American court hearing recordings and interviews - 6 - Saks second bankruptcy court hearing, 1/22/2026

Episode Date: January 23, 2026

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All right. Good afternoon. It's 3 p.m. on Thursday, January 22nd, 20206. We're here in case number 26-3013. In connection with a cash collateral motion set, which was filed at docket number 34. So why don't we get appearances of counsel and then we can proceed? Good afternoon, Your Honor. Jared Martin, Bradley, Bryant for the S.O.5 digital debtors.

Also with me on the GoTo meeting and via telephone is our chief restructuring officer with accordion partners and your heating. Good afternoon. Anyone else wish to make an appearance? All right. Mr. Martin, I'm going to activate the handraising picture. You draw, you drew a huge crowd. So it's five star. Conference muted.

All right. Mr. Heady, hit five star as well. Mr. Scheinberg, if you want to be heard, hit five star as well. Mr. Scheinberg, if you want to be heard, hit five star. Oh, okay, hold on. Thank you, Your Honor. Sid Shearberg on behalf of Margo.

I apologize I can't put my time on yet. All right. Mr. Scott, did you hit five star? I did, Your Honor. I just wanted to make it appearance. I don't know if I'll be speaking, but just in case I'd like it. Brendan Scott of Quaidstett, Winters, Drell, Southern, and Stevens on behalf of B.H.

Multicom Corp, B.H. Multicolor Corp. unique designs ink and richland green pink all right thank you thank you all right go ahead mr martin thank you honor we received informal comments from the global debtors and their lenders relating to the interim cash collateral order we also work collaboratively with mr scott on reservation language you would like read into the record uh relating to uh the consignment claims before i get started dinner i'd go ahead admit exhibit 402-1 and 402-2-2-2, which is the first-day declaration and the second approved budget. All right.

Does anyone object to the admission of Mr. Hedey's declaration at 402-1 as his direct testimony in connection with this matter? Subject to cross-examination? Okay, hearing no objection, I will admit that as his direct testimony. Does anyone object to the admission of exhibit 4.0.4.2. 002-2, which is the budget, which was also filed at docket number 399-1. All right, hearing no objection, exhibit 402-2 will be admitted. Thank you, Your Honor. The second interim cash collateral order is substantially the same as the first interim order

with similar escrow mechanics relating to expense reimbursements for the global debtors as we work through the appropriate amount of expense reimbursements that should be going from these estates to the global debtors of states. What we would propose in this order, Your Honor, is if we could have another interim hearing on our around February 5 subject to the court schedule, if there's no agreement with the global debtors on the reimbursement mechanics at that time, We'll come back on the 5th. If there is an agreement, we would propose to upload an amended order that sets our final cash collateral hearing to be consistent with the other second day hearings that are currently scheduled for February 13. I believe the hearing date section of the proposed order at docket number 399-1 is that paragraph 33. Yes.

So February 5th is my panel day, my Chapter 13 panel day. So it goes to be four or six. I think that that was just a rough estimate. Would February 5th, 6th work for you, or February 5th is? February 6th is fine unless any of the other parties object to that date. All right. Anyone have a problem with February 6th? All right, why don't we do 9 a.m. on February 6, so I will put that in the proposed form of order.

Thank you, Your Honor. We'll also prepare notice of hearing. The statement role, you're making those changes, Your Honor, that Mr. Scott would like to read into the record is that as it relates to consignment counterparties, the party is right as to the priority of their liens, including purchased money, security interests and consigned goods against the term lender's collateral. is preserved. All right. Anyone else wish to be heard on the cash collateral order? I did have a chance to review the red line. Thank you for submitting that.

And I didn't have any questions, although I did notice that it was a second interim. And then, Your Honor, as far as, I guess what I'll say are coming attractions for these debtors. Earlier today, we filed an emergency motion to retain a liquidation consultant, which the court generallyly allowed us to set for hearing tomorrow morning at 830. That was in accordance with the milestone set forth in the first cash collateral order that this court finds. The debtors in consultation with accordion are also pursuing in parallel track bidding procedures, and we are receiving inbound inquiries from parties interested in making more of a bulk purchase of the debtor's assets. And we anticipate in the coming days filing a motion to establish bidding procedures as well to pursue parallel tracks of a liquidation process and a sale process.

All right. I'm going to go ahead and put the objection deadline on February 2nd, so which is that Monday of the Friday. So that will give people, although they've, from the filing, they will have had sufficient time, but just. give people a little bit more time. All right, does anyone else, again, does anyone else wish to be heard with respect to the cash collateral in the second interim cash collateral order? All right, I had reviewed the form of motion and the order before you all came on, and I think it's proper exercise of the debtors business judgment. There is the escrow mechanism for the $175,000. And, So we'll have a, I guess, a second interim hearing or a second hearing on the, well, yeah,

third hearing on this now on February 6th at 9 a.m. And all right, and so I'll see you bright and early tomorrow. Thank you. Yeah. And the reason I changed it is because I have a confirmation hearing starting at 9 tomorrow. I think it's not going to go long, but I didn't want, I mean, I wanted the hearing tomorrow, I wanted to give enough notice, but the hearing today, there's been plenty of notice, so that's why I moved there.

So thank you for accommodating that. I appreciate the accommodation on the short notice as well as well. All right. So we'll be, we'll stand in recess till 8.30 tomorrow morning. Thank you. Thank you.