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UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

IN RE: ) Chapter 11 

)

 ) Case No. 16-29208

ZIVKO KNEZOVIC, ) 

) Hon. Pamela S. Hollis

Debtor. ) Room 644

) Hearing Date: September 22, 2016

) Hearing Time: 10:00 a.m.

NOTICE OF MOTION

To: See Attached Service List

PLEASE TAKE NOTICE THAT on September 22, 2016 at 10:00 a.m., we shall appear 

before the Honorable Pamela S. Hollis, or any other Judge sitting in her stead in Courtroom No. 

644, 219 South Dearborn, Chicago, Illinois, at which time we shall present DEBTOR’S

EMERGENCY MOTION FOR USE OF CASH COLLATERAL (INTERIM HEARING), 

a copy of which is attached hereto a served upon you, and shall pray for the entry of an order in 

conformity with said pleading, at which time and place you may appear if you so see fit.

ZIVKO KNEZOVIC, Debtor

By: /s/ Ariel Weissberg 

 One of its attorneys

Ariel Weissberg, Esq. (Attorney No. 03125591)

Rakesh Khanna, Esq. (Attorney No. 06243244)

Devvrat Sinha, Esq. (Attorney No. 6314007)

Weissberg and Associates, Ltd.

401 S. LaSalle St., Suite 403

Chicago, Illinois 60605

T. 312-663-0004

F. 312-663-1514

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CERTIFICATE OF SERVICE

I, Ariel Weissberg, certify that on September 14, 2016, I caused to be served DEBTOR’S

EMERGENCY MOTION FOR USE OF CASH COLLATERAL (INTERIM HEARING) 

to be filed electronically. Notice of this filing was sent to all parties registered with the court’s 

ECF electronic transmission, including to the following parties:

Patrick S. Layng 

Office of the U.S. Trustee, Region 11

219 S Dearborn St

Room 873

Chicago, IL 60604-2027

USTPRegion11.ES.ECF@usdoj.gov

and on September 19, 2016 by electronic transmission to the following parties:

Urban Partnership Bank

c/o Taft, Stettinius & Hollister L.P.

Jillian S. Cole, Esq.

William Serritella, Esq.

11 E. Wacker, Suite 2800

Chicago, IL 60601

By Email: jcole@taftlaw.com

By Email: wserritella@taftlaw.com

First Midwest Bank

c/o Gomberg Sharfman Gold & Ostler

Ray Ostler, Esq.

208 S. LaSalle St., Suite 1410

Chicago, IL 60604

By Email: rostler@gsgolaw.com

Karlo M. Karacic, Esq.

161 N. Clark St., Suite 2500

Chicago, IL 60601

By Email: karlo@karaciclaw.com

Oxford Bank and Trust

c/o Dimonte & Lizak

Derek D. Samz, Esq.

216 W. Higgins Road

Park Ridge, IL 60068

By Email: dsamz@dimontelaw.com

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Boris Tomacic

161 N. Clark St., Suite 2500

Chicago, IL 60601

By Email: karlo@karaciclaw.com

1332 W. 82, LLC

c/o Karlo M. Karacic, Esq.

8254 S. Racine Avenue

Chicago, IL 60620

Walden Property Holdings II, LLC

c/o Karlo M. Karacic, Esq.

10500 South Walden Parkway

Chicago, IL 60643

By Email: karlo@karaciclaw.com

Walden Property Holdings, LLC

c/o Karlo M. Karacic, Esq.

10208 S. Walden Parkway

Chicago, IL 60643

By Email: karlo@karaciclaw.com

and September 19, 2016 to the following parties by the method so noted below:

Legal Department -- Legal Services Office MC5-500

Illinois Department of Revenue

101 West Jefferson

Springfield, IL 62794

By 1st Class Mail 

Illinois Department of Revenue 

Bankruptcy Section, Level 7−425 

100 W. Randolph Street 

Chicago, IL 60606

By Fax: 312-814-4045

District Director

Internal Revenue Service

230 S. Dearborn St., Room 2890

Chicago, IL 60604

By Personal Delivery

District Counsel

Internal Revenue Service

200 West Adams, Suite 2300

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Chicago, IL 60606

By Fax: 312-368-8713 

Kathryn Keneally

Tax Division (DOJ)

