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) PAY 

CERTAIN PREPETITION EMPLOYEE OBLIGATIONS AND MAINTAIN AND 

CONTINUE EMPLOYEE BENEFITS AND PROGRAMS; AND (II) FOR BANKS 

AND OTHER FINANCIAL INSTITUTIONS TO HONOR AND PROCESS CHECKS 

AND TO HONOR TRANSFERS RELATED TO SUCH 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 and have determined that, in order to ensure that the Employees (as 

defined herein) remain with the Debtors, and in order to maintain employee 

morale and productivity and continuous service to their customers, it is necessary 

to pay, in the ordinary course of the Debtors’ business, the Prepetition 

Employment Obligations (as defined herein) that are owed to or payable for the 

benefit of the Debtors’ current Employees as set forth in this Motion. Payment of 

these amounts will encourage the Employees to continue to work for the Debtors, 

thereby avoiding potential disruption in the Debtors’ business and their service to 

customers, promoting the prospects for a successful reorganization, and, 

ultimately, enhancing potential recoveries for the creditors. 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 

(collectively, “It’Sugar” or the “Debtors”), by and through undersigned counsel, pursuant to 11 

U.S.C. § 105(a), 363(b) and 507(a)(4), Federal Rule of Bankruptcy Procedure 6003, and Local 

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Rules 9013-1(F) and (I) and 9075-1, file this motion (the “Motion”) seeking entry of an order 

authorizing the Debtors to (i) pay prepetition employee obligations and maintain and continue 

employee benefits and programs; and (ii) authorizing their banks and other financial institutions 

to honor and process checks and to honor transfers related to such obligations. In support of the 

Motion, the Debtors respectfully represent as follows: 

Jurisdiction and Venue 

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

157. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2). 

2. Venue is proper in this Court pursuant to 28 U.S.C. §§ 1408 and 1409. 

3. The statutory predicates for the relief sought herein are Sections 105(a), 507(a)(4), 

507(a)(5) and 541 of the Bankruptcy Code, Rule 6003 of the Federal Rules of Bankruptcy 

Procedure (the “Bankruptcy Rules”) and Local Rule 9013-1(I). 

Procedural Background 

4. On September 22, 2020 (the “Petition Date”), the Debtors filed their respective 

voluntary petitions under Chapter 11 of the United States Bankruptcy Code. 

5. The Debtors are operating their business and managing their affairs as debtors-inpossession. 11 U.S.C. §§ 1107(a) and 1108. 

6. 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. 

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 2 of 34
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Relief Requested 

7. The Debtors seek the entry of an order pursuant to sections 105(a), 507(a)(4), and 

363(b) of the Bankruptcy Code: (i) authorizing, but not directing, it to pay and/or honor prepetition 

employee-related obligations, including, but not limited to, prepetition wages, salaries, medical, 

dental and insurance benefits, paid time off, vacation, sick and medical leave, and workers’ 

compensation insurance (collectively, the “Prepetition Employment Obligations”), (ii) 

authorizing those banks holding its payroll accounts to honor checks issued to employees 

prepetition that have not cleared or been presented as of the Petition Date, and (iii) authorizing, 

but not directing, it to continue its practices, programs and policies in effect as of the Petition Date 

with respect to all Prepetition Employment Obligations. A schedule containing the information 

required by Local Rule 9013-1(I)(1) is attached hereto as Exhibit A. As required by Local Rule 

9013-1(I)(2), there are five (5) insiders among the employees listed on Exhibit A, as follows: 

a) Jeffrey Rubin, Chief Executive Officer of It’Sugar. Mr. Rubin receives an 

annual salary of $375,000 and the following benefits: health, dental and life insurance, and 

reimbursement of expenses paid related to the Debtors, including cell phone. Mr. Rubin’s 

salary is initially paid by BBX Sweet Holdings, LLC and reimbursed 100% by the 

Debtors.1

 Mr. Rubin’s benefits are paid by the Debtors. 

b) Allison Rubin, senior buyer and product developer for It’Sugar and wife of 

Jeffrey Rubin. Mrs. Rubin receives an annual salary of $82,194 and the following benefits: 

health, dental and life insurance, and reimbursement of expenses paid related to the 

Debtors. Ms. Rubin’s salary and benefits are paid by the Debtors. 

1

 This is consistent with prepetition, ordinary business practice. Additionally, certain executives were let go in order 

to reduce costs. 

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c) Maryanne Scaffidi, the Chief HR Officer of It’Sugar. Ms. Scaffidi receives 

an annual salary of $220,000 and the following benefits: health, dental and life insurance, 

and reimbursement of expenses paid related to the Debtors, including cell phone. Ms. 

Scaffidi salary is initially paid by BBX Sweet Holdings, LLC and reimbursed 85% by the 

Debtors. The remaining 15% of Ms. Scaffidi’s salary is allocated to her work for BBX 

Sweet Holdings, LLC that is unrelated to the Debtors. Ms. Scaffidi’s benefits are paid by 

the Debtors. 

d) Anton Gladnikov, Chief Financial Officer of It’Sugar. Mr. Gladnikov 

receives an annual salary of $180,000 and the following benefits: health, dental and life 

insurance, and reimbursement of expenses paid related to the Debtors. Mr. Gladnikov’s 

salary is initially paid by BBX Sweet Holdings, LLC and reimbursed 85% by the Debtors. 

The remaining 15% of Mr. Gladnikov’s salary is allocated to his work for BBX Sweet 

Holdings, LLC that is unrelated to the Debtors. Mr. Gladnikov’s benefits are paid by the 

Debtors. 

e) Jonathan Schwartz, Assistant Vice-President of Real Estate and Business 

Development of It’Sugar. Mr. Schwartz receives an annual salary of $183,750 and the 

following benefits: health, dental and life insurance, and reimbursement of expenses paid 

related to the Debtors, including cell phone. Mr. Schwartz’ salary is initially paid by BBX 

Capital and reimbursed 75% by the Debtors. The remaining 25% of Mr. Schwartz’ salary 

is allocated to his work for BBX Capital that is unrelated to the Debtors. Mr. Schwartz’ 

benefits are paid by the Debtors. 

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f) Steve Parris, Vice President of Information Technology: Mr. Parris receives 

an annual salary of $190,000 and the following benefits: health, dental and life insurance, 

and reimbursement of expenses paid related to the Debtors. Mr. Parris’s salary and benefits 

are paid by the Debtors. 

8. Each of the foregoing insider employees are legitimate employees, working fulltime or part-time for the Debtors and are absolutely essential to the Debtors’ business operation. 

Moreover, if the Debtors were required to replace any of such employees, the Debtors’ business 

operations would be severely disrupted and prejudiced. In addition, replacement of such 

employees could not likely be done at any cost savings to the Debtors. Instead, the Debtors believe 

that the cost of replacing these employees would likely exceed the current amounts being paid to 

such employees. 

9. All payroll taxes and related benefits, to the extent applicable, will be paid 

concurrently with the payment of the prepetition wages identified on Exhibit A to this Motion 

when authority to pay such wages has been granted. See Local Rule 9013-1(I). 

Payment of Employee Compensation, Withholding Obligations and Insurance Costs 

10. As further described below, the Debtors’ gross Prepetition Employee Obligations 

total approximately $400,000. 

A. Prepetition Wages, Salaries and Other Compensation 

11. As of the Petition Date, the Debtors employed approximately 598 employees (the 

“Employees”), of which 246 are full time and 352 are part time employees, exclusive of the 

individuals listed in (a) through (e) above. Below is a breakdown by positions: 

a) 54 people are in corporate positions; and 

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b) 544 people are in retail positions. 

