UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

In re:

SEVEN STARS ON THE HUDSON CORP CASE NO.: 19-17544-RBR

CHAPTER 11

Debtor /

EXPEDITED MOTION TO USE CASH COLLATERAL

EXPEDITED HEARING REQUESTED: Debtor requires the use of the cash 

collateral in order to continue operating.

• Debtor is seeking authority to use the cash collateral of secured 

Creditor Wells Fargo Bank.

• The cash collateral is proceeds earned from Debtor’s business.

• Debtor is requesting to use all cash collateral for its operation until a 

final hearing on this motion.

• Debtor has attached a budget, pursuant to the Court’s Guidelines for 

Motion Seeking Authority to Use Cash Collateral and Motion Seeking 

Approval of Postpetition Financing (Exhibit “A”).

• Debtor has attached an interim order, pursuant to the Court’s 

Guidelines for Motion Seeking Authority to Use Cash Collateral and Motion 

Seeking Approval of Postpetition Financing (Exhibit “B”)

Seven Stars on the Hudson Corp, (the “Debtor”), files this Expedited Motion for Authority 

to Use Cash Collateral Pursuant to 11 U.S.C. § 363 and for Final Hearing (the “Motion”), and 

states as follows:

BACKGROUND

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 1 of 12
1. On June 6, 2019, the Debtor filed a voluntary petition for relief under chapter 11 of 

the Bankruptcy Code. The Debtor is operating its business and managing its assets as a debtor in 

possession. No trustee, examiner, or statutory committee has been appointed. 

2. The Debtor is a Florida corporation that manages a trampoline amusement park.

The Debtor’s assets are subject to a blanket lien in favor of Wells Fargo Bank, N.A. (“Wells 

Fargo”). Wells Fargo is currently owed $1,270,107.66. The Debtor reserves the right to challenge 

the validity, priority and extent of the Wells Fargo lien as this case progresses.

3. The Debtor’s proposed income and expenses for a three month period are set for in 

the monthly budget (the “Budget”) attached hereto as Exhibit “A”.

4. The Debtor requires the use of cash collateral to fund necessary operating expenses 

of its business. As set forth below, the Debtor requests that the Court approve its use of cash 

collateral pursuant to the terms of the Budget, and further authorize the Debtor to (a) exceed any 

line item on the Budget by an amount equal to ten (10%) percent of each sum line item; or (b) to 

exceed any line item by more than ten (10%) percent so long as the total of all amounts in excess 

of all line items for the Budget to not exceed ten (10%) percent in the aggregate of the total Budget.

ARGUMENT

5. The Debtor’s use of property of its estate is governed by Code section 363, which 

provides in pertinent part that:

If the business of the debtor is authorized to be operated under 

section . . . 1108 . . . of this title and unless the court orders 

otherwise, the [debtor] may enter into transactions, including the 

sale or lease of property of the estate, in the ordinary course of 

business, without notice or a hearing, and may use property of the 

estate in the ordinary course of business without notice or a hearing.

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 2 of 12
11 U.S.C. § 363(c)(1). A debtor in possession has all of the rights and powers of a trustee with 

respect to eh property of the estate, including the right to use property of the estate in compliance 

with § 363. See 11 U.S.C. § 1107(a).

6. When a chapter 11 debtor in possession is authorized to operate its business, it may 

use property of the estate in the ordinary course of business, but is prohibited from using cash 

collateral absent consent of the secured creditor or court authorization. 11 U.S.C. § 363(c). The 

Code defines “cash collateral” as “cash, negotiable instruments, documents of title, securities, 

deposit accounts, or other cash equivalents whenever acquired in which the estate and an entity 

other than the estate have an interest...” 11 U.S.C. § 363(a). 

7. It is appropriate for the Court to authorize the Debtor to use cash collateral because 

Wells Fargo is being adequately protected and such use will preserve the going concern value of 

the estate.

A. Wells Fargo is Adequately Protected

8. The Bankruptcy Code does not define “adequate protection” but does provide a 

non-exclusive list of the means by which a debtor may provide adequate protection, including 

“other relief” resulting in the “indubitable equivalent” of the secured creditor’s interest in its 

collateral. See 11 U.S.C. § 361; see In re Potvin Lumbar Company, Inc., 24 B.R. 54 (Bankr. D. 

Vt. 1982) (ordering that the debtor could use cash collateral, and finding that the bank was 

adequately protected because the total value of the debtor’s personal property exceeded the bank’s 

indebtedness). 

9. Adequate protection is to be determined on a case-by-case factual analysis. See 

Mbank Dallas, N.A. v. O’Connor (In re O’Connor), 808F.2d 1393, 1396 (10th Cir. 1987); In re 

Martin, 761 F.2d 472 (8th Cir. 1985); see also S. Rep. No. 95-989, 95th Cong., 2d Sess. 54 (1978). 

