American court hearing recordings and interviews - QVC Group - Listen to the bankruptcy hearing held July 21, 2026 starting 10:30 am

Episode Date: July 21, 2026

discussing QVC's bank accounts including the QVC Chinese bank account(s)

Good morning. It's Tuesday, July 21st, 2026. We're here in case number 26-90447, QBC Group, Inc. on the second emergency motion pursuant to Section 345. So please make sure to go to my webpage and note your appearance, but why don't we get appearances of those on the line? Good morning, Your Honor. Can you hear me? I can. Gabriella Hensley, if you want to know, I'll be presenting. the motion today on our side. All right, thank you. Ms. Whitworth? Yes, good morning, Judge Pettus. General Whitworth for the U.S. trustee.

All right. Anyone else wish to make an appearance? All right. Go ahead, Ms. Hensley. Good morning, Your Honor. We filed the motion seeking a further extension of our obligations to comply with Section 345B of the Bankruptcy Code on July 16th. We filed a motion on an emergency basis because our current deadline expired that day and we needed to do so to gain the benefits of the bridge order. Your Honor, as you know, it's been a very busy few months in this case, despite this prepackaged nature, despite all of the activity in the case, the debtors have been working diligently to bring their bank accounts in compliance with the requirements of Section 345.

we are down to just five accounts, and I flag that because I believe the motion we filed said that we had four accounts. The reason for the discrepancy is one of the accounts in question is a Citibank account that is a collateral account under the DIP facility, and it supports our trade letters of credit, so the balance on that account fluctuates my understanding is even daily. So sometimes that account is compliant potentially because it's under FDF. IC limits, other times that account goes over FDIIC limits and Citibank is not an authorized depository. So that fifth account, I just wanted to make sure it was on your honor's radar. But we're down to only five non-compliant accounts compared to eight non-compliant accounts

when we filed emergency requests for an extension. The remaining accounts either hold the minimis balances or are accounts that we are actually required to keep the money in. So there's the city bank account. We also have another collateral account where we're under contract with a counterparty to keep the money in that account. We've been in touch with the U.S. trustee, the U.S. trustee, Ms. Whitworth will surely speak for herself, but we've been partnering closely with the U.S. trustee's office on our efforts and just need a bit more time. Of course, hopefully we're no longer in Chapter 11 at the end of this period,

but we need to work through bonding and negotiating with our counterparties to the extent that we remain in Chapter 11 at the end of August. So unless your honor has any questions, that's all I have to say in the motion. All right. Ms. Whitworth? Thank you, Your Honor. Thank you, Your Honor. Thank you, Your Honor. I can let the court note that the debtors have been working diligently.

and I believe there was an exhibit that was filed kind of a status shoot for the court. I asked the debtors to file that so the court could get an idea of what we were talking about and the announcing bottle. This is not an example of a debtor trying to run out the clock to attend a de facto waiver. I believe that in my experience today with the debtors' team has been that they have diligently attempted to comply. As you are well aware

in your prior life, you know, how difficult it can be to get those foreign bonds. And if you look at the I sound like I'm trying to make the case for the better I just want to call the court's attention to the

facts behind the case the pleading the amount held in China are not exorbitant. And again, it does take time. And while I'm not in a position, Your Honor, to agree to the extension at this point in time, based on the evidence and the efforts of the debtor, that the U.S. trustee did not oppose it.

Um, so I just, that's, that's the position that I have to tell you, Judge. Thank you. All right. Ms. Hensley, anything further? No, your honor, but to the extent possible, Ms. Whitworth and I spoke, we don't have a witness to bring that exhibit into evidence, but I believe that all are agreed that it can be part of the record if your honor does, does not mind entering it on that basis. All right, so the exhibit is attached to the motion at 5-717 until it's get it.

Your Honor, the exhibit was actually filed with our witness and exhibit. What this morning, the exhibit to the motion would have been a proposed form of order. Okay. All right, you're right. So. I did look at this exhibit this morning, and I did look at this morning and I immediately ignored it because I just couldn't read it. It was so little. So let me.

It's always hard when you take Excel files and turn them into PDF if there's any way we can make that easier for you. No, no, no, no. It's okay. It's okay. There are a lot of authorized depositories like Wells and Bank of America, so. Yes, the exhibit includes a notes column, and we included all of the accounts and their compliance status, including a notation in the right-most column, where it reflects the number two, if that's an account that changed since the last update, again, while the

font is small, we were trying to make it easy to just show that we've been steadily working on it background. All right, thank you. So we'll admit exhibit 3-734-1. Any objection to the admission of that exhibit? No, Judge. It will be admitted. So I did have a chance to review the fact that there has been progress made, and the debtor

has done a good job. So I'm going to go ahead and enter. enter the order. Thank you, Your Honor. All right, so I've entered the order and sent it to docketing. All right, anything else we could do? No, Your Honor, I think a subset of us

will be seeing you again this afternoon. For now, that's all for now. I just wanted to have this hearing in the morning because it's kind of a discreet issue. Appreciate it. Thank you so much. All right, we'll be in recess to my 11 o'clock hearings. Thank you. Thank you, George.