12. Approximately 464 Employees are paid on an hourly basis and approximately 134 

Employees are paid a fixed salary. The Debtors’ Employees are the public “face” of their business; 

they are responsible for ensuring that customers receive the product they have come to expect from 

the Debtors. The Employees’ skills and their knowledge and understanding of the Debtors’ 

operations, customer and supplier relationships, and infrastructure are essential to maintaining the 

Debtors’ business enterprise and the success of their chapter 11 reorganization efforts. Without the 

Employees’ continued commitment to the Debtors’ business operation, the Debtors’ ability to 

achieve a successful reorganization would be severely compromised. 

B. Payroll and Related Obligations 

a) Compensation Obligations 

13. In the ordinary course of its business, the Debtors incur payroll and various other 

obligations for their Employees and provide other benefits to their Employees for the performance 

of services. These benefits and obligations are described in more detail below. 

14. In the ordinary course of business, the Debtors incur payroll obligations to their 

Employees, comprised generally of wages and salaries. The Debtors pay their Employees on a biweekly basis, on Friday, one week in arrears. The Debtors’ average monthly gross payments based 

on the last twelve months (i.e., gross salaries and wages paid to Employees before Employee taxes 

or other deductions are withheld) for all Employees is approximately $1,400,000 per month. The 

last date Employees were compensated prior to the Petition Date was September 18, 2020, which 

primarily included all salaries and wages earned from August 30, 2020 through September 12, 

2020. 

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15. The Debtors’ payroll is issued via checks or by direct deposit. The Debtors use 

ADP to assist in the processing of its payroll and funds the payment of payroll tax and employee 

benefits (as discussed below). 

16. Because Employees are paid in arrears, as of the Petition Date, some of the 

Employees will not have been paid all of their prepetition wages. Additionally, some of the 

Employees may be entitled to compensation because, among other things, (i) potential 

discrepancies may exist between the amounts paid and amounts Employees believe should have 

been paid, which, upon resolution, may reveal that additional amounts are owed to such 

Employees, and (ii) some payroll checks issued to Employees prior to the Petition Date may not 

have been presented for payment or may not have cleared the banking system and, accordingly, 

have not been honored and paid as of the Petition Date. 

17. The Debtors estimate that, as of the Petition Date, the accrued and unpaid 

prepetition salaries and wages (the “Compensation Obligations”) total approximately $400,000. 

Notably, as of the Petition Date, to the best of the Debtors’ understanding, none of the Employees 

are owed more than $13,650.00 in accrued and unpaid prepetition wages or salaries, excluding 

outstanding and uncashed payroll checks. 

18. By this Motion, the Debtors seek authority, but not direction, to pay any unpaid 

Compensation Obligations and outstanding payroll checks not yet presented for payment, and to 

continue its employee compensation practices in the ordinary course during the administration of 

these chapter 11 cases. 

19. All applicable payroll taxes and related benefits due to the Employees will be paid 

concurrently with payment of the wages. 

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 7 of 34
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C. Amounts Withheld on Behalf of Third Parties

Payroll Tax Obligations 

20. In connection with the salaries and wages paid to Employees, the Debtors are 

required by law to withhold from its Employees’ wages amounts related to federal, state, and local 

income taxes, as well as social security and Medicare taxes (collectively, the “Employee 

Withholding Taxes”) and to remit the same to the applicable taxing authorities (the “Taxing 

Authorities”). In addition, the Debtors are required to make matching payments from its own funds 

for, among other things, social security and Medicare taxes and to pay, based on a percentage of 

gross payroll, state and federal unemployment insurance, employment training taxes, and state 

disability insurance contributions (the “Employer Payroll Tax Obligations,” and together with 

Employee Withholding Taxes, the “Payroll Tax Obligations”). 

21. Each pay cycle, the Debtors withhold any applicable Employee Withholding Taxes 

from the Employees’ wages, and remit the same to the applicable Taxing Authorities. Historically, 

on average, the Debtors have withheld approximately $200,000 per month in Employee 

Withholding Taxes. At the same time, the Debtors also remit any Employer Payroll Tax 

Obligations. The Debtors’ average monthly payment for Employer Payroll Tax Obligations has 

been approximately $100,000 per month. 

22. As of the Petition Date, the Debtor estimates that it owes approximately $75,000 in 

accrued Payroll Tax Obligations. 

23. By this Motion, the Debtors seek authority, but not direction, to (i) pay any accrued 

and unpaid Payroll Tax Obligations, and (ii) continue to pay Payroll Tax Obligations, and remit 

amounts withheld on behalf of third parties with respect thereto postpetition, in the ordinary course 

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of business throughout the administration of the Chapter 11 cases. The Debtors believe that such 

withheld funds, to the extent that they remain in the Debtors’ possession, constitute monies held 

in trust and, therefore, are not property of the Debtors’ bankruptcy estates. Accordingly, the 

Debtors request that its practice of directing such funds to the appropriate parties in the ordinary 

course of business be specifically authorized and approved by the Court out of an abundance of 

caution. 

D. Business Expenses 

24. It’Sugar LLC (“ITS”) utilizes and has provided twenty-four (24) employees with 

an American Express Corporate credit card. ITS pays American Express directly for a variety of 

its business-related expenses incurred in performing their employment obligations including travel 

for employees; shipping and packing materials and supplies; human resources related software 

subscriptions with recurring monthly and annual charges; tax software, third party accounts 

payable software, expense submission and approval software and marketing subscriptions with 

recurring monthly and annual charges; IT infrastructure licenses and subscriptions; and 

miscellaneous corporate services and expenses (the “Business Expenses”). All Business Expenses 

are incurred with the understanding that they will be paid for by ITS. ITS reviews the American 

Express statements and pays the amounts related to the business directly to American Express. 

Historically, Business Expenses aggregate approximately $40,000 per month. The Debtors require 

the ability to continue to use the American Express account to pay for such Business Expenses. 

25. Further, the Debtors reimburse certain employees for mileage and travel and 

entertainment expenses, which the Debtors estimate does not exceed $5,000 per month (“Travel 

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 9 of 34
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Expenses”). Lastly, approximately $1,000 is spent monthly to reimburse an employee who shops 

for miscellaneous supplies used by the Debtors (“Miscellaneous Expenses”). 

26. The Debtors intend to continue this practice relating to Business Expenses, Mileage 

Expenses and Miscellaneous Expenses in the ordinary course during the administration of the 

Chapter 11 cases. 

E. Employee Benefit Plans 

27. In the ordinary course of business, the Debtors have established various benefit 

plans and policies for their Employees that can be divided into the following categories: (i) medical 

and prescription drug benefits, and dental care (collectively, the “Health Plans”); (ii) life insurance 

(“Life Insurance”), and (iii) paid vacation time (“Vacation Time,” and together with the Health 

Plans and Life Insurance, the “Employee Benefit Plans”). In certain instances, the Debtors deduct 

specified amounts from the Employees’ wages in connection with the Employee Benefit Plans, 

such as, among others, the Health Plans. 

28. All obligations with respect to the Employee Benefit Plans (including insurance 

policies and coverage) are hereinafter referred to as the “Employee Benefit Obligations,” which 

include, without limitation, the obligations arising under the various plans described below. As of 

the Petition Date, the Debtors believe that the accrued and unpaid prepetition Employee Benefit 

Obligations, comprised solely of Employee contributions to such plans, total approximately 

$30,000. 

F. Workers’ Compensation Insurance 

29. The Debtors provide workers’ compensation insurance coverage for the benefit of 

all Employees. These benefits are covered primarily under the Debtors’ workers’ compensation 

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insurance program, which program is provided and administered by Everest Premier Insurance 

Company (“Everest”), an A-rated domestic carrier, up to $1,000,000 per incident and $1,000,000 

per individual. Failure to maintain this insurance could result in the institution of administrative or 

legal proceedings against the Debtors. The monthly premium for the workers’ compensation is 

approximately $15,000. 

