UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA 

MIAMI DIVISION 

www.flsb.uscourts.gov

In re: 

 Chapter 11 

IT’SUGAR FL I LLC, Case No. 20-20259-RAM 

IT’SUGAR LLC, Case No. 20-20261-RAM 

IT’SUGAR ATLANTIC CITY LLC, Case No. 20-20263-RAM 

IT’SUGAR FLGC LLC, Case No. 20-20264-RAM 

 (Joint Administration pending) 

Debtors. 

_______________________________/

DEBTORS’ EMERGENCY MOTION FOR AUTHORIZATION TO (I) CONTINUE 

THEIR INSURANCE PROGRAMS; AND (II) PAY ALL INSURANCE OBLIGATIONS 

(Emergency Hearing Requested) 

Basis for Requested Emergency Hearing 

The Debtors respectfully request that the Court conduct a hearing on this Motion 

consistent with Local Rule 9013-1(F). The Debtors operate a retail candy 

business requiring certain insurance to remain in place. It is critical that the 

Debtors obtain immediate approval to pay insurance premiums. Absent the ability 

to pay insurance premiums, the Debtors will be unable to operate their business 

and creditors and parties in interest will be severely prejudiced. In contrast, 

approval of the insurance premium payments will enable the Debtors to continue 

their operations and allow for an orderly reorganization. The Debtors respectfully 

request that the Court waive the provisions of Local Rule 9075-1 (B), which 

requires an affirmative statement that a bona fide effort was made in order to 

resolve the issues raised in this Motion, as the relief requested herein is urgent in 

nature and does not lend itself to advance resolution. 

 It’Sugar FL I LLC, It’Sugar LLC, It’Sugar Atlantic City LLC, and It’Sugar FLGC LLC, 

(“It’Sugar” or “Debtors”) by and through undersigned counsel, and pursuant to 11 U.S.C. §§ 

105(a), 363(b), and 503(b)(1) file this motion (“Motion”) authorizing, but not directing, the 

Debtors to (i) maintain their existing insurance policies; and (ii) pay all associated insurance 

obligations. In support, the Debtors respectfully state as follows: 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 1 of 13
 2

I. Jurisdiction and Venue 

1. This Court has jurisdiction over this Motion pursuant to 28 U.S.C. §§ 157 and 1334. 

This is a core proceeding pursuant to 28 U.S.C. § 157(b). Venue is proper in this District pursuant 

to 28 U.S.C. §§ 1408 and 1409. 

II. Background 

2. On September 22, 2020, (“Petition Date”), the Debtors filed voluntary petitions 

under Chapter 11 of the United States Bankruptcy Code. 

3. The Debtors are operating their business and managing their affairs as debtors in 

possession. 11 U.S.C. §§ 1107(a) and 1108. 

4. The Debtors operate as a single business and are known throughout the industry as 

It'Sugar. It'Sugar is a specialty candy retailer whose products include bulk candy, candy in giant 

packaging, and licensed and novelty items. It'Sugar’s portfolio includes approximately 100 retail 

locations across 28 states. 

III. The Debtors’ Insurance Programs 

5. In connection with the operation of its business, the Debtors maintain various 

insurance policies. Attached as Exhibit A is a Schedule of Insurance Policies, describing the 

insurance policies the Debtors hold (“Insurance Policies”). 

6. As set forth on Exhibit A, the Insurance Policies include coverage for general 

liability, automobile liability, and umbrella liability. 

7. As of the Petition Date, the Debtors are current on all premium obligations arising 

under the Insurance Policies (“Insurance Obligations”). 

8. The policies are essential to the ongoing operation of the Debtors’ business. 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 2 of 13
 3

IV. Relief Requested 

9. The Debtors request authority, but not direction, pursuant to sections 105(a), 

363(b), and 503(b) of the Bankruptcy Code, to (i) maintain their existing Insurance Policies; and 

(ii) pay all Insurance Obligations arising thereunder or in connection therewith, whether arising 

prepetition or postpetition. 

