THE LANE LAW FIRM, PLLC

Robert C. Lane

State Bar No. 24046263

notifications@lanelaw.com

6200 Savoy, Suite 1150

Houston, Texas 77036

(713) 595-8200 Voice

(713) 595-8201 Facsimile

PROPOSED COUNSEL FOR DEBTOR

IN THE UNITED STATES BANKRUPTCY COURT

 FOR THE NORTHERN DISTRICT OF TEXAS

 DALLAS DIVISION

IN RE: §

FREDRICK LEE PRESS PLUMBING, LLC §

DEBTOR § BANKRUPTCY CASE NO. 23-32662

DEBTOR’S MOTION FOR ENTRY OF AN ORDER AUTHORIZING PAYMENT OF PREPETITION WAGES IN THE ORDINARY COURSE OF BUSINESS

NO HEARING WILL BE CONDUCTED ON THIS MOTION UNLESS A WRITTEN OBJECTION 

OR REQUEST FOR HEARING IS FILED WITH THE UNITED STATES BANKRUPTCY 

CLERK, 1100 COMMERCE STREET, ROOM 1254, DALLAS, TEXAS 75242-1496, WITHIN 

TWENTY-ONE (21) DAYS FROM THE DATE OF THE FILING OF THIS MOTION, UNLESS 

THE COURT, SUA SPONTE, OR UPON TIMELY APPLICATION OF A PARTY IN INTEREEST, 

SHORTENS OR EXTENS THE TIME FOR FILING SUCH OBJECTION OR REQUEST FOR 

HEARING.

IF NO OBJECTION OR REQUEST FOR HEARING IS TIMELY FILED, THE MOTION SHALL 

BE DEEMED TO BE UNOPPOSED AND THE COURT MAY ENTER AN ORDER GRANTING 

THE RELIEF SOUGHT. THE COURT RESERVES THE RIGHT TO SET ANY MATTER FOR 

HEARING. 

TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE:

COMES NOW, Fredrick Lee Press Plumbing, LLC (the “Debtor”), and hereby moves this Court 

for entry of an order pursuant to 11 U.S.C. §§105(a), 363 and 507(a)(4)-(5) (the “Bankruptcy Code”)

authorizing payment of pre-petition wages in the ordinary course of business for its W-2 Employees postpetition (the “Motion”) in the ordinary course of business, and respectfully represent as follows:

I. JURISDICTION AND VENUE

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

action is a core proceeding pursuant to 28 U.S.C. § 157(b). Venue is proper before this Court 

pursuant to 28 U.S.C. §§ 1408 and 1409.

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II. FACTUAL BACKGROUND

2. On November 14, 2023 ("Petition Date"), the Debtor filed a voluntary petition for relief under 

Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101-1532 ("Bankruptcy Code").

3. The Debtor continues to manage and operate its retail and commercial repair and service plumbing

business as Debtor-In-Possession pursuant to §§1107 and 1108 of the Bankruptcy Code. 

4. The Debtor employs W-2 employees to perform the repair and service plumbing services. 

5. The Debtor does pay wages, withhold taxes for its W-2 employees. 

6. There are sixteen (16) W-2 employees owed their regularly-scheduled paychecks from before the 

filing date of November 14, 2023, as the next pay date is November 17, 2023. The total amount of 

prepetition wages that needs to be paid for the November 17, 2023 payroll is approximately 

$59,000.00. If the W-2 employees remain unpaid and are required (individually) to file claims, they 

will suffer great hardship and will likely terminate their relationship with the Debtor, causing 

unnecessary harm to the Debtor. All wages being paid are within the priority wage cap under 11 

U.S.C. §507(a)(4).

III. RELIEF SOUGHT

7. The Debtor seeks an order of the Court authorizing payment in the ordinary course of business of 

certain pre-petition compensation owed to its W-2 employees.

8. The Debtor incurs payment obligations to its W-2 employees for the performance of their services 

in the ordinary course of business. 

9. The Debtor requests authority to pay accrued compensation for services performed by the W-2 

employees as of the Petition Date. As of the Petition Date, accrued and unpaid compensation totals 

to approximately $59,000.00.