30. The Debtors seek authority to pay any workers’ compensation premium that 

remained accrued and unpaid as of the Petition Date and continue paying and/or contesting in good 

faith, as appropriate in the Debtors’ business judgment, all amounts related to workers’ 

compensation claims that arose prior to the Petition Date, including, without limitation, any 

payments to insurers required as a result of such claims, as they become due in the ordinary course 

of the Debtors’ business. 

G. Direction to Banks 

31. Finally, the Debtors seek an order authorizing and directing all banks to receive, 

process, honor, and pay any and all checks drawn on the Debtors’ payroll and general disbursement 

accounts related to the Compensation Obligations, the Payroll Tax Obligations, the Business 

Expenses, and the Employee Benefit Obligations, (collectively, the “Prepetition Employment 

Obligations”), including any uncashed checks that were issued prior to the Petition Date with 

respect thereto, whether presented before or after the Petition Date, provided that sufficient funds 

are on deposit in the applicable accounts to cover such payments. 

32. The Debtors’ Employees would suffer hardship if they were to lose (or suffer a 

delay in receiving) their anticipated pay and benefits. 

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33. The Debtors have paid their Prepetition Employment Obligations on a current basis. 

Some Prepetition Employment Obligations for the period immediately before the filing of the 

petitions, however, have not been paid, primarily because the petitions were filed after the 

Employees’ entitlements had accrued, but before payment was due. 

34. The Debtors have determined that, in order to ensure that the Employees remain 

with the Debtors during its Chapter 11 case, and in order to maintain Employee morale and 

productivity and continuous service to their customers, it is necessary to pay, in the ordinary course 

of the Debtors’ business, the Prepetition Employment Obligations that are owed to or payable for 

the benefit of the Debtors’ current Employees as set forth in this Motion. Payment of these amounts 

will encourage the Employees to continue to work for the Debtors, thereby avoiding potential 

disruption in the Debtors’ business and its service to customers, promoting the prospects for a 

successful reorganization, and, ultimately, enhancing potential recoveries for the Debtors’ 

creditors. 

H. Legal Basis and Authority for Relief 

35. As a result of the commencement of this case, and in the absence of an order of the 

Court providing otherwise, the Debtors may be prohibited from paying or otherwise satisfying 

their Prepetition Employment Obligations described above. To maintain Employee morale at this 

critical time for the Debtors, and to minimize the personal hardship the Employees would suffer if 

prepetition employee-related obligations are not paid when due, the Debtors seek authority to 

honor in the exercise of its business judgment such obligations, including those described above. 

Accordingly, pursuant to sections 105(a), 363(b) and 507(a)(4) of the Bankruptcy Code and the 

“necessity of payment” doctrine, the Debtors seek entry of an order authorizing, but not directing, 

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the Debtors to (i) pay Prepetition Employment Obligations, and (ii) continue the practices, 

programs and policies in effect as of the Petition Date with respect to all Prepetition Employment 

Obligations. Relief similar to that sought herein has been granted by Courts in this District. See, 

e.g., In re Protective Products of America, Inc., et. al., Chapter 11 Case No. 10-10711-BKC-JKO 

(Bankr. S.D. Fla. Jan. 19, 2010) (Olson, J.); In re DM Industries, Ltd., Chapter 11 Case No. 09-

15533-BKC-LMI (Bankr. S.D. Fla. Mar. 31, 2009) (Isicoff, J.); In re Gemini Cargo Logistics, Inc. 

et al., Chapter 11 Case No. 08-18173-BKC-AJC (Bankr. S.D. Fla. June 20, 2008) (Cristol, J.); In 

re Tousa, Inc., et al, Chapter 11 Case No. 08-10928-BKC-JKO (Bankr. S.D. Fla. Jan. 31, 2008) 

(Olson, J.); In re Gemini Cargo Logistics, Inc. et al., Chapter 11 Case No. 06-10870-BKC-AJC 

(Bankr. S.D. Fla. March 17, 2006) (Cristol, J.); In re Atlas Air Worldwide Holdings, Inc. et al., 

Chapter 11 Case No. 04-10792-BKC-RAM (Bankr. S.D. Fla. Feb. 10, 2004) (Mark, J.). 

36. Section 363(b)(1) of the Bankruptcy Code provides: “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)(1). Section 105(a) of the Bankruptcy Code provides: 

The court may issue any order, process, or judgment that is 

necessary or appropriate to carry out the provisions of this title. No 

provision of this title providing for the raising of an issue by a party 

in interest shall be construed to preclude the court from, sua sponte, 

taking any action or making any determination necessary or 

appropriate to enforce or implement court orders or rules, or to 

prevent an abuse of process. 

11 U.S.C. § 105(a). 

37. Pursuant to section 507(a)(4) of the Bankruptcy Code, as amended by the 

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, each employee may be 

granted a priority claim for: 

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allowed unsecured claims, but only to the extent of $13,650 for

each individual or corporation, as the case may be, earned within 

180 days before the date of the filing of the petition or the date of 

the cessation of the debtor’s business, whichever occurs first, for – 

(A) wages, salaries, or commissions, including vacation, 

severance, and sick leave pay earned by an individual; or 

(B) sales commissions earned by an individual or by a 

corporation with only 1 employee, acting as an independent 

contractor in the sale of goods or services, for the debtor in 

the ordinary course of the debtor’s business if, and only if, 

during the 12 months preceding that date, at least 75 

percent of the amount that the individual or corporation 

earned by acting as an independent contractor in the sale of 

goods or services was earned from the debtor . . . 

11 U.S.C. § 507(a)(4). 

38. Because all of the Prepetition Employment Obligations constitute priority claims 

pursuant to section 507(a)(4) of the Bankruptcy Code, which claims must be paid in full pursuant 

to section 1129(a)(9) of the Bankruptcy Code in order to confirm a plan of reorganization, payment 

of such obligations at this time merely affects the timing, but not the appropriateness, of such 

payments. To the extent that Employees are owed in excess of $13,650 in respect of Prepetition 

Employment Obligations earned within 180 days of the Petition Date, the Debtors seek to cap the 

payment at $13,650, and will not pay in excess of this amount for Prepetition Employee 

Obligations. 

39. The Debtors’ Employees are essential to the success of their business, and thus to 

a successful reorganization. The stability of the Debtors’ workforce is essential to its continued 

operations. It is therefore critical that the Debtors be permitted to continue the ordinary course 

personnel policies, programs and procedures that were in effect prior to the Petition Date. 

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40. The Eleventh Circuit has recognized and applied the doctrine of necessity in various 

cases. See, e.g., Southern Ry. Co. v. U.S. Fidelity & Guar. Co., 87 F.2d 118, 119 (5th Cir. 1936)2

(“There is a doctrine which permits preferential payment of a common claim when necessary for 

the benefit of the estate.”) (citing Miltenberger v. Logansport R. Co., 106 U.S. 286 (1882)). The 

doctrine was expanded to non-railroad debtors in a decision by Judge Learned Hand in Dudley v. 

Mealey, 147 F.2d 268, 271 (2d Cir. 1945) (holding, in a hotel reorganization case, that the court 

was not “helpless” to apply the rule to supply creditors of non-railroad debtors where the 

alternative was the cessation of operations). 

41. Today, the rationale for the necessity of payment rule – the rehabilitation of a debtor 

in reorganization cases – is “the paramount policy and goal of Chapter 11.” In re Ionosphere Clubs, 

Inc., 98 B.R. 174, 176 (Bankr. S.D.N.Y. 1989); In re Just For Feet, Inc., 242 B.R. 821 (D. Del. 