V. Basis for Relief 

10. The Court has authority pursuant to §§ 503(b), 363(b) and 105(a) of the Bankruptcy 

Code to grant the relief requested herein. Section 503(b)(I) of the Bankruptcy Code provides that, 

“[a]fter notice and a hearing, there shall be allowed, administrative expenses [ ], including . . . the 

actual, necessary costs and expenses of preserving the estate.” 11 U.S.C. § 503(b)(1)(A). 

Accordingly, the Court may authorize the Debtors to use estate funds to pay any Insurance 

Obligations arising or relating to the period after the Petition Date. 

11. Pursuant to § 363(b) of the Bankruptcy Code, the Court may also authorize the 

Debtors to pay Insurance Obligations arising or relating to the period before the Petition Date. See 

In re Ionosphere Clubs, Inc., 98 BR. 174, 175 (Bankr. S.D.N.Y. 1989) (authorizing payment of 

certain prepetition obligations under section 363(b)). Section 363(b) provides that "the trustee, 

after notice and a hearing, may use, sell, or lease, other than in the ordinary course of business, 

property of the estate." 11 U.S.C. § 363(b)(l). To approve the use of a debtor's assets outside the 

ordinary course of business under § 363(b), a court must find that a "good business reason" exists 

for the use of such assets. See, e.g., Official Comm. of Unsecured Creditors v. Enron Corp. (In re 

Enron Corp.), 335 B.R. 22,27-28 (S.D.N.Y. 2005) (quoting In re Lionel Corp., 722 F.2d 1063, 

1071 (2d Cir. 1983)). 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 3 of 13
 4

12. The business judgment rule is satisfied where "'the directors of a corporation acted 

on an informed basis, in good faith and in the honest belief that the action taken was in the best 

interests of the company."' Official Comm. of Subordinated Bondholders v. Integrated Res., Inc. 

(In re Integrated Res., Inc.), 147 B.R. 650, 656 (S.D.N.Y. 1992) (quoting Smith v. Van Gorkom, 

488 A.2d 858, 872 (Del. 1985)), appeal dismissed, 3 F.3d 49 (2d Cir. 1993). "Where the debtor 

articulates a reasonable basis for its business decisions (as distinct from a decision made arbitrarily 

or capriciously), courts will generally not entertain objections to the debtor's conduct." Comm. of 

Asbestos-Related Litigants v. Johns-Manville Corp. (In re Johns-Manville Corp.), 60 B.R. 612, 

616 (Bankr. S.D.N.Y. 1986). 

13. Additionally, the Court has the authority, pursuant to its equitable powers under 

§105(a) of the Bankruptcy Code, to authorize the Debtors to pay or otherwise satisfy any Insurance 

Obligation because such payments are necessary for the Debtors to carry out their fiduciary duties 

under §1107(a) of the Bankruptcy Code. Section 1107(a) "contains an implied duty of the debtorin-possession” to act as a fiduciary to “protect and preserve the estate, including an operating 

business' going-concern value,” on behalf of the debtor's creditors and other parties in interest. In 

re CEI Roofing, Inc., 315 B.R. 50, 59 (Bankr. N.D. Tex. 2004) (quoting In re CoServ, L.L.C., 273 

B.R. 487, 497 (Bankr. N.D. Tex. 2002)); see also Unofficial Comm. of Equity Holders v. 

McManigle (In re Penick Pharm., Inc.), 227 B.R. 229, 232-33 (Bankr. S.D.N.Y. 1998) ("upon 

filing its petition, the Debtor became debtor in possession and, through its management . . . was 

burdened with the duties and responsibilities of a bankruptcy trustee"). Section 105(a) empowers 

the Court to “issue any order, process, or judgment that is necessary or appropriate to carry out the 

provisions” of the Bankruptcy Code. 11 U.S.C. § 105(a); see Schwartz v. Aquatic Dev. Group, Inc. 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 4 of 13
 5

(In re Aquatic Dev. Group, Inc.), 352 F.3d 671, 680 (2d Cir. 2003) (“it is axiomatic that bankruptcy 

courts are ‘courts of equity, empowered to invoke equitable principles to achieve fairness and 

justice in the reorganization process’”) (quoting In re Momentum Mfg. Corp., 25 F.3d 1132, 1136 

(2d Cir. 1994)). 