P.O. Box 55

Ben Franklin Station

Washington, DC 20044

By Fax: 202-514-5238

Internal Revenue Service 

PO Box 7346

Philadelphia, PA 19101-7346

By First Class U.S. Mail

U.S. Attorney

219 S. Dearborn Street

Chicago, IL 60604

By Personal Delivery

and on September 19, 2016 to the following parties by first class U.S. mail, postage prepaid:

Capital One

PO Box 5294

Carol Stream, IL 60197-5294

Chase Card Services

Cardmember Services

P.O. Box 15153

Wilmington, DE 19886-5153

Cook County Treasurer

118 N. Clark St., Room 112

Chicago, IL 60602

Hale Street Holdings, LLC

8254 S. Racine Ave.

Chicago, IL 60620

Home Depot Credit Services

P.O. Box 78011

Phoenix, AZ 85062-8011

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JPMorgan Chase

P.O. Box 90011871

Louisville, KY 40290-1871

_________ /s/ Ariel Weissberg_______________

Ariel Weissberg

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UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

IN RE: ) Chapter 11 

)

 ) Case No. 16-29208

ZIVKO KNEZOVIC, ) 

) Hon. Pamela S. Hollis

Debtor. ) Room 644

) Hearing Date: September 22, 2016

) Hearing Time: 10:00 a.m.

DEBTOR’S EMERGENCY MOTION FOR USE OF CASH COLLATERAL

(INTERIM HEARING)

NOW COMES Debtor, Zivko Knezovic (“Debtor”), by his attorneys, Ariel Weissberg, 

Devvrat Sinha and the law firm of Weissberg and Associates, Ltd. and as Debtor’s Motion for 

Use of Cash Collateral (Interim Hearing), states as follows:

I. INTRODUCTION

1. On September 13, 2016, Debtor filed a voluntary petition in the United States 

Bankruptcy Court for the Northern District of Illinois, Eastern Division seeking to reorganize 

under Chapter 11 of the Bankruptcy Code. Since then, Debtor has been managing his assets as a 

debtor-in-possession.

2. Debtor is engaged in the business of owning and managing, among other 

properties, the following real properties: (a) 8100 South Loomis, Chicago, Illinois (“Loomis 

Property”); (b) 1305 West 82nd Street, Chicago, Illinois (“82nd Street Property”); and, (c) 7928 

South Morgan, Chicago, Illinois (“Morgan Property”). 

3. The South Loomis Property is a commercial property of a basement and three 

floors with twelve (12) residential units. A recent rent roll is attached hereto and made a part 

hereof as Exhibit 1. The title to the Loomis Property is owned in a land trust (Chicago Title 

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Land Trust Company, not personally, but as trustee u/t/a dated 07/08/05 and known as trust 

number 1114552 (the "Land Trust"). One-third of the beneficial interest in the Land Trust is 

owned by Debtor, with Karlo Karacic and Boris Tomacic owning the balance of the beneficial 

interest in the Land Trust.

4. The 82nd Street Property is a commercial property comprising of four floors with

twelve (12) residential units. A recent rent roll is attached hereto and made a part hereof as 

Exhibit 2. The title to the 82nd Street Property is owned in the Land Trust.

5. The Morgan Property is a commercial property comprising of three floors with 

eleven (11) residential units. A recent rent roll is attached hereto and made a part hereof as 

Exhibit 3. The title to the Morgan Property is owned in the Land Trust.

6. On or about August 5, 2005, Debtor and co-borrowers, Karlo Karacic and Boris 

Tomacic (collectively, "Borrowers") borrowed $1,500,000.00 from ShoreBank (the "Loan") for 

business purposes. The Loan was evidenced by a promissory note executed by the Borrowers, 

dated August 5, 2005, in the principal amount of $1,500,000.00 (the "Note"). 

7. Contemporaneously with the execution of the Note, the Land Trust executed a 

mortgage in favor of ShoreBank on the Loomis Property, the 82nd Street Property and the 

Morgan Property (collectively, the Properties”) to secure the indebtedness due under the Note 

(the "Mortgage"). 

8. On or about August 20, 2010, ShoreBank was closed by the FDIC, and the FDIC 

was appointed as Receiver thereof. The FDIC, as Receiver for ShoreBank, succeeded to all 

rights, titles and powers and privileges of ShoreBank, pursuant to § 12 U.S.C. 1821 (c)(3)(a).

9. Thereafter, the FDIC assigned all of its interests in the Note and Mortgage to 

Urban Partnership Bank (“UPB”).