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 3 of 12
For example, O’Connor states that “[i]n order to encourage the Debtors’ efforts in the formative 

period prior to the proposal of a reorganization, the court must be flexible in applying the adequate 

protection standard.” 808 F.2d at 1396. (citations omitted).

10. Adequate protection is meant to ensure that a secured creditor receives the value 

for which it originally bargained pre-bankruptcy. Swedeland Dev. Group., Inc., 16 F.3d 552, 564

(3d Cir. 1994) (citation omitted). The essence of adequate protection is to ensure the maintenance 

and continued responsibility of lien values during the interim between filing and confirmation in 

a case. In re Arriens, 25 B.R. 79, 87 (Bankr. D. Or. 1982).

11. The adequate protection provided from the Debtor to Wells Fargo consist of: (a) 

payments of $12,500.00 per month, and (b) replacement liens against the property of the Debtor 

of any use of Wells Fargo cash collateral, with such liens having the same seniority and entitled to 

the same level of priority as the priority of Wells Fargo’s liens against the Debtor’s property that 

existed prior to the petition date.

12. The Debtor’s requested use of cash collateral and the protections afforded to Wells 

Fargo herein are reasonable, appropriate, and sufficient to satisfy the legal standard of “adequate 

protection” and will serve to maintain the value of Wells Fargo’s alleged collateral.

B. Cash Collateral Use Will Preserve the Debtor’s Going Concern Value

13. The continued operation of the Debtor’s business will preserve its going concern 

value, enable the Debtor to capitalize on that value through a reorganization strategy, and 

ultimately facilitate the Debtor’s ability to confirm a chapter 11 plan. However, if the Debtor is 

not allowed to use cash collateral, it will be unable to operate.

14. It is well established that a bankruptcy court, where possible, should resolve issues 

in favor of preserving the business of the debtor as a going concern:

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 4 of 12
A debtor, attempting to reorganize a business under Chapter 11, 

clearly has a compelling need to use “cash collateral” in its efforts 

to rebuild. Without the availability of cash to meet daily operating 

expenses such as rent, payroll, utilities, etc., the congressional policy 

favoring rehabilitation over economic failure would be frustrated.

In re George Ruggiere Chrysler-Plymouth, Inc., 727 F.2d 1017, 1019 (11th Cir. 1984); see In re 

Stein, 19 B.R. 458, 460 (Bankr. E.D. Pa. 1982) (debtor permitted to use cash collateral when 

creditor was undersecured because such use was necessary to its continued operations and the 

creditor’s secured position can only be enhanced by the continued operation of the debtor’s 

business.

15. If the Debtor cannot use cash collateral, it will be forced to cease operation. By 

contrast, permitting cash collateral use will allow the Debtor to maintain operations and preserve 

the going concern value of its business which will inure to the benefit of all creditors.

WHEREFORE, the Debtor requests that this Court enter an order substantially in the form 

of the proposed order attached as EXHIBIT “B” (1) granting the Motion; (2) authorizing the 

Debtor’s use of cash collateral in accordance with the Budget and the terms set forth herein; (3) 

granting the replacement liens set forth above in connection with the Debtor’s use of cash 

collateral; (4) scheduling a final hearing; and (5) granting the Debtor such other and further relief 

as is just and proper.

[Remainder of Page Intentionally Left Blank]

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 5 of 12
Dated: June 6, 2019

By: /s/ Sonya Salkin Slott, Esq.

Sonya Salkin Slott, Esq.

FLBN 603910

The Salkin Law Firm

PO Box 15580

Plantation, FL 33318

954-423-4469

sonya@msbankrupt.com

Attorneys for Debtor

ATTORNEY CERTIFICATION

I HEREBY CERTIFY 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).

CERTIFICATE OF SERVICE

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

Notice of Electronic Filing by CM/ECF to all parties registered to receive such service in this 

case on June 6, 2019.

By: /s/ Sonya Salkin Slott, Esq.

Sonya Salkin Slott, Esq.

