diff priming our interest? And so we made it very, very clear that this dip does not prime the rights of concession vendors or consignment vendors. And that applies both for goods delivered pre-bankruptcy and post-bankruptcy. The company and the dip lenders have agreed that regardless of when goods are delivered, the rights of each vendors to their goods are sacrosancts, they have priority, and they're not primed. Now, once goods are sold, the vendor's right to payment from the company for confession and consignment goods,

will sit ahead of the dip term loan and ahead of a billion dollars in new money. And from our perspective, look, no case is perfect, but this is really the gold standard for protecting these vendors sitting ahead of the DIP term loan. We're very pleased that the DIP lenders agree to that. We think it was the right thing to do. And I can tell you from the committee's perspective, we think vendors should feel very comfortable doing business with this company going forward. We've also negotiated. We haven't found a lot of conversations, not just with the committee, but also with the broader vendor community. We've been hosting calls where we've talked to vendors and heard their concerns and tried to explain what the facility does and what it doesn't do and see where the pressure points are.

As a result of those conversations, we've negotiated for an extended challenge period for confession and confinement vendors across the board, not just the committee. And also a reservation of set off rights, which is another thing I believe that companies council will lead into the record at some point during this hearing. So those were asked from the broader vendor community, and we are very happy that we were able to deliver them. So look, is this a perfect dip facility? No, you know, no facility is. But I think we set the bar really high, especially for vendors and for landlords in a retail case. And we're happy with what we've achieved

and we're supportive of entry of the dip order. Thank you. All right. Who else wishes to be heard? Anyone hit five star if you wish to be heard? All right. Are there any remaining objections? Your Honor, can you hear me?

Yes, I can. Oh, I'm sorry, Your Honor. Good morning. Justice Scherbergen, Prior Cashman, on behalf of David Uerman, Carrying, LBNH, Monclair, Richemont, and SMCP, and their various affiliated brands. As Your Honor may recall, at the first day hearing, we had identified that there were significant issues in the interim order as it relates to concession and consignment vendors. Since then, we've been working with the debtors, the dip lenders, the committee, and counsel for dozens of other vendors to bridge the gap into the final order that's before, Your Honor. We follow the reservation of rights at Dr. Number 856, indicating that we're still working on reaching a deal for the form of the final order. And, Your Honor, with the modifications that have been presented to you, we are fully supportive of the debtor financing. Your Honor, my clients are some of the debtor's largest vendors and most iconic fashion brands, and they want to continue doing business with the debtors and see them all the way through to a successful reorganization.

And, Your Honor, I really want to thank Committee Counsel, particularly Mr. Butterfield and Mr. Mantle, for taking up the vendor issues at the committee level after it was formed and bringing us to where we are today in terms of the final order. And I'd like to thank the counsel for the other vendors. I think we worked very constructively together, as well as the folks at Wilkie and the Spiebel and the folks of Paul Weiss, Mr. Britten and Mr. Hopkins. Your Honor, we think this is as good as a deal as the parties can reach, and while not everyone is getting everything they're looking for, we take that as a sign that it's a good deal,

and we look forward to partnering with the company to bring these cases to a successful conclusion. Thank you, Your Honor. All right, thank you. Anyone else wish to be heard in five-star? Your Honor, Mike Sevelin. Can you hear me? I can hear you, sir. Oh, first of all, I want to really appreciate Mr. Schiffer and Mr. Butterfield for dialing us into the discussion. I think it's very disproductive.

Our objection was, as Mr. Schiffer said, because the interim order was left a lot of issues open. I think this version covers most of it. those. One housekeeping thing, Your Honor, I think our objection also somehow got linked to the global, to the digital debtors cash collateral motion, and I think that was in error. I don't want to delink from this one, but I think if you can delink this from that one, that would be appropriate. The only comment I would have on the final order, and I think it's one that Your Honor could do without damage to the bargain. At the end of paragraph 18, F, where the deadline has been extended,

and let me say, I hope, my client hopes that it will be a, you know, a critical vendor with a trade agreement and that will not have to get involved in anything like a challenge of any sort. they just want to get back to business. But in the event that a vendor, a consignor does have to resort to that, Your Honor, and I can see that arising either if they're not selected as a critical vendor or they've chosen not to do business or maybe they have a trade agreement and the payments have started, but there is a world where good plans go awry.