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10. Debtor initiated this bankruptcy case to reorganize and Debtor asserts that in the 

next 90 days, or less, Debtor will file a confirmable Plan of Reorganization and a Disclosure 

Statement. This Plan will propose that the Debtor retain ownership of the Properties, with 

payment in full to UPB and all of Debtor’s creditors.

11. Debtor has the need to use the proceeds of the rents generated from the Properties, 

which are encumbered by the first mortgage of UPB. These proceeds are the "cash collateral" of 

UPB.

12. Debtor needs to use these rent proceeds to pay the ordinary and necessary postpetition operating expenses of the Properties. Without the use of this cash collateral, Debtor

cannot operate the Properties or pay the expenses for the following: insurance, utilities, real 

estate taxes, maintenance and supplies. These ordinary and necessary expenses equal $4,070.00 

per month for the Loomis Property; $3,798.00 per month for the 82nd Street Property; and 

$3,727.00 per month for the Morgan Property. A budget setting forth the income and expenses 

for each of the Properties is appended hereto as Exhibit 4 (“Budget”).

13. Presently, Debtor has no realistic source of funds other than these rent proceeds to 

pay these operating expenses. Debtor would be severely prejudiced if he could not use the cash 

collateral representing the rent proceeds from the Properties. 

II. THE COURT SHOULD GRANT DEBTOR THE RIGHT 

TO USE CASH COLLATERAL

14. The Budget sets forth the uses of Debtor's rents, totaling approximately

$24,640.00 per month for each of the Properties, which Debtor must use on an emergency and 

interim basis, pending a final hearing on Debtor's use of cash collateral after notice to all 

creditors pursuant to FRBP 2002; and, on a continuing monthly basis pursuant to the entry of an 

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order approving Debtor's use of cash collateral on a final basis.

15. Debtor proposes that UPB may be entitled to certain protections for the use of this 

cash collateral, including but not limited to the following:

A. Debtor is willing to pay monthly payments in the amount of $3,100.00, 

which shall be applied to the outstanding interest, principal and expenses 

due to the UPB, and 1/12th of the estimated annual real estate taxes for the 

Loomis Property, the 82nd Street Property and the Morgan Property;

B. The right to inspect the Loomis Property, the 82nd Street Property and the 

Morgan Property and upon 24 hours prior written notice to Debtor; and 

C. An administrative priority claim in accordance with Section 507(b) of the 

Bankruptcy Code to the extent that "adequate protection" provided to the 

Debtor pursuant to this Motion proves inadequate to protect the Debtor’s 

interest in the cash collateral.

16. The foregoing payments and rights are sufficient to protect the interests of UPB 

and satisfies the requirements of Sections 361 and 362 of the Bankruptcy Code, among other 

reasons, because Debtor is currently operating profitably, and the value of the Loomis Property, 

the 82nd Street Property and the Morgan Property is not declining. Debtor projects that the 

revenues from the Properties will remain at least constant, and that the operating expenses of the 

Properties will not increase, except for certain improvements the Debtor will make to the 

Properties in the future. 

17. This court has jurisdiction over this case pursuant to 28 U.S.C. Section 1334(a) 

and this is a "core matter" pursuant to 28 U.S.C. Section 157(b)(2)(M).

18. In light of the foregoing, this Court should grant Debtor the use of the rent 

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proceeds from the Properties on an interim basis pursuant to the Budget; and, after notice to all 

creditors, at a final hearing to be set by the court, the use of cash collateral pursuant to the 

aggregate of the Budget. Also, this Court should grant payments to UPB, as set forth in 

paragraph 15(A) of this Motion pursuant to 11 U.S.C. Sections 361 and 362.

WHEREFORE, the Debtor, Zivko Knezovic, prays that this court enter an order as 

follows:

(a) allowing Debtor the interim use of his cash collateral subject to a final hearing; 

(b) allowing Debtor to pay Urban Partnership Bank the payments provided in 

paragraph 15(a), above; 

(c) setting a final hearing for Debtor’s use of cash collateral; and,

(d) for such other and further relief as this Court deems just and proper.

ZIVKO KNEZOVIC, Debtor

By: /s/ Ariel Weissberg 

 One of his attorneys

Ariel Weissberg, Esq. (No. 03125591)

Rakesh Khanna, Esq. (No. 06243244)

Devvrat Sinha, Esq. (No. 6314007)

Weissberg and Associates, Ltd.

401 S. LaSalle St., Suite 403

Chicago, IL 60605

T. 312-663-0004

F. 312-663-1514

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