1999) (payment of prepetition claims to certain trade vendors was “essential to the survival of the 

debtor during the Chapter 11 reorganization”); In re Quality Interiors. Inc., 127 B.R. 391, 396 

(Bankr. N.D. Ohio 1991) (“payment by a debtor-in-possession of pre-petition claims outside of a 

confirmed plan of reorganization is generally prohibited by the Bankruptcy Code,” but “[a] general 

practice has developed, however, where bankruptcy courts permit the payment of certain prepetition claims, pursuant to 11 U.S.C. § 105, where the debtor will be unable to reorganize without 

such payment”); In re Eagle-Picher Indus., Inc., 124 B.R. 1021, 1023 (Bankr. S.D. Ohio 1991) 

(court approved payment of prepetition unsecured claims of toolmakers as “necessary to avert a 

serious threat to the Chapter 11 process”); In re Adams Apple, Inc., 829 F.2d 1484, 1490 (9th Cir. 

1987) (recognizing that allowance of “unequal treatment of pre-petition debts when necessary for 

rehabilitation . . .”); In re Chateauguay Corp., 80 B.R. 279, 287 (Bankr. S.D.N.Y. 1987) 

2

 This case constitutes binding Eleventh Circuit precedent. Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 

1981) (en banc). 

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(authorizing payment of prepetition worker’s compensation claims on grounds that the 

fundamental purpose of reorganization and equity powers of bankruptcy courts “is to create a 

flexible mechanism that will permit the greatest likelihood of survival of the debtor and payment 

of creditors in full or at least proportionately”); see also 2 Collier on Bankruptcy, ¶ 105.04[5][a] 

(15th ed. Rev. 2004). 

42. The Debtors further submit that the withholding obligations do not constitute 

property of its estate and principally represent employee earnings that governments (in the case of 

taxes), Employees (in the case of voluntary withholding obligations), and judicial authorities (in 

the case of involuntary withholding obligations), have designated for deduction from Employee 

paychecks. The failure to transfer these withheld funds could result in hardship to certain 

employees. 

43. Further, the Debtors submit that with respect to the wage-related taxes that 

constitute “trust fund” taxes, the payment of such taxes will not prejudice other creditors of the 

Debtors’ estates given that the relevant taxing authorities would have a priority claim under section 

507(a)(8) of the Bankruptcy Code in respect of such obligations. Moreover, the monies payable 

for trust fund taxes, as well as the other funds that are held in trust for the benefit of third parties, 

are not property of the Debtors’ estates. 

44. The Debtors’ Employees are essential to its business. For this reason, and the 

reasons set forth above, the request to pay Prepetition Employment Obligations and to continue 

the ordinary course personnel policies, programs and procedures that were in effect prior to the 

Petition Date is justified under the foregoing authorities, as well as section 105(a) of the 

Bankruptcy Code. 

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I. Reservation of Debtors’ Rights 

45. Nothing contained herein is intended or should be construed as an admission as to 

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

or an approval or assumption of any agreement, contract, or lease under Section 365 of the 

Bankruptcy Code. Likewise, if this Court grants the relief sought herein, any payment made 

pursuant to the Court’s order is not intended and should not be construed as an admission as to the 

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

 WHEREFORE, the Debtors respectfully requests that this Court enter an Order (in the 

form attached hereto as Exhibit B authorizing the Debtors to pay the Prepetition Employment 

Obligations and granting such further relief this Court deems just and proper. 

 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 12 Filed 09/23/20 Page 17 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

120235 28.06 $280.55 $45.23 $23.34

997616 94.48 $944.81 $177.85 $70.72

680107 100.97 $1,110.62 $215.29 $85.45

100235 77.80 $1,281.36 $155.47 $81.43

120210 18.86 $282.96 $37.09 $24.33

120221 35.97 $521.61 $54.15 $44.85

680027 38.71 $512.94 $86.86 $44.10

112316 33.46 $434.97 $47.97 $37.40

120052 52.04 $702.60 $85.07 $60.41

656951 32.47 $428.99 $54.87 $30.67

680702 63.84 $840.08 $126.17 $60.06

120219 28.86 $360.72 $42.67 $31.02

120043 35.05 $420.64 $46.95 $36.17

120157 16.60 $199.15 $31.10 $17.12

695361 35.99 $431.94 $56.96 $37.14

114087 59.52 $714.29 $67.93 $51.07

120091 78.48 $1,334.24 $170.92 $102.48

120165 75.79 $1,250.50 $181.69 $107.52

120277 35.18 $527.72 $56.23 $45.37

997561 76.93 $1,057.83 $165.49 $75.37

998536 73.40 $1,137.73 $160.99 $81.34

120007 74.32 $1,059.09 $90.86 $73.99

998165 80.00 $1,923.08 $283.94 $136.94

100237 80.00 $1,663.62 $139.62 $83.10

998117 80.00 $1,600.00 $286.29 $122.40

120136 80.00 $1,730.77 $292.14 $147.01

100244 80.00 $2,230.77 $325.44 $159.32

965911 32.00 $640.07 $63.86 $45.76

998497 71.90 $1,797.60 $298.56 $134.43

120196 75.10 $1,858.81 $303.17 $207.11

966175 95.25 $1,952.65 $392.51 $146.68

658238 57.97 $889.88 $152.39 $63.62

120110 79.16 $1,424.85 $214.93 $129.26

680346 81.66 $1,393.16 $244.21 $100.79

678910 0.00 $0.00 $18.09 $0.00

112880 43.72 $710.45 $104.25 $50.84

680280 36.78 $525.90 $57.15 $37.60

997697 41.22 $577.03 $82.12 $41.25

120275 27.14 $458.58 $50.87 $49.93

966568 64.70 $1,035.25 $158.58 $74.02

657907 61.03 $869.72 $148.77 $62.18

120270 58.09 $885.88 $116.61 $96.52

112026 41.94 $597.70 $100.04 $42.73

658077 47.75 $659.01 $111.02 $71.75

679751 53.17 $731.06 $123.93 $52.27

658382 40.39 $545.30 $93.43 $38.99

998469 62.03 $1,023.46 $141.22 $80.76

120156 41.85 $707.23 $88.03 $77.65

997991 70.20 $965.29 $150.93 $69.23

679286 18.84 $260.97 $36.75 $28.41

EXHIBIT A

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 18 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

965938 36.45 $492.14 $68.15 $35.20

966436 30.52 $475.75 $63.64 $51.80

695379 37.25 $558.70 $77.03 $39.96

965864 25.79 $386.81 $49.29 $42.11

966245 49.80 $746.97 $110.36 $53.43

681022 29.76 $446.35 $60.57 $48.60

998322 21.50 $322.44 $41.15 $35.11

120122 13.11 $170.40 $30.27 $18.55

998101 13.19 $171.51 $30.35 $18.67

120166 18.70 $317.96 $40.82 $34.62

998387 39.89 $671.74 $81.21 $70.94

998413 4.26 $71.71 $23.22 $7.81

120002 26.18 $418.93 $72.58 $45.61

120080 60.21 $782.72 $99.51 $85.22

120203 24.21 $314.78 $40.60 $34.27

120237 32.82 $426.62 $48.61 $46.47

120239 38.23 $516.12 $55.52 $56.19

120126 57.35 $774.25 $98.51 $84.56

695623 50.92 $661.98 $114.65 $47.38

120072 39.66 $495.81 $53.54 $53.98

120079 43.93 $680.98 $82.73 $74.14

965841 30.70 $460.47 $51.02 $32.92

998099 18.80 $282.00 $38.25 $20.16

695274 26.02 $390.34 $66.41 $27.91

966433 22.98 $344.75 $59.06 $24.65

695387 43.83 $569.75 $81.41 $62.36

681001 69.79 $907.21 $139.71 $64.86

997772 7.85 $102.10 $25.40 $11.12

997487 34.86 $453.19 $78.23 $49.34

966282 43.31 $649.70 $64.54 $54.66

120151 15.59 $233.85 $34.81 $25.46

997484 40.96 $624.63 $89.98 $68.01

680220 16.99 $268.13 $37.27 $29.19

120146 20.15 $266.96 $37.17 $29.07

120145 35.64 $472.25 $51.86 $51.42

100255 70.03 $2,020.41 $144.65 $126.56

680021 85.10 $2,574.19 $213.33 $148.17

111377 65.62 $1,414.83 $246.68 $101.24

679779 85.34 $1,760.63 $175.08 $89.40

100124 66.58 $1,391.43 $202.81 $99.58

997525 92.69 $2,062.44 $342.58 $153.22

657817 79.35 $2,017.90 $366.59 $144.27

678784 79.33 $1,624.67 $244.91 $116.37

112138 72.32 $2,202.91 $302.94 $140.93

657141 85.41 $1,837.97 $244.54 $116.59

997514 39.64 $673.94 $74.39 $38.99

100268 57.16 $943.13 $141.51 $65.98

678526 58.85 $941.60 $121.17 $66.87

658146 30.97 $495.45 $37.63 $29.76

997696 70.96 $1,085.72 $134.26 $62.74

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 19 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

