UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

 MIAMI DIVISION

 www.flsb.uscourts.gov

In re:

BEACH ON DUVAL , LLC CASE NO. 20-20904-AJC

 Debtor-in-possession / Chapter 11

EMERGENCY MOTION FOR

INTERIM AND FINAL APPROVAL OF USE OF CASH COLLATERAL

Preliminary Hearing Requested on November 19, 2020 at 2:00 p.m.

The nature of the emergency is that the landlord and the secured creditor have

agreed, subject to the approval of the Court, to the use of cash collateral to maintain

rent and permit the Debtor’s operations to continue, subject to payments being

made no later than Friday, November 20, 2020.

SUMMARY OF RELIEF SOUGHT

• The Debtor will be permitted to use cash collateral to continue operations, maintain

insurance, and cure post-petition rent arrears.

• The lender will receive a replacement lien, monthly payments of $6500, and site visits

BEACH ON DUVAL , LLC, Debtor-in-possession moves pursuant to 11 U.S.C. §363,

Bankruptcy Rule 4001(c),(d), Local Rules 4001, 9013-1(F) and (G), and in substantial compliance with

this Court’s “Guidelines for Motions Seeking Authority to Use Cash Collateral...” for entry of an order

authorizing the use of cash collateral, and says:

1. This case was commenced on October 6, 2020 under Chapter 11.

2. The Debtor has remained as Debtor-in-possession.

3. Substantially all of the Debtor’s assets are encumbered by a first-position lien on all business

assets and the liquor license related to an “SBA 7(a) loan” from the U.S. Small Business

Administration, administered through First-Citizens Bank & Trust Company, successor by

merger to Entegra Bank (“First-Citizens”). Entegra Bank is secured through the filing of a form

UCC-1 with the Florida Secretary of State, such filing having been of record as of August 15,

2017.

4. The approximate outstanding amount of the loan is $1,100,000.

5. Any other parties which might assert an interest in the Debtor’s cash collateral are believed to be

subordinate to First-Citizens.

6. Through a tri-party negotiation between and among the Debtor, counsel for First Citizens Bank,

and the Debtor’s landlord (135 Duvall Company, LLC), the parties have agreed in principle, and

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subject to the approval of the Court, to the use of cash collateral, as reflected on the budget

attached as Exhibit A hereto.

7. The purposes for the use of the cash collateral are to continue in the normal operations of the

Debtor, which operates a facility in which are a located a live-music complex a bar, tavern, cigar

lounge, and film and sound studio.

8. First-Citizens shall be granted a replacement lien on all assets of the Debtor, will receive

payment of $6500 per month, and will be granted access for site visits on short notice.

9. The initial term of the consensual use of cash collateral shall be 60 days, with anticipated

renewals for additional periods of 60 days until or unless the Debtor confirms a Plan, the case is

dismissed, or the case is converted to a liquidation.

Wherefore, the Debtor respectfully requests an order authorizing then use of cash collateral, on

an interim basis, with a final hearing to be set more than 14 days hence.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing and the attached exhibits

were served via notice of electronic filing on November 16, 2020 to all parties receiving electronic

notice, including: Daniel Gielchinsky on behalf of Creditor 135 Duvall Company, LLC,

dan@dyglaw.com; Casey Reeder Lennox on behalf of Creditor First-Citizens Bank & Trust Company

clennox@lennoxlaw.com, eservice@lennoxlaw.com;alennox@lennoxlaw.com; and Office of the US

Trustee; USTPRegion21.MM.ECF@usdoj.gov. All other interested parties shall be served with this

Motion and the Notice of Hearing upon issuance of the Notice.

Respectfully submitted,

FLORIDA BANKRUPTCY GROUP, LLC.