14. It is well-established that courts consistently have permitted postpetition payment 

of prepetition obligations where necessary to preserve or enhance the value of a debtor's estate for 

the benefit of all creditors. See, e.g., Miltenberger v. Logansport, C&S W.R. Co., 106 U.S. 286, 

312 (1882) (payment of pre-receivership claim prior to reorganization permitted to prevent 

"stoppage of [crucial] business relations"). The modern application of this “doctrine of necessity” 

is largely unchanged from the United States Supreme Court’s reasoning in Miltenberger. See 

Dudley v. Mealey, 147 F.2d 268, 271 (2d Cir.) (extending doctrine for payment of prepetition 

claims beyond railroad reorganization cases), cert. denied, 325 U.S. 873 (1945); Mich. Bureau of 

Workers' Disability Comp. v. Chateaugay Corp. (In re Chateaugay Corp.), 80 B.R. 279, 285-86 

(S.D.N.Y. 1987) (approving lower court order authorizing payment of prepetition wages, salaries, 

expenses, and benefits); In re Lehigh & New Eng. Rv., 657 F.2d 570, 581-82 (3d Cir. 1981) (“[I]n 

order to justify payment under the ‘necessity of payment’ rule, a real and immediate threat must 

exist that failure to pay will place the continued operation of the [debtor] in serious jeopardy.”). 

15. The “[doctrine of necessity] recognizes the existence of the judicial power to 

authorize a debtor in a reorganization case to pay pre-petition claims where such payment is 

essential to the continued operation of the debtor.” In re Ionosphere Clubs, Inc. 98 B.R. 174, 176 

(Bankr. S.D.N.Y. 1989); see also In re Just for Feet, Inc., 242 B.R. 821, 826 (D. Del. 1999) (noting 

that where the debtor “cannot survive” absent payment of certain prepetition claims, the “doctrine 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 5 of 13
 6

of necessity” should be invoked to permit payment); In re NVR L.P., 147 B.R. 126, 127 (Bankr. 

E.D. Va. 1992) (“[T]he court can permit pre-plan payment of a pre-petition obligation when 

essential to the continued operation of the debtor.”). Indeed, the “doctrine of necessity” functions 

in Chapter 11 reorganization as a mechanism by which the Court can exercise its equitable power 

to allow payment of critical prepetition claims not explicitly authorized by the Bankruptcy Code. 

See In re Boston & Me. Corp., 634 F.2d 1359, 1382 (1st Cir. 1980) (recognizing “existence of a 

judicial power to authorize trustees ... to pay claims [for] goods and services indispensably 

necessary” to debtors’ continued operation); In re Structurelite Plastics Corp., 86 B.R. 922, 931 

(Bankr. S.D. Ohio 1988) (“[A] per se rule proscribing the payment of pre-petition indebtedness 

may well be too inflexible to permit the effectuation of the rehabilitative purposes of the Code."). 

Accordingly, the purpose of the “doctrine of necessity” parallels the ultimate goal of Chapter 11: 

“facilitating the continued operation and rehabilitation of the debtor.” In re Ionosphere Clubs, Inc., 

98 BR. at 176. 

16. Sound business reasons exist for the Debtors to maintain the Insurance Policies as 

it is in the best interests of its estate, employees, and creditors. The Debtors cannot operate their 

business without the Insurance Policies and any interruption in the Debtors’ insurance coverage 

would have a substantially adverse impact upon the Debtors’ ability to maintain their business 

operations and mitigate their liabilities. For instance, inability to pay any Insurance Obligation 

could result in one or more of the Insurance Carriers declining to renew an Insurance Program or 

refusing to enter into new insurance agreements with the Debtors in the future. If the Insurance 

Programs lapse without renewal, the Debtors could be exposed to substantial liability to the 

detriment of all parties in interest. Accordingly, the continuation of the Insurance Programs and 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 6 of 13
 7

the ability to pay, in the Debtors' discretion, all Insurance Obligations arising under the Insurance 

Programs is essential to preserve the Debtors' business and the value of the Debtors' estates for all 

parties in interest. In addition, in order to comply with the guidelines of the Office of the United 

States Trustee, the Debtors must maintain the Insurance Programs. 