120223 66.61 $1,248.89 $185.10 $137.45

658377 80.87 $1,164.54 $195.92 $81.05

680389 31.88 $463.79 $37.69 $29.84

120197 82.41 $2,473.02 $484.49 $211.17

966516 39.89 $642.22 $118.60 $50.50

997723 80.30 $1,292.89 $240.97 $92.44

678937 45.97 $620.56 $97.56 $50.75

997644 25.58 $338.98 $52.91 $27.72

120253 46.07 $610.48 $81.68 $53.35

965912 22.06 $286.82 $61.37 $25.06

120087 20.04 $257.53 $47.08 $22.50

120095 32.04 $411.66 $58.10 $35.97

120086 26.79 $344.29 $53.28 $30.08

998472 24.15 $289.80 $49.39 $25.32

120228 66.68 $1,000.24 $147.53 $87.40

965941 32.11 $457.58 $61.39 $37.42

965800 80.00 $2,192.31 $216.75 $146.02

997671 20.29 $263.73 $146.56 $23.54

680507 43.93 $560.16 $163.19 $53.14

658277 85.57 $1,197.95 $188.50 $104.33

657794 80.00 $1,875.93 $257.18 $103.54

120171 23.53 $388.23 $53.11 $36.47

120218 22.65 $339.78 $49.65 $31.91

998321 25.53 $382.95 $74.80 $35.97

998120 12.79 $191.80 $43.28 $18.01

680769 4.84 $72.55 $31.45 $6.81

998136 63.41 $1,077.94 $199.08 $77.07

998307 80.00 $1,980.77 $263.77 $146.65

112282 77.92 $1,051.88 $163.33 $75.20

120226 74.44 $1,116.60 $140.23 $90.58

997997 77.04 $1,117.08 $140.31 $79.87

679257 81.94 $1,196.33 $183.52 $83.32

965959 37.79 $566.89 $78.97 $40.53

657592 41.54 $467.71 $44.25 $33.44

998561 37.20 $409.24 $29.26 $33.20

998343 36.28 $362.84 $45.23 $29.43

657723 38.27 $466.18 $33.33 $37.82

695679 39.58 $415.58 $37.41 $33.71

120010 48.19 $506.02 $36.18 $41.05

658446 41.28 $461.93 $43.32 $34.22

680966 36.87 $377.94 $46.31 $28.22

1032 34.25 $376.76 $26.94 $30.56

120129 53.45 $561.19 $44.88 $45.52

681006 52.03 $520.34 $54.69 $37.20

120062 59.20 $769.64 $79.27 $62.43

120216 63.53 $825.84 $88.53 $66.99

997678 56.83 $625.10 $44.69 $44.69

998490 44.04 $484.45 $34.65 $39.30

997726 41.25 $453.73 $60.23 $32.44

998455 59.16 $650.76 $59.66 $46.53

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 20 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

120222 67.82 $745.98 $75.36 $60.52

965950 86.09 $1,041.72 $141.65 $74.48

997641 64.99 $714.91 $86.78 $51.11

998016 4.57 $45.69 $3.26 $3.71

998407 49.61 $483.65 $34.58 $37.62

120212 50.15 $526.58 $37.64 $42.72

998098 20.01 $195.09 $17.57 $15.83

680837 34.28 $380.54 $46.74 $30.87

997994 25.02 $275.18 $19.67 $22.32

120269 16.81 $151.29 $10.82 $12.27

695754 26.77 $240.94 $24.23 $19.55

997612 22.57 $197.46 $17.95 $16.02

695639 17.15 $154.37 $11.04 $12.52

998122 10.94 $95.68 $6.84 $7.76

695704 40.99 $368.93 $46.24 $29.93

120281 22.51 $247.64 $17.71 $20.09

998096 39.39 $433.25 $56.85 $31.89

120206 25.96 $233.62 $16.70 $18.95

120211 33.81 $304.31 $21.75 $24.69

120046 30.11 $286.04 $20.45 $23.20

998566 35.22 $334.63 $23.92 $27.15

120200 10.49 $102.24 $7.31 $8.29

998487 21.62 $205.43 $14.69 $16.67

120258 14.97 $134.72 $9.62 $10.93

120256 31.08 $279.75 $20.00 $22.69

998092 45.40 $408.60 $52.77 $33.15

120034 22.95 $200.83 $14.35 $16.29

998530 15.89 $139.03 $9.95 $11.28

120241 27.08 $243.74 $17.43 $19.77

120063 13.20 $118.83 $8.50 $9.64

120259 67.05 $804.55 $85.03 $65.27

656593 63.79 $909.06 $139.78 $64.99

695276 75.49 $943.61 $147.08 $67.46

695686 67.22 $887.27 $76.65 $48.17

966569 66.99 $770.42 $112.89 $55.08

966371 81.06 $972.76 $120.26 $66.03

998121 55.83 $614.16 $87.66 $43.91

120004 63.65 $795.68 $83.55 $64.55

100202 80.00 $1,971.16 $310.89 $139.46

695399 80.00 $1,826.92 $116.61 $80.71

680086 80.00 $1,690.37 $243.89 $121.77

120061 80.00 $1,730.77 $275.28 $132.40

680804 80.00 $1,549.30 $103.73 $103.73

998294 80.00 $2,115.39 $396.76 $161.83

998292 80.00 $1,461.54 $153.57 $100.73

678865 80.00 $1,483.47 $266.36 $113.49

997709 80.00 $1,520.00 $226.56 $116.28

679482 80.00 $1,449.76 $77.47 $77.47

998003 80.00 $1,384.62 $246.95 $105.92

680504 80.00 $1,634.62 $249.00 $109.78

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 21 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