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 6 of 12
EXHIBIT A 

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 7 of 12
Seven Stars on the Hudson Corp

19‐Jun 19‐Jul 19‐Aug

Revenue $117,700.00 $133,750.00 $112,350.00Cost of Goods Sold (13,817.00) $ $ (16,090.00) $ (12,298.00)

Gross Profit $ 103,883.00 $ 117,660.00 $ 100,052.00

DisbursementsAdvertising and Marketing 2,500.00 $ $ 2,500.00 $ 2,500.00

Rebranding Costs 3,500.00 $ $ 3,500.00 $ 3,500.00

Bank Service/ Merchant Charges 3,300.00 $ $ 3,300.00 $ 3,300.00

Dues and Subscriptions Center Edge 950.00 $ $ 950.00 $ 950.00

Payroll Exp‐ Leased Employees 22,565.00 $ $ 26,202.00 $ 20,169.00

Printing and Postage 200.00 $ $ 200.00 $ 200.00Bookkeeping 630.00 $ $ 630.00 $ 630.00

Rent Expense 30,879.00 $ $ 30,879.00 $ 30,879.00

Sales Tax for Rent 1,791.00 $ $ 1,791.00 $ 1,791.00

Supplies 1,200.00 $ $ 1,200.00 $ 1,200.00

Park Maintenance 250.00 $ $ 250.00 $ 250.00

Telephone Expense 270.00 $ $ 270.00 $ 270.00

Utilities 2,374.00 $ $ 2,816.00 $ 3,059.00

Workers Comp 547.00 $ $ 306.00 $ 319.00

Sales Tax $7,700.00 $8,750.00 $7,350.00Total Disbursements $ (78,656.00) $ (83,544.00) $ (76,367.00)

Net Ordinary Income $ 25,227.00 $ 34,116.00 $ 23,685.00

Wells Fargo SBA (12,500.00) $ $ (12,500.00) $ (12,500.00)

Salary‐Jens (3,750.00) $ $ (3,750.00) $ (3,750.00)

Salary‐Eddy (3,750.00) $ $ (3,750.00) $ (3,750.00)

Net Income $ 5,227.00 $ 14,116.00 $ 3,685.00

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 8 of 12
EXHIBIT B 

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 9 of 12
Exhibit B

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

FORT LAUDERDALE DIVISION

In re:

SEVEN STARS ON THE HUDSON CORP CASE NO.: 19-17544-RBR

CHAPTER 11

Debtor /

INTERIM ORDER AUTHORIZING USE OF CASH COLLATERAL 

NUNC PRO TUNC TO JUNE 5, 2019 AND SETTING FINAL HEARING DATE

THIS MATTER came before the Court on Date and Time upon Debtor’s Expedited 

Motion to Use Cash Collateral Nunc Pro Tunc to June 5, 2019 (DE ) (the “Motion”). The Court, 

having reviewed the Motion, determined that the relief sought in the Motion is in the best interests 

of the Debtor, its estate, and all parties in interest, heard argument of counsel, finds that good cause 

exists to grant the Motion.

IT IS THEREFORE ORDERED:

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 10 of 12
1. The Motion is granted and approved on an interim basis pending a final order.

2. Debtor is authorized to use the cash collateral referenced in the Motion.

3. A copy of this Interim Order shall be served on the Notice Parties within three (3) 

business days from entry.

4. There shall be a carve-out in the budget for the inclusion of fees due the Clerk of Court 

or the U.S. Trustee pursuant to 28 U.S.C. § 1930.

5. This Interim Order is without prejudice to the rights of the parties to seek any further 

or different relief, or modification of this Interim Order, including, but not limited to, 

relief from the automatic stay.

6. Except as expressly provided herein, the rights, claims, and interests of the Debtor, any 

prepetition lender, and all other parties in interest are hereby reserved.

7. Notwithstanding the provisions of § 552(a) of the Bankruptcy Code, and in addition to 

the security interests preserved by § 552(b) of the Bankruptcy Code, the Debtor grants 

in favor of Wells Fargo, as security for all indebtedness that is owed by the Debtor to 

Wells Fargo, under the secured documentation, but only to the extent that Wells Fargo’s 

cash collateral is used by the Debtor, a post-petition security interest and lien in, to and 

against any and all assets of the Debtor, to the same extent and priority that Wells Fargo 

held a properly perfected pre-petition security interest in such assets; provided that, 

however, under no circumstances shall Wells Fargo have a lien on any causes of action 

arising under 11 U.S.C. §542 et seq., 547, 548, 549, 550, 551, or any of the Debtor’s 

assets that it did not have a right to pre-petition.

8. A final hearing shall be held on Date at Time at the Date at Time at the United States 

Courthouse, 299 E. Broward Blvd., Courtroom 308, Fort Lauderdale, Florida 33301, 

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 11 of 12
and any objections to Debtor’s use of cash collateral must be served on Debtor’s 

counsel two (2) business days prior to the final hearing.

###

Submitted by: Sonya Salkin Slott, Esq.

FLBN 603910

The Salkin Law Firm

PO Box 15580

Plantation, FL 33318

954-423-4469

sonya@msbankrupt.com

Mrs. Slott will serve a signed copy of the order on all interested parties and file a certificate of 

service with the Court.

Case 19-17544-RBR Doc 5 Filed 06/06/19 Page 12 of 12