I think if the court reserve to itself the right to, re-extend that deadline for cause, I think that would create some more comfort in the consignor community. And I'll leave that to your honor. All right. Thank you. Your honor, Ian Winters from Claystatt Winters, Dorello, Southern, and Stevens. We filed a reservation of rights on behalf of the clients that we represent and mentioned in our appearance. We're pleased to report that we're happy to withdraw. our reservation of rights and limited objection.

We're pleased with the efforts of all the parties that have taken part in the negotiations over the last several weeks to come up with comprehensive language that protects concessionaires and consignors to the fullest extent possible under the circumstances. This wasn't an easy negotiation, but we are pleased with where things have ended at the end of the day. Um, we echo, um, uh, uh, the comments mentioned earlier about the efforts of the committee and committee council, Mr. Butterfield in particular and are extremely appreciative of those efforts. We fully support entry of the dip order. All right. Thank you. All right.

Uh, Mr. Garvante, do you wish to be heard? Uh, yes. Thank you, your honor. Um, John Garvanti, I represent, um, certain consignment and concession vendors whose claims are primarily for pre-petition. and sale proceeds. Your Honor, like the debtors said, we are not here to block good financing.

We have a limited objection. We understand that the debtor's difficult to operate, but the state order as drafted does not preserve our clients secured collateral in the proceeds of the sales, their pre-petition sale to merchandise. It preserves language, and there's a difference. For our client alone, the pre-petition proceeds, an issue exceed over $10 million.

dollars. And the problem is not the priority language. The problem is preservation. And if you look at the debtor's reply, which they filed last night, nearly all the protections they describe for consignment vendors and concession vendors relate to post-petition, consignment agreements, post-petitioned merchandise, post-petition priorities, and post-petition payments. This is forward-looking. Our objection is backward-looking. And it concerns pre-petition merchandise have already been sold and the proceeds of those sales. And so when you strip away the post-petition protections, the only protection for the pre-petition consignors and concession vendors is

nothing drives you're meaning, all your rights are reserved. But that's not adequate protection, particularly here, where our client's rights attached to identifyable merchandise and identifiable proceeds. Those proceeds were required to be preserved. They were required to be segregated and satisfied. They were not. Instead, they were commingled at operating counts and likely have been used in operations.

So once these proceeds have been commingled and or spent, my client's secure position becomes practically unenforceable. And they better say, well, we're reserving all your rights. But reserving rights after failing to preserve McSlanar-all-at-issue, it makes those rights illusory. So you can't mean to be reserved a right in property that's not been preserved. And so this is basically what we consider as a constructive stripping of our rights. Now, the debtors said, well, we didn't prime you.

You're still ahead of the debt lenders and your proceeds. But priming is the issue. Because if proceeds have been absorbed with the general operating cash with no segregation and no accounting, that's our secured interest. It's impossible to enforce now in any practical way. So basically they're saying we've still mingled the proceeds. We may have used the cash. We can't identify your proceeds, but don't worry, your lien still exists and your rights are reserved.

Exists on what? What property? What segregated proceeds? So a reservation of rights doesn't create collateral. They're our client that's everything right. They protected their security interests. They have true consignment relationships. The only thing they couldn't control was the debtor's own internal handling of their

proceeds. And because they failed to segregate and instead commingled those proceeds, our rights are basically gone. So when they say you still have your rights, you're right to reserve, but there's nothing identifiable left to attach them to. So you're all, it's pretty straightforward. You know, I would also say there's another issue you should be aware of, and that's this supply, supply chain consequences of what's been going on. Our vendors are hesitant. We've heard from others and other vendors, are hesitant to engage with the vendors because of this uncertainty and these issues with the pre-petition collateral. And I just want to raise this issue with the court that, you know, this is going to maybe run the vendor's going to run into operational problems because it's not going to be able to get enough vendors to participate in post-petition business.