997836 80.00 $1,653.85 $299.85 $126.52

100033 80.00 $2,471.54 $403.68 $189.07

680967 80.00 $2,326.77 $375.92 $178.00

998547 38.51 $404.35 $28.91 $32.80

998310 34.29 $351.51 $43.38 $28.51

998458 30.35 $333.80 $39.18 $25.86

120090 34.46 $379.11 $42.41 $29.37

120033 23.94 $233.38 $31.99 $18.08

120282 15.33 $138.00 $25.18 $10.69

966254 59.40 $742.45 $68.39 $53.08

112677 80.00 $1,845.74 $265.63 $131.28

120265 36.80 $386.37 $51.63 $32.86

120233 45.56 $467.00 $57.39 $39.71

998434 84.49 $971.60 $137.97 $81.69

658452 90.96 $1,384.62 $251.10 $117.68

120008 81.07 $1,491.76 $241.65 $115.15

679145 39.79 $447.67 $103.55 $37.13

695769 15.28 $168.08 $58.48 $13.94

997622 55.20 $828.02 $149.37 $68.68

695777 38.79 $591.51 $112.41 $49.06

679665 22.92 $229.19 $68.33 $19.01

966369 43.99 $615.83 $123.92 $51.08

120015 37.41 $523.70 $84.69 $43.44

679338 77.65 $1,087.10 $215.63 $81.97

965968 39.48 $651.47 $122.31 $50.38

680391 80.00 $1,631.00 $333.54 $124.77

695774 80.00 $1,730.77 $271.85 $122.95

112719 80.00 $2,373.47 $555.66 $181.57

657619 65.62 $689.04 $120.87 $65.04

998285 4.28 $42.80 $25.63 $4.44

117397 82.76 $1,010.55 $158.25 $64.37

111342 80.00 $1,730.77 $154.97 $132.40

695783 13.90 $201.54 $81.28 $28.13

998108 90.78 $1,316.29 $256.26 $157.03

966179 63.15 $899.91 $215.12 $109.29

120128 46.02 $655.79 $143.25 $74.81

111872 6.42 $81.86 $61.07 $9.34

120194 49.76 $597.06 $118.12 $76.48

120116 64.33 $1,136.68 $212.41 $137.92

966165 80.00 $3,576.93 $868.10 $277.01

998500 80.00 $1,980.77 $353.46 $141.35

966416 74.10 $1,370.80 $128.68 $98.01

695751 22.58 $293.50 $45.83 $35.80

966209 29.74 $386.56 $73.99 $27.64

998327 37.51 $468.93 $87.57 $54.56

695350 54.35 $774.42 $118.61 $55.37

998391 16.46 $213.94 $45.51 $26.09

114114 16.36 $208.10 $43.77 $25.38

998097 30.56 $374.35 $71.98 $45.66

120133 31.06 $465.93 $58.14 $56.83

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 22 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

966187 16.75 $251.18 $42.80 $30.63

120094 9.14 $109.65 $32.68 $13.37

997488 17.27 $189.97 $41.55 $23.17

120102 17.18 $197.62 $38.98 $24.10

120193 14.25 $163.90 $36.55 $15.39

966379 33.22 $465.13 $70.41 $56.73

120240 27.76 $367.76 $51.14 $44.85

120242 16.57 $219.61 $40.53 $26.78

120189 19.85 $218.33 $40.44 $26.63

998174 9.10 $100.05 $32.00 $12.20

120246 11.88 $130.65 $34.18 $15.93

965799 14.12 $187.14 $40.38 $22.82

120227 7.08 $93.86 $31.55 $11.45

679095 7.93 $87.22 $31.07 $10.64

998480 26.59 $319.07 $47.65 $38.92

695413 68.28 $904.67 $109.40 $58.78

998359 70.35 $1,301.52 $117.90 $93.05

695775 64.48 $886.58 $158.54 $63.39

998499 61.20 $1,025.17 $109.81 $73.29

966553 80.00 $1,750.00 $295.96 $118.61

965878 80.00 $1,807.70 $209.40 $137.91

100707 80.00 $2,132.31 $339.80 $147.85

695415 80.00 $1,442.31 $188.82 $107.74

966230 80.00 $1,520.00 $201.63 $96.90

998400 49.47 $556.49 $96.53 $40.31

997938 65.68 $722.44 $107.37 $52.27

998170 13.72 $144.03 $29.66 $11.24

966557 9.98 $104.82 $26.84 $8.18

997728 21.31 $213.14 $39.89 $16.63

965980 80.00 $1,423.08 $203.17 $99.46

965840 65.97 $1,187.38 $172.88 $79.24

120161 61.10 $870.63 $121.28 $68.76

998366 50.20 $577.35 $106.24 $42.36

120215 22.07 $242.82 $42.72 $19.18

120028 10.38 $108.98 $33.14 $8.61

966203 8.51 $85.07 $31.44 $6.72

966529 80.00 $1,923.08 $322.53 $148.37

120229 45.82 $503.99 $46.12 $42.59

120029 36.90 $405.95 $39.11 $34.30

120188 40.76 $448.32 $42.15 $37.89

120238 39.98 $419.74 $40.10 $35.47

120207 27.37 $261.39 $28.78 $22.09

998447 6.99 $67.77 $14.93 $5.73

112303 77.64 $1,008.53 $152.67 $66.09

679146 57.78 $837.23 $105.42 $54.82

100380 80.00 $1,667.81 $135.76 $102.98

112416 80.00 $1,760.66 $237.96 $117.24

998367 82.28 $905.11 $153.80 $67.59

997785 55.28 $608.04 $119.09 $45.40

997693 41.24 $422.69 $86.08 $31.56

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 23 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

680228 84.73 $1,016.80 $105.25 $75.93

965881 80.00 $1,846.16 $295.49 $131.19

679441 78.14 $1,415.15 $212.82 $123.60

657202 87.39 $1,354.50 $197.79 $134.28

679750 68.85 $843.47 $163.12 $82.77

997739 71.73 $878.73 $153.52 $86.23

680376 74.02 $888.27 $175.11 $92.15

997495 80.90 $970.83 $190.27 $98.71

120085 60.12 $766.57 $115.89 $79.52

679303 40.39 $568.32 $77.76 $58.96

679301 26.99 $347.84 $62.00 $36.08

120276 41.13 $473.00 $70.95 $49.07

120164 52.11 $599.25 $88.28 $62.17

120279 38.20 $439.29 $68.53 $45.57

120204 67.81 $779.77 $118.07 $80.89

120232 65.97 $758.60 $114.58 $78.70

996588 44.33 $487.63 $102.95 $50.59

997699 56.40 $620.40 $125.93 $64.36

120127 52.93 $635.19 $94.21 $65.89

120103 38.94 $457.51 $69.84 $47.46

120114 40.07 $440.79 $68.66 $45.73

120076 41.40 $455.38 $69.68 $47.24

120154 38.15 $419.60 $67.12 $43.53

120108 24.48 $269.30 $56.38 $27.94

998563 51.72 $581.89 $85.42 $60.37

998560 60.73 $683.25 $102.14 $70.88

998494 68.55 $959.77 $148.55 $94.18

657597 80.00 $1,705.89 $305.46 $179.12

678527 80.00 $1,752.89 $348.03 $184.05

679309 80.00 $1,961.54 $342.01 $188.97

679307 80.00 $2,692.31 $277.46 $160.02

998538 83.13 $1,330.05 $179.68 $113.85

120274 81.11 $1,297.70 $142.25 $118.25

998539 93.51 $1,496.12 $279.55 $138.29

656980 84.69 $1,355.05 $197.78 $115.88

120018 54.28 $637.80 $58.09 $58.43

998134 21.04 $241.92 $25.28 $22.04

966377 49.31 $542.85 $73.48 $46.71

680341 84.87 $891.16 $135.08 $76.99

680111 73.84 $751.70 $114.68 $69.37

998287 23.56 $235.61 $16.84 $21.47

966373 20.54 $205.44 $14.68 $18.72

998139 21.51 $215.07 $15.37 $19.60

120051 74.44 $744.40 $75.10 $67.83

966276 15.91 $159.11 $11.37 $14.50

120168 76.73 $767.30 $80.79 $70.98

120192 69.28 $692.83 $69.30 $64.63

657423 85.80 $1,029.64 $73.71 $88.15

997604 79.62 $1,035.04 $160.30 $88.51

997486 0.00 $0.00 $0.00 $0.00

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 24 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