17. A proposed order is attached as Exhibit B. 

VI. Reservation of Rights 

18. Nothing within this Motion is intended or should be construed as an admission as 

to the validity of any claim against the Debtors, a waiver of the Debtors’ right to dispute any claim, 

or an approval or assumption of any agreement, contract, or lease under Bankruptcy Code § 365. 

The Debtors expressly reserve their right to contest any claim related to the relief sought herein. 

Likewise, if the Court grants the relief sought herein, any payment made pursuant to an order of 

the Court is not intended to be nor should it be construed as an admission as to the validity of any 

claim or a waiver of the Debtors’ rights to subsequently dispute such claim. 

VII. Waiver of Bankruptcy Rule 6004(a) and 6004(h) 

19. To implement the foregoing successfully, the Debtors request that the Court enter 

an order providing that notice of the relief requested herein satisfies Bankruptcy Rule 6004(a) and 

that the Debtors have established cause to exclude such relief from the 14-day period under 

Bankruptcy Rule 6004(h). 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 

 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 7 of 13
 8

WHEREFORE, the Debtors respectfully request entry of an Order in the form attached as

Exhibit B granting the relief requested herein and granting such other and further relief this Court 

deems fair and equitable. 

 Dated: September 23, 2020. 

 s/ Michael S. Budwick 

Michael S. Budwick, Esquire 

Florida Bar No. 938777 

mbudwick@melandbudwick.com

Joshua W. Dobin, Esquire 

Florida Bar No. 93696 

jdobin@melandbudwick.com 

James C. Moon, Esquire 

Florida Bar No. 938211 

jmoon@melandbudwick.com 

MELAND BUDWICK, P.A. 

3200 Southeast Financial Center 

200 South Biscayne Boulevard 

Miami, Florida 33131 

Telephone: (305) 358-6363 

Telecopy: (305) 358-1221 

Proposed Attorneys for Debtors 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 8 of 13
Named 

Insured

Entity 

Covered

Policy Type Policy 

Number

Insurer Policy 

Inception

Policy 

Expiration

Broker Premium incl taxes, 

surch, fees

Broker Contact Info BBX 

Master 

Program

It'Sugar 

LLC

It'Sugar 

LLC

General Liability-$5K ded CC8GL000

30-201

Everest Premier 

Insurance Company

08/01/20 08/01/21 AJG $64,517.00 Gladys Matthews 

Gladys_Matthews@ajg.com 

713-358-5892

NO

It'Sugar 

LLC

It'Sugar 

LLC

Workers Compensation CC8WC000

32-201

Everest Premier 

Insurance Company

08/01/20 08/01/21 AJG $184,710.00 Gladys Matthews 

Gladys_Matthews@ajg.com 

713-358-5892

NO

It'Sugar 

LLC

It'Sugar 

LLC

D&O, EPL, Fiduciary ERP 6 

Years

ML760220

500

Argonaut Insurnace 10/30/16 06/16/23 AMWINS/R

mpart 

Brokerage

$24,494.00 Unknown NO

It'Sugar 

LLC

It'Sugar 

LLC

Product Recall Expense BGPR0270

02

Berkley Assurance 08/01/20 08/01/21 RMSMaximum$3,252.90 Ed Perdomo 

EdP@MAXIB.com 813-

999-4976

NO

It'Sugar 

LLC

It'Sugar 

LLC

Rep & Warranty W1F0A717

0101

Lloyds 06/16/17 06/16/23 Marsh $315,300.00 Kevin Rogan 

Kevin.P.Rogan@marsh.com 

954-838-3506

NO

BBX 

Capital 

Corp

It'Sugar 

LLC

Foreign Commercial Package WR100010

19

World Source 08/01/20 08/01/21 AJG $0.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Active Shooter & Malicious 

