UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

PALM BEACH DIVISION

www.flsb.uscourts.gov

IN RE: CASE NO.: 19-18585-MAM

Chapter 11

MERIDIAN MARINA & YACHT CLUB

OF PALM CITY, LLC 

Debtor.

 /

MARTIN COUNTY MARINE HOLDINGS LLC’S OBJECTION TO 

DEBTOR’S PROPOSED USE OF CASH COLLATERAL 

Martin County Marine Holdings., LLC’s, ( “Marine Holdings”) a secured creditor

herein, through undersigned counsel, files this Objection to Debtor’s Proposed Use of Cash

Collaeteral and in support thereof states as follows:

1. On June 27, 2019, (the "Petition Date") Meridian Marina & Yacht Club of Palm

City, LLC ( the “Debtor”), filed a voluntary petition under Chapter 11, Title 11 of the United

States Code. 

2. The Debtor is, a Florida Limited Liability Company, and is successor by Merger

to the former Debtor, Martin County Marine Corp., Case No. 12-11819- EPK, and operates the

business known as Martin County, Marina. 

3. Marine Holdings, the secured creditor is a Florida Limited Liability Company

with offices in Orange County Florida. Marine Holding is a secured creditor by reasons of a note

secured by a first mortgage on all of the Debtor’s real property and an Assignment of Rents

which are now reduced to a Default Final Judgment dated December 18, 2018 in the amount of

$4,417, 341.17 which continues to bear interest at the prevailing statutory rate

4. Based upon Debtor’s Monthly Operating Reports for the months ending January

 30, 2020 through April 30, 2020 Debtor’s cash receipts have fallen every month in 2020. 

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Despite the decreasing revenues Debtor’s budget reflects an increase in receipts in amounts not

even achieved in 2019. Despite a lack of income Debtor has increased its proposed budget for

insurance by $2,000 per month and increased its budget for repairs by $500.00 per month.

5. Debtor spends approximately $4,697.79 each month on “fuel for sale” but the sale

of the fuel is not reflected on Debtor’s monthly operating reports. 

6. Debtor’s insurance expense was $13,156.32 in April 2020 which includes a “life

 insurance premium”, but no workman’s compensation insurance. The average amount the

Debtor is spending on insurance over the ten (10) month period covered by the Debtor’s monthly 

reports is $11,600.27. The declaration page produced by the Debtor does not provide for

building or windstorm coverage and does not meet the requirement of Debtor’s loan. 

despite repeated requests for same during the week of June 8-12, 2020. The Debtor is

supposed to have a commercial property replacement insurance policy for about $2 million

replacement cost coverage. 

7. Based upon the monthly operating reports (“MOR”) payroll for April was

 $22,287.11 in April. However, payroll taxes for the ten months this case has been pending is

only $14, 970. Payroll taxes are either not being made or under reported. There are no sales

taxes being reflected on the MORS.

8. Based upon the MORs there is no money expended on auto, dues, events, fire &

 security alarm, lawn maintenance ,or office supplies other than postage or repairs to the

premises.

9. Debtor’s greatest expense is for parts in the amount of $32,630.21, shop supplies

 $46.533.06 and fuels for sale $46,977.90. These items are not on the budget. Presumably these

repairs are generating income which is not reported. 

 10. Since the Debtor has not provided proof of insurance coverage and the Debtor’s

monthly operating reports do not support the proposed budget, the Secured Creditor objects to

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the further use of cash collateral based on the proposed budget. 

 WHEREFORE the Debtor respectfully requests an Order denying use of cash collateral

 until Debtor provides proof of adequate insurance and a realistic budget and for such further

relief as the Court deems just.

I HEREBY CERTIFY that a true and correct copy of the foregoing was furnished by

electronic mail to the Office of the United States Trustee on this 15th day of June, 2020, and that

I am admitted to the Bar of the United States District Court for the Southern District of Florida

and I am in compliance with the additional qualifications to practice in this Court as set forth in

Local Rule 2090-1 (A).

SUSAN D. LASKY, PA

Attorney for Debtor

320 S.E. 18th Street

Fort Lauderdale, FL 33316

(954) 400 7474 

Sue@SueLasky.com

By: /S/ SUSAN D. LASKY 

SUSAN D LASKY, ESQ.

Florida Bar No. 451096

John P Carrigan on behalf of Creditor Martin Downs Property Owners' Association, Inc.

jpc@reblawpa.com, mmj@reblawpa.com

Heidi A Feinman on behalf of U.S. Trustee Office of the US Trustee

Heidi.A.Feinman@usdoj.gov

Dana L Kaplan on behalf of Debtor Meridian Marina & Yacht Club of Palm City, LLC

dana@kelleylawoffice.com,

tina@kelleylawoffice.com;cassandra@kelleylawoffice.com;kristina@kelleylawoffice.com;debbie@kelley

lawoffice.com;craig@kelleylawoffice.com

Craig I Kelley on behalf of Debtor Meridian Marina & Yacht Club of Palm City, LLC

craig@kelleylawoffice.com,

tina@kelleylawoffice.com;cassandra@kelleylawoffice.com;kristina@kelleylawoffice.com;debbie@kelley

lawoffice.com;dana@kelleylawoffice.com

Office of the US Trustee

USTPRegion21.MM.ECF@usdoj.gov

Alan B Rose, Esq on behalf of Creditor MRACHEK, FITZGERALD ROSE KONOPKA THOMAS & WEISS, P.A.

arose@mrachek‐law.com, manderson@mrachek‐law.com

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