966300 66.32 $842.91 $109.81 $76.03

101144 80.00 $1,736.54 $278.84 $152.11

657913 80.00 $1,910.16 $342.03 $168.06

998360 80.00 $1,730.77 $319.11 $158.37

111591 80.00 $2,432.80 $454.11 $179.39

112793 80.00 $1,716.31 $260.96 $157.04

657076 80.00 $1,538.47 $1.62 $2.06

120285 80.00 $1,538.47 $1.59 $2.03

966132 72.61 $1,361.44 $245.11 $89.46

100158 73.11 $1,608.49 $267.03 $95.62

656635 81.27 $1,584.70 $307.12 $113.30

120273 53.04 $795.60 $130.10 $79.19

679463 30.71 $437.60 $77.85 $43.56

678681 37.61 $620.57 $132.61 $61.77

966402 60.51 $998.39 $200.30 $99.37

680372 34.69 $582.09 $94.35 $54.67

680778 42.89 $697.32 $146.35 $69.40

997737 69.69 $1,177.75 $148.17 $112.17

679581 45.43 $567.90 $123.51 $56.52

120261 78.48 $1,000.68 $165.50 $99.60

966452 45.43 $613.33 $131.31 $61.05

966119 46.41 $626.48 $133.67 $58.84

658346 73.31 $1,209.54 $243.55 $95.03

120150 25.13 $326.75 $69.93 $32.52

657704 34.43 $447.62 $104.10 $44.55

695414 49.58 $644.59 $105.20 $64.16

680974 18.92 $285.66 $66.98 $28.43

998525 10.29 $154.40 $57.60 $15.37

998066 25.51 $382.63 $95.06 $38.08

966501 23.74 $356.15 $72.82 $35.45

680047 36.34 $555.96 $90.06 $55.34

681010 44.69 $676.22 $142.59 $67.31

680867 37.52 $567.00 $123.35 $56.44

997755 14.49 $217.32 $67.79 $21.63

998380 44.37 $665.59 $94.15 $66.25

120224 24.08 $284.09 $66.87 $28.28

120065 23.98 $281.75 $66.70 $28.04

998492 14.54 $174.50 $59.04 $17.37

120173 50.78 $863.30 $141.27 $85.93

120177 69.15 $1,037.31 $172.24 $103.25

120182 57.97 $869.59 $142.31 $86.55

965877 80.62 $1,209.37 $238.09 $120.37

114052 85.49 $1,320.01 $257.91 $123.98

657313 78.07 $1,327.14 $243.82 $94.88

965910 73.46 $973.29 $131.73 $71.81

120191 65.46 $981.94 $162.07 $97.74

997687 71.60 $1,020.36 $165.30 $92.82

120175 91.59 $1,694.45 $303.09 $174.17

111175 80.00 $1,730.77 $313.14 $124.53

680225 80.00 $2,250.00 $367.30 $154.31

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 25 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

112800 80.00 $4,500.00 $909.99 $344.25

679283 76.42 $2,207.36 $393.56 $151.50

679678 80.00 $2,286.58 $401.18 $174.92

678710 80.00 $2,283.77 $232.93 $174.45

695643 80.00 $1,581.54 $231.52 $107.93

657139 80.00 $1,538.85 $316.43 $117.72

997982 80.00 $2,153.85 $410.82 $153.44

679556 80.00 $2,250.00 $483.22 $172.13

997656 80.00 $2,923.08 $623.06 $219.25

997952 55.31 $594.56 $58.82 $56.96

998022 57.77 $606.58 $85.23 $54.71

998181 36.27 $380.87 $64.53 $36.48

120234 43.44 $445.28 $48.15 $42.66

120247 37.28 $382.11 $43.64 $36.60

998112 3.67 $34.87 $18.81 $3.34

120035 4.65 $45.38 $19.56 $4.35

695303 42.50 $413.95 $69.98 $39.65

120248 40.39 $383.73 $43.76 $36.76

997752 80.00 $1,461.54 $227.95 $107.63

680158 80.00 $1,368.00 $251.79 $104.65

120162 73.58 $1,250.93 $213.04 $116.38

120093 78.93 $1,341.88 $201.90 $110.74

998284 64.77 $615.29 $363.34 $131.11

966431 52.46 $511.51 $117.90 $47.59

112641 61.66 $616.64 $358.07 $132.49

120081 10.33 $103.26 $55.54 $9.61

120109 59.86 $598.56 $99.20 $55.69

120202 11.29 $112.89 $56.22 $10.50

120244 26.44 $231.35 $64.68 $21.52

120163 40.29 $402.86 $76.96 $37.48

120082 17.47 $174.73 $60.65 $16.26

120142 76.36 $992.62 $119.12 $92.35

965978 68.94 $689.40 $367.62 $137.45

695621 71.48 $821.97 $132.98 $71.87

120089 76.51 $841.56 $139.29 $78.30

100055 80.00 $2,266.81 $371.42 $168.61

695618 80.00 $1,673.07 $260.39 $110.99

120092 88.69 $1,576.93 $229.53 $152.47

120120 80.00 $1,846.15 $281.26 $172.71

998495 87.99 $1,231.81 $134.25 $89.27

120252 87.24 $1,570.27 $227.08 $126.27

120099 57.84 $607.36 $52.49 $48.25

120283 11.72 $123.02 $8.80 $9.77

120264 53.51 $561.86 $44.98 $44.63

997702 35.89 $376.82 $46.13 $29.93

120263 47.34 $497.04 $35.54 $39.48

120220 74.29 $965.77 $112.53 $76.72

111308 41.08 $1,269.13 $161.71 $97.09

679460 70.26 $913.33 $128.46 $61.39

120245 34.27 $359.86 $25.74 $33.16

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 26 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

120159 33.97 $356.71 $25.50 $32.87

120198 40.31 $413.15 $29.53 $38.07

678889 30.61 $324.49 $23.20 $29.90

997657 22.20 $233.13 $22.97 $18.91

695341 63.10 $630.98 $87.91 $57.28

658188 37.21 $382.94 $47.12 $35.29

997643 64.01 $672.08 $95.26 $58.59

998298 18.03 $159.92 $11.75 $14.74

997611 21.87 $191.59 $16.99 $17.65

998131 33.74 $295.20 $21.10 $27.20

120230 34.43 $327.11 $23.39 $30.14

998393 16.62 $149.55 $10.70 $13.78

120077 16.54 $140.61 $10.06 $12.96

997990 5.24 $48.50 $3.46 $4.47

120047 40.49 $364.40 $26.05 $33.58

998474 48.85 $464.03 $33.18 $42.76

966160 66.63 $599.66 $84.98 $55.26

658383 62.76 $793.86 $97.25 $56.76

998166 68.38 $854.80 $69.28 $61.11

695314 67.34 $740.69 $110.88 $64.10

657537 77.56 $947.84 $134.98 $63.99

657664 43.63 $538.89 $66.29 $35.94

120134 86.30 $1,208.14 $158.50 $112.07

657155 80.00 $1,368.00 $199.12 $89.86

656709 80.00 $1,493.24 $220.15 $112.34

658479 80.00 $1,809.44 $256.91 $138.42

657669 80.00 $1,442.31 $202.28 $96.26

657201 80.00 $1,573.89 $233.92 $103.79

965916 80.00 $1,923.08 $248.24 $147.12

112302 80.00 $1,634.62 $243.05 $115.19

679230 32.54 $344.91 $68.00 $28.21

120262 36.32 $381.32 $54.26 $31.18

120042 4.57 $42.26 $30.02 $3.46

120167 19.30 $171.22 $39.24 $14.00

679209 74.89 $917.39 $124.35 $59.03

657601 80.00 $1,745.81 $292.63 $131.44

695411 25.72 $257.23 $42.10 $20.07

997610 83.20 $790.43 $131.72 $61.68

120112 26.99 $236.12 $32.12 $18.43

678744 80.00 $1,384.62 $144.45 $99.14

112064 80.00 $1,737.40 $28.53 $13.29

120019 36.55 $365.51 $50.46 $28.59

120111 26.02 $234.20 $41.08 $18.32

695644 70.10 $788.58 $140.47 $57.26

111147 80.00 $2,005.89 $351.53 $139.05

658519 96.61 $1,666.53 $222.93 $114.61

997692 81.23 $974.81 $158.43 $89.21

656580 80.00 $2,303.31 $424.67 $164.87

100000 100.00 $1,325.00 $101.36 $109.31

100001 $7,342.26 $561.68 $605.74

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 27 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

