{"id":"court_ctb_1356_0","court":"CTB","case_no":"22-50073","doc_number":1356,"sub_number":0,"doc_type":"ORDER","filed_date":null,"title":"UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION In re:","summary_zh":null,"summary_en":null,"body_en":"## **UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION**\n\nIn re:\n\nHO WAN KWOK, *et al.*, 1\n\nDebtors.\n\nChapter 11\n\nCase No. 22-50073 (JAM)\n\n(Jointly Administered)\n\nJanuary 20, 2023\n\n## **REPLY OF THE SHERRY-NETHERLAND, INC. IN SUPPORT OF THE MOTION OF CHAPTER 11 TRUSTEE, GENEVER HOLDINGS CORPORATION, AND GENEVER HOLDINGS LLC, PURSUANT TO BANKRUPTCY CODE SECTION 327, 328, AND 363, FOR ENTRY OF ORDER FURTHER EXTENDING (I) SALE PROCESS OF SHERRY NETHERLAND APARTMENT AND (II) RETENTION OF SOTHEBY'S INTERNATIONAL REALTY AS BROKER**\n\nThe Sherry Netherland, Inc. (\"The Sherry Netherland\") respectfully submits this reply in\n\nsupport of the Motion.<sup>2</sup> In support of the Motion, The Sherry Netherland respectfully states as\n\nfollows:\n\n1. The Sherry Netherland is a residential cooperative housing corporation, within\n\nwhich the Sherry Netherland Apartment is located. The Sherry Netherland Apartment is titled in\n\nthe name of Genever (US) and memorialized by 3,050 cooperative shares allocable to apartments\n\n1801, MR 2219, MR 719, issued to Genever (US) under proprietary leases between The Sherry\n\n<sup>1</sup> The Debtors in these chapter 11 cases are Ho Wan Kwok (also known as Guo Wengui, Miles Guo, and Miles Kwok, as well as numerous other aliases) (last four digits of tax identification number: 9595), Genever Holdings LLC (last four digits of tax identification number: 8202) and Genever Holdings Corporation. The mailing address for the Trustee, Genever Holdings LLC, and the Genever Holdings Corporation is Paul Hastings LLP, 200 Park Avenue, New York, NY 10166 c/o Luc A. Despins, as Trustee for the Estate of Ho Wan Kwok (solely for purposes of notices and communications).\n\n<sup>2</sup> Capitalized terms used in this reply but not defined herein have the meanings given to them in the *Motion of Chapter 11 Trustee, Genever Holdings LLC, Pursuant to Bankruptcy Code Section 327, 328, and 363, for Entry of Order Further Extending (I) Sale Process of Sherry Netherland Apartment and (II) Retention of Sotheby's International Realty as Broker* [Case No. 22-50073, Docket No. 1257].\n\nNetherland, as lessor, and the Debtor, as lessee, entered into on March 6, 2015, appurtenant thereto (collectively, the \"Proprietary Lease\"). Genever (US) and The Sherry Netherland are also parties to, among other agreements, that certain Agreement and Consent with Respect to Shares and Proprietary Lease (the \"Agreement and Consent\"), made as of March 6, 2015, by and between the Sherry, as Lessor, the Debtor, as Lessee, and Mr. Kwok Ho Wan a/k/a Miles Kwok a/k/a Miles Guo, as Occupant.\n\n2. The Sherry Netherland Apartment is the only significant asset of Genever (US) and the only asset that has the potential to provide the unsecured creditors of Genever (US), if any, with a recovery. [Case No. 22-50592, Docket No. 4 at 3-6].\n\n3. The Sherry Netherland is the only undisputed and secured creditor of Genever (US). [Case No. 22-50592, Docket No. 4 at 6]; Proof of Claim No. 1-1 against Genever (US). Specifically, The Sherry Netherland has, among other actual or potential claims, (a) pre-petition claims for unpaid arrearages owed to The Sherry Netherland under the Proprietary Lease and the Lessor's Corporate Documents (as defined in the Agreement and Consent), including unpaid monthly payments of rent, additional rent, maintenance charges, assessments, attorneys' fees, interest, and late fees; and (b) post-petition claims for ongoing or future maintenance charges, assessments, attorneys' fees, interest, and late fees. The Sherry Netherland's pre-petition claims alone are in excess of at least \\$900,000.