Attack Property & Liability

UTS256245

020

Hiscox 03/28/20 03/28/21 MaximumRMS$809.49 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Network Liability- $6M 

primary

01-382-47-

16

National Union Fire 

Insurance Co of Pitt

06/01/20 06/01/21 NFP $10,035.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Network Liability- $4M 

excess

100038655 QBE 06/01/20 06/01/21 NFP incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Excess-$15M xs $15M CX00DEQ2

0

Aspen 08/01/20 08/01/21 AJG $85,562.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Umbrella -$15M XC5EX010

80-021

Everest National 08/01/20 08/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Special Crime UKA30107

57.19

Hiscox 05/17/19 05/17/22 JLT $500.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (10% of $10M 

Primary)

CX 

D42304426 

001

Ace American 

Insurance Company

04/01/20 04/01/21 AJG $181,950.44 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (20% of $10M 

Primary)

ESP300016

01500

Endurance American 

Specialty Insurance 

Company

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (15% of $10M 

Primary)

100040256

2-01

Ironshore 04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property ($10M Primary) EW009722

0

Lloyds Underwriter 04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (5% of $10M 

Primary)

DF0001066

4

National Fire & Marine 

Ins Co (Kemah 

Capital)

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (10% of $15M xo 

$10M)

ELF636879-

20

AXIS Surplus 

Insurance Company

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (23.33% of $15M xo 

$10M)

000658923

0

Lexington Insurance 

Company

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property ($15M xo $10M) EW009742

0

Lloyds Channel 04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (11.33% of $15M xo 

$10M)

20-ASC0015BVarious - Risk Smith 04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (20% of $25M xo 

deductibles)

ESP300016

01500

Endurance American 

Specialty Insurance 

Company

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

EXHIBIT A

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 9 of 13
BBX 

Capital 

Corp

It'Sugar 

LLC

Property (15% of $25M xo 

deductibles)

W233D220

0301

(Beazley) Underwriters 

at Lloyds London

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property ($25M Primary) EW009662

0

Lloyds Argo 04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (8.33% of $25M x/o 

$25M)

PX00G6Y2

0

Aspen Specialty 

Insurance Co

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (20% of $25M x/o 

$25M)

D42265925 

002

Westchester Surplus 

Lines Insurance 

Company

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (100% of $25M x/o 

$100M)

Various QBE Specialty Ins, 

General Security 

Indemnity Co of AZ & 

Starstone Specialty

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (15% of $50M xo 

$50M)

01-B-XP00003665-0Ategrity Specialty 

Insurance Co

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (10% of $50M xo 

$50M)

73PRX20A

55A

Hallmark Specialty Ins 

Company

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property ($50M x/o $50M) EW009772

0

Lloyds Fidelis 04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (20% of $75M x/o 

$25M)

CA3X0015

93-201

Everest Indemnity Ins 

Co

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (33.33% of $75M xo 

$25M)

SLSTPTY1

1286320

Starr Surplus Lines 

Insurance Co

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (10% of $75M x/o 

$25M)

Various Velocity (Independent 

Specialty Ins Co; 

Interstate Fire & Cas 

Co; Certain 

Underwriters at 

Lloyds)

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Property (8.33% of $90M x/o 

$10M)

MKLV14X

P013853

Evanston Insurance 

Co

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Terrorism Policy FC0272220 Underwriters at Lloyds 

London

04/01/20 04/01/21 AJG incl above Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Employment Practices 

Liability ($5 M xs $500K)

QPL1181993QBE 11/15/19 11/15/20 Marsh $7,939.62 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Employment Practices 

Liability Excess ($3 xo $5)

V2533F190

201

Beazley 11/15/19 11/15/20 Marsh $4,820.48 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Directors & Officers ($10 

M/$1M retention)

PE2002178 Beazley 08/10/20 08/10/21 NFP $5,901.75 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

1st Excess D&O ($5 xs $10) 100040384 QBE 08/10/20 08/10/21 NFP $1,859.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

2nd Excess D&O ($5xs $15) PE2002193 Hiscox 08/10/20 08/10/21 NFP $1,523.37 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

3rd Excess $5M xs $20M PE2002194 Starpoint 08/10/20 08/10/21 NFP $1,234.46 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