100002 160.00 $3,527.31 $269.84 $291.00

25,909.44 $428,708.55 $64,437.77 $34,462.80

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 28 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

256 0.00 $4,807.69 $371.32 $1,194.08

257 0.00 $3,000.00 $229.50 $622.66

255 0.00 $2,884.62 $220.67 $588.46

165 0.00 $2,692.31 $194.63 $397.05

251 0.00 $2,692.31 $196.66 $495.39

118 0.00 $1,791.47 $100.75 $205.21

254 0.00 $1,711.54 $119.60 $242.39

140 0.00 $1,561.54 $109.53 $236.37

253 0.00 $1,519.23 $106.58 $204.60

210 0.00 $1,461.54 $111.81 $293.09

261 38.58 $578.70 $50.23 $54.45

260 38.83 $582.45 $50.56 $55.11

238 0.00 $3,846.16 $55.77 $716.07

56 0.00 $4,615.39 $342.90 $1,111.58

84 0.00 $4,489.43 $346.97 $980.76

83 0.00 $3,801.12 $270.01 $802.27

57 0.00 $3,353.62 $260.08 $416.85

72 0.00 $3,315.16 $211.72 $406.22

150 0.00 $2,787.35 $203.05 $592.91

149 0.00 $2,313.08 $163.52 $419.35

148 0.00 $2,308.24 $101.18 $214.93

193 0.00 $2,082.28 $138.93 $286.90

203 0.00 $2,027.12 $145.57 $299.36

184 0.00 $1,924.24 $147.20 $359.54

211 0.00 $1,884.62 $130.94 $246.38

186 0.00 $1,826.93 $139.76 $347.61

233 0.00 $1,769.24 $127.12 $268.82

250 0.00 $1,730.77 $132.40 $275.28

135 0.00 $5,288.47 $76.68 $343.50

115 0.00 $6,031.74 $376.97 $832.56

195 0.00 $2,746.16 $174.06 $469.94

224 0.00 $7,884.63 $567.86 $1,384.60

243 0.00 $3,846.15 $266.71 $588.79

230 0.00 $2,115.39 $150.50 $311.60

262 42.75 $1,068.75 $92.77 $93.25

249 74.00 $1,406.00 $107.56 $171.76

216 82.00 $1,461.68 $94.03 $94.03

68 0.00 $5,510.00 $383.66 $1,284.83

177 0.00 $4,952.89 $371.35 $1,146.68

258 0.00 $2,423.07 $207.55 $451.60

239 0.00 $2,346.16 $179.48 $379.64

208 0.00 $2,342.31 $162.95 $354.41

227 0.00 $3,076.93 $229.54 $632.13

259 0.00 $2,884.62 $220.67 $220.66

179 0.00 $2,769.24 $213.61 $603.39

95 0.00 $2,307.70 $145.23 $145.24

235 80.00 $1,200.00 $104.16 $190.82

219 0.00 $5,192.31 $350.87 $780.52

209 0.00 $5,000.00 $386.07 $1,214.48

63 0.00 $4,891.85 $359.05 $1,509.09

218 0.00 $4,847.77 $348.63 $1,174.26

228 0.00 $4,038.46 $314.24 $953.19

168 0.00 $3,881.97 $250.15 $622.10

998326 0.00 $3,846.16 $285.14 $1,120.31

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 29 of 34
EE File # Total Hours Gross Pay EE Withholdings ER Contributions

215 0.00 $3,293.74 $245.43 $735.43

189 0.00 $2,903.08 $181.37 $511.26

356.16 $168,915.38 $11,625.29 $30,653.74

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 30 of 34
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) PAY CERTAIN PREPETITION EMPLOYEE OBLIGATIONS AND MAINTAIN 

AND CONTINUE EMPLOYEE BENEFITS AND PROGRAMS; AND (II) FOR BANKS

AND OTHER FINANCIAL INSTITUTIONS TO HONOR AND PROCESS CHECKS 

AND TO HONOR TRANSFERS RELATED TO SUCH OBLIGATIONS 

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

upon the Debtors’ Emergency Motion for Authorization to (i) Pay Certain Prepetition Employee 

Obligations and Maintain and Continue Employee Benefits and Programs; and (ii) for Banks 

and Other Financial Institutions to Honor and Process Checks and to Honor Transfers Related 

to Such Obligations (the “Motion”), pursuant to 11 U.S.C. § 105(a), 363(b) and 507(a)(4), 

EXHIBIT B

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 31 of 34
2

Federal Rule of Bankruptcy Procedure 6003, and Local Rules 9013-1(F) and (I) and 9075-1. The 

Court having reviewed the Motion and having heard the statements of counsel in support of the 

relief requested in the Motion at the hearing before the Court (the “Hearing”) and the Court 

finding 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 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) the Court having determined that the legal and factual bases set forth 

in the Motion and at the Hearing establish just cause for the relief granted herein on an interim 

basis, it is accordingly: 

ORDERED AND ADJUDGED as follows: 

1. The Motion is GRANTED nunc pro tunc to the Petition Date, September 22, 

2020. 

2. The Debtors1

 are authorized, but not directed, to pay and/or honor the Prepetition 

Employment Obligations, Payroll Tax Obligations, Business Expenses, Travel Expenses, 

Miscellaneous Expenses, and Employee Benefit Obligations; provided however, that payments 

to Employees on account of any such unpaid wages and salaries shall not exceed the amounts 

afforded priority status by section 507(a)(4) of the Bankruptcy Code. 

3. All of the Debtors’ banks are authorized and directed to receive, process, honor 

and pay any and all checks or electronic transfers drawn on the Debtors’ payroll and general 

disbursement accounts related to ordinary course wages and salaries, business expenses and 

other compensation, including the Prepetition Employment Obligations, including any uncashed 

checks that were issued prior to the Petition Date with respect thereto, whether presented before 

1

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

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 32 of 34
3

or after the Petition Date, provided that sufficient funds are on deposit in the applicable account 

to cover such payments. 

4. The Debtors are authorized, but not directed, to continue their practices, programs 

and policies in effect as of the Petition Date with respect to all Prepetition Employment 

Obligations, Payroll Tax Obligations, Business Expenses, Travel Expenses, Miscellaneous 

Expenses, and Employee Benefit Obligations. 

5. Nothing herein or in the Motion, nor any payments made by the Debtors pursuant 

to this Motion, shall be deemed an assumption or rejection of any Employee Benefit Plans, 

employment agreement, other program or contract, or otherwise affect the Debtors’ rights under 

section 365 of the Bankruptcy Code to assume or reject any executory contract between the 

Debtors and any Employee. 

6. The Debtors, their officers, employees and agents, are authorized to take or 

refrain from taking such acts as are necessary and appropriate to implement and effectuate the 

relief granted herein. 

7. Entry of this Order is not intended nor should be construed as an admission as to 

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

claim, or an approval or assumption of any agreement, contract, or lease under section 365 of the 

Bankruptcy Code. Moreover, any payment made pursuant to this Order is not intended and 

should not be construed as an admission as to the validity of any claim or a waiver of the 

Debtors’ rights to subsequently dispute such claim. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 33 of 34
4

8. The Court shall retain jurisdiction to hear and determine all matters arising from 

or relating to the interpretation or implementation 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. 

Case 20-20259-RAM Doc 12 Filed 09/23/20 Page 34 of 34