So we're not asking you again. We're not asking to be denied it. We're asking for one thing. We want a meaningful carve-out for our pre-petition consignment and concession proceeds. and we want that money to be set aside and for it to be carved out from users collateral in any way by the dip order. Thank you, Your Honor. All right, thank you. All right, does anyone else wish to be heard? Your Honor, Ominey, boarding from Sidley Austin on behalf of Exxonix.

Yes, ma'am. Thank you, Your Honor. I would like to echo other parties and give our thanks to the debtors and to the dip lenders for hard-refer. fought negotiations over Exxonics position. We did reach agreement on a stipulation that reserves issues for another day. We're hopeful that we can resolve those issues without coming back to Your Honor, but we believe that the stipulation does preserve those issues in a way that is meaningful for Exotic and also helpful for the debtors and the dip lenders for today.

We just have one very small point, which we did raise with the debtors just before the hearing, but weren't able to connect with them, understandably so. In reviewing the order overnight, we noticed that the notice provision with respect to changes on the order has been limited, and we would like to be included in the list of parties that would receive notice for those changes. Thank you, Your Honor. All right. Anyone else wish to be heard? Your Honor, this is Robert Leahy, Kelly Dry and Warren. Can you hear me?

Yes, I can hear you. Mr. Leahy. Thank you, Your Honor. Very briefly, on behalf of numerous. landlords, we absolutely agree with the comments from committee council and are deeply appreciative of the efforts of Wilkie Far, Lenders Council across the board. This is the benchmark. This is the right result with respect to stub rent and are hopeful that it is something that will be carried forward into numerous cases going forward. And again, thanks to everyone involved for the hard

work to got us in this place. All right. There are several other people who have raised their hands but if you if you if you want to speak just hit five star if you're not unmuted good morning you're on go ahead good morning you're on let's say hi oman yeah now on behalf of a number of landlords as well I echo mr. Lee Hain's comments on the record and and will not duplicate and we but but I did would like to say I appreciate the efforts of debtors council lenders council and communities council in reaching the result of the final dip order. Just for clarity, you know, we advised them yesterday

that we were signed off on the form of final dip order, but in case it was not clear, we do believe that our objection filed at docket 703 is resolved as a result of the form of final order that's been submitted to your honor. All right, thank you. All right. Thank you.

Mr. Scheinberg. Oh, good morning. on her again. Real briefly, on behalf of Margo McKinney, we would like some sort of a more formal procedure as to how to be determined to be a critical vendor. It seems like that's kind of a I spoke with counsel and it's like call your buyer, call this person, but there's no simple procedure on how to go about that so we can determine if we're going to be able to continue doing business and if we're going to be able to receive payments for the free petition sales which you like a fairly substantial for a small company and that feeling we'd ask for some

sort of a clarification is how that procedure works as opposed to this mystery guess thank you all right anyone else wish to be heard good morning your honor bob britain paul white i'll be off the dip lunders just very briefly your honor first i'd like to just echo miss sinclair's comment to the them. Over the last month, we've come very, very far, not only with the debtors, but with all parties and interests who reached out and had comments on the diploan. I want to take a moment to thank the debtors, the UCC and all of its members, individual vendors who reached out in landlords, as well as Exotic for working with us and fighting with us, but ultimately getting to the right place over the course of the last month.