<sup>3</sup>\n\n4. In addition, as of the Petition Date, The Sherry Netherland held a security deposit in the sum of approximately \\$3 million (the \"Security Deposit\"). [Case No. 22-50592, Docket No. 165 at 12]. Pursuant to the *Consent Order Granting the Sherry-Netherland, Inc. Relief from*\n\n<sup>3</sup> The claims listed here are not meant to be exhaustive. The Sherry Netherland reserves all rights as to any claims it has asserted to date, or may assert in the future.\n\n*the Automatic Stay* [Case No. 22-50592, Docket No. 107], The Sherry Netherland is authorized \"to apply all accrued and owing post-petition maintenance fees and assessments due under the Proprietary Lease . . . on a monthly basis, from the [Security Deposit].\"\n\n5. All of The Sherry Netherland's claims and all additional unpaid amounts due, including unpaid amounts due to The Sherry Netherland in the future, are secured by the Sherry Netherland Apartment and the Security Deposit and have been guaranteed by the Individual Debtor. The Security Deposit is a finite source of funds and, if the Sherry Netherland Apartment is not sold within a reasonable time, the Security Deposit will be completely exhausted by accrued and owing post-petition maintenance fees and assessments due under the Proprietary Lease. Because the operating and capital expenses of The Sherry Netherland are funded by maintenance fees and assessments paid by the corporation's shareholders, the effect of the depletion of the Security Deposit will be to force the other shareholders of The Sherry Netherland to fund these expenses until the Sherry Netherland Apartment is sold.\n\n6. PAX and Bravo Luck both claim to be unsecured creditors of Genever (US) based on equitable arguments. PAX purports to be an unsecured creditor of the Individual Debtor and has nevertheless asserted a claim against Genever (US) on the basis that Genever (US) is an alter ego of the Individual Debtor. *See* Proof of Claim No. 5-1 against Genever (US). And Bravo Luck claims that it holds a beneficial interest in the Sherry Netherland Apartment and, based on that interest, it claims to be an unsecured creditor of Genever (US). *See* Proof of Claim No. 4-1 against Genever (US). The Trustee and Genever (US) are each separately challenging Bravo Luck's purported beneficial interest. *See* Adv. Proc. No. 22-05027; Adv. Proc. No. 22-05030.<sup>4</sup>\n\n<sup>4</sup> At this time, The Sherry Netherland takes no position on the merits of PAX and Bravo Luck's respective equitable arguments or on whether they are, in fact, unsecured creditors of Genever (US).\n\n7. The Sherry Netherland was involved in Genever (US)'s bankruptcy case when the Settlement Agreement was negotiated and put in place. At that time, equitable or beneficial ownership of the Sherry Netherland Apartment was embroiled in litigation, and PAX was seeking to litigate its concerns about Mr. Kwok's undue control over Genever (US) through the Lift Stay Motion and the Conversion Motion. [Case No. 22-50592, Docket No. 45.] Ongoing litigation between PAX and Bravo Luck was causing a distraction to the effective administration of Genever (US)'s bankruptcy case and hindered the ability of Genever (US) to effectuate a sale of the Sherry Netherland Apartment, its only significant asset. [*Id.*]. The Settlement Agreement seemingly removed that distraction by resolving PAX's concerns about Mr. Kwok's undue control over the sale of the Sherry Netherland Apartment and, accordingly, should have cleared the way for an efficient and commercially reasonable sale of the Sherry Netherland Apartment.\n\n8. It has now been over one year since the Settlement Agreement was signed and Genever (US) does not appear to be much closer to consummating the sale of the Sherry Netherland Apartment. The Sherry Netherland believes that Bravo Luck and PAX's consent and consultation rights in the Settlement Agreement are hindering the sale process. Instead of allowing the Sales Officer and Sotheby's to exercise their reasoned commercial discretion to market and ultimately sell the Sherry Netherland Apartment at an appropriate price under current market conditions, The Sherry Netherland believes that Bravo Luck and PAX are pursuing their own individual agendas at the expense of the estate of Genever (US) and to the detriment of The Sherry Netherland and its other