4121 N 31st Avenue

Hollywood, Fl 33021-2011

954-893-7670/954-252-2540 Fax

By: s/ Kevin C Gleason 

Fla Bar No. 369500

BankruptcyLawyer@aol.com

Case 20-20904-AJC Doc 39 Filed 11/16/20 Page 2 of 7
Exhibit A

Cash Budget

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Case 20-20904-AJC Doc 39 Filed 11/16/20 Page 4 of 7
Exhibit B

Proposed Order 

(subject to review and revisions by counsel for First Citizens)

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UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

 MIAMI DIVISION

 www.flsb.uscourts.gov

In re:

BEACH ON DUVAL , LLC CASE NO. 20-20904-AJC

 Debtor-in-possession / Chapter 11

ORDER GRANTING MOTION FOR INTERIM USE 

OF CASH COLLATERAL AND SETTING FINAL HEARING

This matter was brought before the court for hearing on November 19, 2020, at 2:00 p.m. on the

motion of BEACH ON DUVAL , LLC, for authorization to use cash collateral (the “Motion”) pursuant

to 11 U.S.C. §363(c)(2),(d), Bankruptcy Rule 4001(b), Local Rule 4001-2, and the Court’s Guidelines

for Motions Seeking Authority to Use Cash Collateral, and upon consideration of the record, good cause

appearing therein, it is

ORDERED that:

1. The Motion is granted on an interim basis as provided herein, a final hearing will be held in the

above matter at a.m./p.m. on , 2020, at the United States

Bankruptcy Court, C. Clyde Atkins United States Courthouse, 301 North Miami Avenue, Room

717/Courtroom 7 Miami, FL 33128.

To participate through CourtSolutions, you must make a reservation in advance no later

than 3:00 p.m., one business day before the date of the hearing. Reservations should be

arranged online at https://www.court-solutions.com If a party is unable to register online,

a reservation may also be made by telephone at (917) 746-7476.

**EFFECTIVE IMMEDIATELY** Until further notice or unless directed otherwise, the

court will ONLY hold hearings by TELEPHONE. Individuals not represented by counsel

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will be able to use the telephonic services FREE of charge. All attorneys shall advise their

clients NOT to appear at the courthouse.

2. The Debtor shall provide weekly reporting to First-Citizens Bank & Trust Company, successor

by merger to Entegra Bank ("First-Citizens") by 5:00 p.m. on Wednesday of each week with

accompanying bank statements or reports through the close of business each Tuesday.

3. The Debtor may use cash collateral subject to the lien of First-Citizens to maintain all insurances

and cure October “stub rent” in favor of the Debtor’s landlord, 135 Duvall Company, LLC.

(“Landord”) by the payment of $5000 on November 20, 2020, $10,000 on December 20, 2020,

and if the Court grants the use of cash collateral on a final basis at the hearing noticed above, the

Debtor shall continue to cure post-petition arrears to the Landlord by the payment of $10,000 on

January 20, 2021; $10,000 on February 20, 2021; and a final payment of $8,413.76 on March 20,

2021.

4. As adequate protection of the use of First-Citizens’ cash collateral:

a. First-Citizens is granted a continuing replacement lien on all property of the Debtor;

b. The Debtor shall pay the sum of $6,500 to First-Citizens on November 20, 2020,

December 20, 2020, and if the Court grants the use of cash collateral on a final basis at

the hearing noticed above, the Debtor shall continue to pay First-Citizens the sum of

$6500 on the 20th day of each successive month.

5. The Debtor shall permit site visits by representatives of First-Citizens upon 24 hours notice to

counsel for the Debtor.

6. In addition to the costs of normal operations of the Debtor, First-Citizens consents to the use of

cash collateral for payment of any fees due the clerk of the court or the United States trustee

pursuant to 28 U.S.C. §1930.

###

Submitted by: 

KEVIN C GLEASON

4121 N. 31st Ave.

Hollywood, FL 33021-2011

(954) 893-7670 Phone/(954)-893-7675 Fax

BankruptcyLawyer@aol.com

Kevin Gleason, Esq. is directed to serve a conformed copy of this Order upon all interested parties and to file a certificate of

service with the court. 

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