10. All of the W-2 employees that Debtor proposes to pay will have a priority claim for unpaid services 

rendered under §507(a)(4)(B) of the Bankruptcy Code. The Debtor has, or will have, sufficient 

funds on deposit to satisfy all the pre-petition W-2 Employee Obligations so that the banks will not 

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be prejudiced by any order directing them to honor the Debtor’s checks for fund transfer requests 

with respect to such amounts. 

11. The Debtor estimates that as of the Petition Date, amounts accrued for unpaid pre-petition W-2 

Employees should not exceed approximately $65,000.00.

IV. LEGAL AUTHORITIES IN SUPPORT OF THE RELIEF SOUGHT

12. Sections 507(a)(4) and (5) of the Bankruptcy Code provide priority status for prepetition claims for 

wages, salaries, commissions, severance pay, vacation pay, sick leave pay, and contributions to 

employee benefit plans in an amount not to exceed $15,150.00 per employee. For a plan or 

reorganization to be confirmed, Section 1129 requires payment of priority claims under 11 U.S.C. 

§507(a)(4) and (5). Because the Employee Claims would be entitled to priority status under 11 

U.S.C. §507(a)(4) and (5) and because such Employee Claims must be paid to confirm a plan of 

reorganization, Debtor’s payment of such claims as requested herein should neither prejudice 

general unsecured creditors nor materially affect the Debtor’s estate.

13. 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). 

14. Section 363(c) of the Bankruptcy Code provides:

If the business of the debtor is authorized to be operated under section 721, 1108, 

1203, 1204, or 1304 of this title and unless the court orders otherwise, the trustee 

may enter into transactions, including the sale or lease of property of the estate, in 

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

of the estate in the ordinary course of business without notice or a hearing. 11 

U.S.C. § 363(c).

15. Additionally, the “necessity of payment” doctrine 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 the continued operation of the debtor. In re Ionosphere Clubs, Inc., 98 B.R. 174, 176 

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(Bankr. S.D.N.Y. 1989). This doctrine is consistent with the paramount goal of chapter 11 of 

“facilitating the continued operation and rehabilitation of the debtor.” Id. at 176.

16. In the instant case, the continued operation of the Debtor’s business and its successful 

reorganization depends upon retention of the services of its W-2 employees. It is critical that the 

Debtors be authorized to continue regular payment of its W-2 employees. Moreover, if the checks 

issued and funds transfers requested in payment of the Pre-petition W-2 employees are dishonored, 

or if such accrued obligations are not timely paid post-petition, the Debtor’s W-2 employees will 

suffer extreme personal hardship and will likely terminate their relationship with the Debtor. This 

would force the Debtor to seek new W-2 employees to perform its service and repair plumbing 

services.

17. Further, the authority to pay Pre-petition W-2 employees Obligations in accordance with the 

Debtor’s pre-petition business practices is in the best interest of the Debtor, the Debtor’s estate, and 

creditors, and will enable the Debtor to continue to operate its business in an economic, efficient 

manner without disruption. Because Debtor’s W-2 employees are central to Debtor’s operations 

and vital to its reorganization, the loss of personnel at this critical time would have a serious impact 

on the value of the Debtor’s business, and its ability to reorganize under Chapter 11..

PRAYER

WHEREFORE, PREMISES CONSIDERED, the Debtor respectfully requests entry of an order 

granting relief requested herein, and such other and further relief as is just and proper.

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Respectfully submitted,

THE LANE LAW FIRM, PLLC

/s/Robert C. Lane

Robert C. Lane

State Bar No. 24046263

notifications@lanelaw.com

Joshua Gordon

State Bar No. 24091592

Joshua.gordon@lanelaw.com

6200 Savoy, Suite 1150

Houston, Texas 77036

(713) 595-8200 Voice

(713) 595-8201 Facsimile

PROPOSED COUNSEL FOR DEBTOR

CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the Debtor’s Motion for Entry of an Order 

Authorizing Pre-Petition W-2 Employee Obligations Post-Petition was served upon the US Trustee and to 

the parties listed on the service list below and the attached mailing matrix either via electronic notice by the 

court’s ECF noticing system or by United States first class mail, postage prepaid, on November 14, 2023:

Debtor:

Fredrick Lee Press Plumbing, LLC

9056 FM 1641 

Terrell, Texas 75160

US Trustee:

Office of the U.S. Trustee: 

1100 Commerce Street

Room 976

Dallas, TX 75242

Parties Requesting Notice

ustpregion06.da.ecf@usdoj.gov

/s/Robert C. Lane

Robert C. Lane

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 Label Matrix for local noticing Fredrick Lee Press Plumbing, LLC U.S. Attorney 

 0539-3 9056 FM 1641 1100 Commerce, 3rd Floor 

 Case 23-32662-mvl11 Terrell, TX 75160-7366 Dallas, TX 75242-1074 

 Northern District of Texas 

 Dallas 

 Tue Nov 14 13:44:20 CST 2023 

 U.S. Attorney General 1100 Commerce Street Berkovitch & Bouskila, PLLC 

 Department of Justice Room 1254 1545 US 202 Suite 101 

 Washington, DC 20001 Dallas, TX 75242-1305 Pomona, NY 10970-2951 

 

 Bizfund LLC Blue Ribbon Funding Brandy Press-Smith 

 2371 Mcdonald Ave 2nd Fl 1317 Edgewater Drive Suite 1845 9056 FM 1641 

 Brooklyn, NY 11223-4738 Orlando, FL 32804-6350 Terrell, TX 75160-7366 

 Ershowsky Verstandig (p)FORD MOTOR CREDIT COMPANY Fox Capital Group, Inc. 

 290 Central Avenue Suite 109 P O BOX 62180 803 S 21st Avenue 

 Lawrence, NY 11559-8507 COLORADO SPRINGS CO 80962-2180 Hollywood, FL 33020-6962 

 Fredrick Lee Press Fundation Group LLC Global Merchant Cash Inc. 

 9056 FM 1641 11501 Sunset Hills Road Suite 100 640 Beavers Street 415 

 Terrell, TX 75160-7366 Reston, VA 20190-6700 New York, NY 10004 

 Knightsbridge Funding LLC Mercedes Benz Financial Nathaniel Smith 

 40 Wall Street Suite 2903 PO Box 685 9056 FM 1641 

 New York, NY 10005-1304 Roanoke, TX 76262-0685 Terrell, TX 75160-7366 

 Neubert, Pepe & Monteith, P.C. Newtek Small Business Finance Samson Funding 

 195 Church Street, 13th Floor 1981 Marcus Ave Suite 130 17 State Street, 6th Floor Suite 630 

 New Haven, CT 06510-4011 New Hyde Park, NY 11042-1046 New York, NY 10004-1749 

 Samson Group Swift Funding Source Inc The Lane Law Firm 

 400 Rella Blvd Suite 165-101 2474 McDonald Ave 6200 Savoy Dr Ste 1150 

 Suffern, NY 10901-4241 Brooklyn, NY 11223-5233 Houston, TX 77036-3369 

 U.S. Small Business Administration United States Trustee Zahav Asset Management LLC 

 Loan Servicing Center 1100 Commerce Street 234 Cedarhurst Ave. Apt. 21B 

 2120 Riverfront Drive Suite 100 Room 976 Cedarhurst, NY 11516-1608 

 Little Rock, AR 72202-1794 Dallas, TX 75242-0996 

 Robert Lane 

 The Lane Law Firm 

 6200 Savoy, Suite 1150 

 Houston, TX 77036-3369 

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 The preferred mailing address (p) above has been substituted for the following entity/entities as so specified 

 by said entity/entities in a Notice of Address filed pursuant to 11 U.S.C. 342(f) and Fed.R.Bank.P. 2002 (g)(4). 

 Ford Motor Credit Company LLC 

 c/o National Bankruptcy Service Center 

 PO Box 62180 

 Colorado Springs, CO 80962 

 The following recipients may be/have been bypassed for notice due to an undeliverable (u) or duplicate (d) address. 

 (d)Fredrick Lee Press Plumbing, LLC End of Label Matrix 

 9056 FM 1641 Mailable recipients 27 

 Terrell, TX 75160-7366 Bypassed recipients 1 

 Total 28 

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