And then briefly, Your Honor, and I'm sure Ms. Sinclair will address that, but since I look at the floor, just briefly in response to Mr. Gravanti's comments, Mr. Garanti told you, Your Honor, that he's got a pre-petition claim, a pre-petition claim, which he asserts he has a lien in or an ownership interest in,

or ought to have a lean-in or an ownership interest in. But with respect, Your Honor, I think Mr. Gravati went on to repeat his own argument, and he told you that all those funds were commingled, that a secured interest was unenforceable, and that his liens have gone away. And that's sort of the whole point, Your Honor. What we've done in the debt is we've preserved his rights to assert whatever legal interests or rights he may have down the road, but it's not clear, based on his own statements, that he has anything to adequate. protect today, therefore the resolution of rights ought to be more than sufficient. With that, Your Honor, I thank you for your time, and I'll see the podium. All right.

Does anyone else wish to be heard before I go back to Ms. Sinclair? Ms. Sinclair? Ms. Sinclair? In no particular order, but I'll start where Mr. Britton ended with the statements of Mr. Gravanti. Respectfully, Your Honor, we aren't hearing any sort of uncertainty about operational issues from vendors in the vein that Mr. Gravati is mentioning. We're getting plenty of inventory.

In fact, I understand we're actually well ahead of where we expected to be for the first quarter of 2026 following the month of January alone. So I just want to make it clear on the record that we're not experiencing the types of problems that he's mentioning. On his point about leans on proceeds, Mr. Britton took the words out of my mouth. His right to assert any pre-petition claim is fully preserved. But we agree with Mr. Britton that it's not necessarily true that he has the type of claim he thinks he has to. But again, the point is his right to assert that at any time in the case is fully preserved. Our brands know how we operate their sophisticated parties who are aware of the race they were entering into.

Respond to Margo McKinney's counsel, a critical vendor process obviously is in the debtor's discretion at set forth in the terms of the interim and final orders governing the critical vendor process. So we're happy to engage with Ms. McKinney on the terms of our arrangements with her. We'll be implementing other than what's set forth in the orders would have been ended. It's Boardee's request on notice in the exotic stipulation. Is anyone else wish to be heard? Someone keeps raising their hand, but if you hit five star, if you want to speak.

All right, go ahead. I'm representing Nakhwee's Group. We can't hear you. We can't hear you. Get closer to the phone. Get closer. Nakhwee's Brooks, India and Nakhwees, Experts Private Limited, India and Nakhwee's Europe,

Limited UK. And I'm a pro se litigant and lead investigator, major international predator, and my liquid claim is at 273 million plus. And claim number 401, we was, formerly, Your Honor, I'm raised your grave objection to the current proceedings. We have to address to forensic

audit of better tax global which has uncovered systematic pattern of asset developing including inventory of inventory of 412 million plus go stocks and discrepancies with the salesports ledger and physical reality for the report your honor we have already engaged with a United States SEC and the UK insolvency and the data councils have been silent and we contact to the uh now before the filing of uh six on 13th January uh we all right we contact to uh we contact to uh we contact the email on 7 January and uh the board but they don't die and they give the cease and disease notice from

Mark stencil Wilkipar and Gallagher And I wish to direct the court to address my evidence I provided to the assistant U.S. trustee, the Althomas and Scatman, court case managers, Tyler laws on January 21 to the understill of the court. With the penalty of perjury. All right. Okay. All right. We're here on the.

dip financing motion, so to the extent that you want to file something, go ahead, but we're focused here on the dip motion. Thank you. I'm going to mute your line because I'm getting a lot of background noise. All right, does anyone else wish to be heard on the dip? Hit five star one time. Thank you. First of all, I really appreciate all the parties' hard work on this. It seems that, you know, We've gotten a solution that resolves 99, 97% of the issues. As it relates to the issue regarding the comments raised by Mr. Garvante, obviously, I'm not, there's nothing in front of me to make a decision. You know, tracing assets is something that people can do.

under the appropriate pleadings, and you have all kinds of tests to be able to do that. I think that me ordering a carve-out or anything like that is really beyond the scope of what I can do. I think that with the preservation of rights, whatever the status was on the date of the petition is preserved, and to the extent that funds were commingled after, the petition date, you know, that has different consequences than before the petition date. So I'm going to overrule that objection. And with respect to the other matters really weren't objections. There were, you know, comments.