4th Excess $5M xs $25M DO2020108

1-01

CapSpecialty 08/10/20 08/10/21 NFP $852.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

5th Excess $5M x $30M MLX42616

23-0

Argo 08/10/20 08/10/21 NFP $1,100.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 10 of 13
BBX 

Capital 

Corp

It'Sugar 

LLC

Side A DIC $10M ELU169573-

20

AXA XL 08/10/20 08/10/21 NFP $900.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Excess Side A DIC $5M x 

$10M

BPRO8053

327

Berkley 08/10/20 08/10/21 NFP $440.00 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Crime Coverage ($10M) V20CB519

0301

Beazley 11/15/19 11/15/20 Marsh $3,127.76 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Crime Coverage -Excess 

($10M xs $10M)

ELU164867-

19

XL Specialty Ins. Co. 11/15/19 11/15/20 Marsh $2,362.04 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Fiduciary Liability ($10 - 

$25k ret)

V20CCA19

0301

Beazley 11/15/19 11/15/20 Marsh $25.52 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

BBX 

Capital 

Corp

It'Sugar 

LLC

Fiduciary Liability Excess QPL1167432Beazley 11/15/19 11/15/20 Marsh $8.72 Toni Hartman

Antoinette.Hartman@bluegree

nvacations.com

561-912-7849

YES

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 11 of 13
1

UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA 

MIAMI DIVISION 

www.flsb.uscourts.gov

In re: 

 Chapter 11 

IT’SUGAR FL I LLC, Case No. 20-20259-RAM 

IT’SUGAR LLC, Case No. 20-20261-RAM 

IT’SUGAR ATLANTIC CITY LLC, Case No. 20-20263-RAM 

IT’SUGAR FLGC LLC, Case No. 20-20264-RAM 

 (Joint Administration pending) 

Debtors. 

_______________________________/

ORDER GRANTING DEBTORS' EMERGENCY MOTION 

FOR AUTHORIZATION TO (I) CONTINUE THEIR 

INSURANCE PROGRAMS; AND (II) PAY ALL INSURANCE OBLIGATIONS 

 THIS MATTER came before the Court on _________________, 2020 at ___ 

___.m. upon the Debtors' Emergency Motion for Authorization to (I) Continue its Insurance 

Programs; and (II) Pay All Insurance Obligations [ECF No. ____] (“Motion”). The Court 

reviewed the Motion, heard the statements of counsel in support of the relief requested in the 

Motion at the hearing before the Court (“Hearing”); finds that: (a) the Court has jurisdiction 

over this matter pursuant to 28 U.S.C. §§ 157 and 1334; (b) venue is proper before this Court 

EXHIBIT B

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 12 of 13
2

pursuant to 28 U.S.C. § 1408; (c) this matter is core pursuant to 28 U.S.C. § 157(b)(2); (d) notice 

of the Motion and the Hearing was sufficient under the circumstances; and (e) therefore just 

cause exits to grant the relief requested in the Motion as set forth herein. Accordingly, it is: 

ORDERED AND ADJUDGED as follows: 

1. The Motion is GRANTED. 

2. The Debtors are authorized to continue their Insurance Programs1 and to perform 

with respect to all of the Insurance Obligations. 

3. The Court shall retain jurisdiction over this matter to provide for such additional 

and further relief necessary to enforce the terms and conditions of this Order. 

### 

Submitted By: 

Joshua W. Dobin, Esquire 

Florida Bar No. 93696 

jdobin@melandbudwick.com

MELAND BUDWICK, P.A. 

Counsel for Debtors 

3200 Southeast Financial Center 

200 South Biscayne Boulevard 

Miami, Florida 33131 

Telephone: (305) 358-6363 

Telefax: (305) 358-1221 

Copies Furnished To: 

Joshua W. Dobin, Esquire, is directed to serve copies of this Order on all parties in interest and 

to file a Certificate of Service. 

1

 Capitalized terms not defined herein shall have the meaning ascribed to them in the Motion. 

Case 20-20259-RAM Doc 14 Filed 09/23/20 Page 13 of 13