And I always reserved the right to address deadlines if motions are appropriately filed before any deadline comes to pass. So with that, again, I appreciate everyone's efforts, and I will enter the order. I don't know if the order that is in front of me needs to be tweaked, but otherwise I'm prepared to enter that order. The order submitted a document number 8-9. Okay, so just give me a minute. All right, that order has been signed and sent to docketing. Let me unmute you. Good morning, Your Honor.

Jared Martin from Bradley Aaron Bolt Cummings on behalf of the SO5 digital debtors. We're here this morning on approval of final use of cash collateral. The debtors have been working hard to negotiate those terms over the last month with the global debtors, their lenders, and certain vendors and consignment counterparties. And we believe we have reached a resolution of all outstanding issues. Earlier today, we uploaded a proposed order, which is at... 903. 903, thank you. And an amended witness and exhibit list at 902.

The witness exhibit list consists of the first aid declaration of Andrew Heed at Exhibit 4, which the court has already entered, and then an approved final cash collateral budget at exhibit number 7. Your Honor, I'm happy to walk through the key terms to the final cash collateral order and answer any questions along the way. I don't, I mean, I understood that kind of the key changes were both in how you treat the administrative expense claims, if you will, as between the global debtors and the digital debtors. That kind of, that's number one. And then number two, the process with respect to both consignment and concession is kind of now identical for both. But that was a different, that was the different orders that had identical programs. Those I thought were the main changes.

Was there anything else of significance? Yeah, the other primary change relates to the proceeds of the interchange settlement. The court is aware that there has been a 1990 motion filed. And there's just a process and procedure that relates to those funds that allows a party to come before this court on an emergency basis to determine the application of those funds. and moves up the challenge deadline to kind of coincide with that timeline. And that can be found in paragraph 32.

But for the importance of doubt, that doesn't impact the debtor's ability to use net consignment proceeds sort of in the ordinary course. The language in paragraph 32 references unencumbered collateral, but that doesn't hinder our ability to use net after payment of consignment funds

to consignment counterparties. All right. Does anyone wish to be heard with respect to the digital debtors final cash collateral order? Your Honor, Ben Butterfield, Morrison and Forster for the committee. Go ahead, Mr. Butterfield. Thank you, Your Honor. But I'll just say we appreciate everyone's efforts on this.

It wasn't just because it was a little bit smaller than the billion dollar debt doesn't mean it wasn't less complicated. There were a number of concerns with the order they've now been resolved and be supported treat of the order all right thank you anyone else wish to be heard yes your honor ian winters clay stat winters dreller southern stevens we filed a limited objection and reservation of rights on behalf of b h multicolour com corp bh multi-color corp rich line group inc and unique designs inc um pleased to report to the court as we did with respect to the global debtors matter uh that our issues have been resolved through the revised proposed form

from a final cash collateral order. We're fully supportive of that order. And we thank Mr. Butterfield, Mr. Carter, Mr. Bailey, and Mr. Martin for their hard work and honest negotiations in getting us to this point. All right. Thank you. All right. Anyone else?

All right. So I had an opportunity to review the form of order that was filed at docket 903, the red line of that order that was filed at docket 903, the red line of that order that was filed at docket 9. and and I think this is proper exercise of the debtor's business judgment and I'm pleased that it's you know largely if not entirely consensual so I will go ahead and approve the you the final use of cash collateral so just give me a minute right that has been signed and sent to docketing all right is there anything further we can do today nothing further from the digital debtor charm thank you miss Sinclair

Oh, Your Honor. Thank you. All right. All right. Thank you. All right. We'll be in recess to my 11 o'clock hearing. Thank you all.