shareholders. The Sherry Netherland supports the relief requested in the Motion, including the request that PAX and Bravo Luck shall have no further consent or consultation rights with respect to the marketing and sales process after October 31, 2022. The Sherry Netherland supports this relief because The Sherry Netherland supports the\n\n4\n\nefficient and commercially reasonable sale of the Sherry Netherland Apartment at an appropriate price under current market conditions and, at this time, believes the Motion provides the best path forward for achieving that value-maximizing result for the estate of Genever (US) and its stakeholders. The Sherry Netherland does not believe that delaying the sale in the speculative hope that the value of the Sherry Netherland Apartment will increase over time, or for any other reason, is in the interest of Genever (US) and its stakeholders.\n\n9. Largely for the reasons stated in the Motion, The Sherry Netherland agrees that PAX and Bravo Luck have no further need for consent or consultation rights. The Trustee has the direct or indirect authority over the Individual Debtor, Genever (BVI), and Genever (US). Motion ¶ 22. Accordingly, the concerns that led to the granting of consent and consultation rights in the first instance, namely, concerns about Mr. Kwok's undue control over the sale of the Sherry Netherland Apartment, are no longer present. And, having finally resolved any issues arising from Mr. Kwok's undue control, further consent and consultation rights will only serve as a new impediment to a prompt and commercially reasonable sale by the Trustee, being advised by a capable real estate broker who is familiar with current market conditions. Further, the Settlement Agreement has expired by its terms and was never intended to last in perpetuity. *See* Motion at Ex. B, § 4(e). The sale process of the Sherry Netherland Apartment should therefore proceed without the consent and consultation rights that are preventing an efficient and commercially reasonable sale of the Sherry Netherland Apartment.\n\nWHEREFORE, for the foregoing reasons and for the reasons set forth in the Motion, The Sherry Netherland respectfully requests that the Court enter an Order, substantially in the form of the Proposed Order filed with the Motion, granting the Motion, and order such other and further relief as the Court deems just and proper.\n\n5\n\nDated: Stamford, CT /s/ Taruna Garg\n\nJanuary 20, 2023 Taruna Garg (ct28652) MURTHA CULLINA LLP 107 Elm Street Stamford, CT 06902 Telephone: Facsimile: Email: (203) 653-5400 (203) 653-5444 targ@murthalaw.com\n\n-and-\n\nSherry J. Millman\\* Patrick N. Petrocelli\\* STROOCK & STROOCK & LAVAN LLP 180 Maiden Lane New York, NY 10038 Telephone: Facsimile: Email: (212) 806-5400 (212) 806-6006 smillman@stroock.com ppetrocelli@stroock.com\n\n*Counsel for The Sherry Netherland, Inc.*\n\n\\*Admitted *pro hac vice*\n\n## **UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION**\n\nIn re:\n\nHO WAN KWOK, *et al.*,\n\nDebtors.\n\nChapter 11\n\nCase No. 22-50073 (JAM)\n\n(Jointly Administered)\n\nJanuary 20, 2023\n\n## **CERTIFICATE OF SERVICE**\n\nI, Taruna Garg, hereby certify that on the 20th day of January, 2023, The Sherry\n\nNetherland's *Reply in Support of the Motion of Chapter 11 Trustee, Genever Holdings LLC,*\n\n*Pursuant to Bankruptcy Code Section 327, 328, and 363, for Entry of Order Further Extending*\n\n*(I) Sale Process of Sherry Netherland Apartment and (II) Retention of Sotheby's International*\n\n*Realty as Broker* was filed via the Court's CM/ECF electronic filing system (\"CM/ECF\"), which\n\nsent notice to all parties receiving notification through CM/ECF.\n\n/s/ Taruna Garg Taruna Garg","body_zh":"UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION（美国康涅狄格区联邦破产法院布里奇波特分部）\n\n关于：\n\nHO WAN KWOK（郭文贵）等， 1\n\n债务人。\n\n第 11 章\n\n案号：22-50073 (JAM)\n\n（合并审理）\n\n2023年1月20日\nTHE SHERRY-NETHERLAND, INC. 支持第 11 章受托人、GENEVER HOLDINGS CORPORATION 及 GENEVER HOLDINGS LLC 根据《破产法典》第 327 条、第 328 条和第 363 条提起的请求作出进一步延长 (I) 雪莉荷兰公寓出售程序及 (II) 继续聘用苏富比国际地产公司（SOTHEBY'S INTERNATIONAL REALTY）担任经纪人的裁定的动议之回复意见\n\nThe Sherry-Netherland, Inc.（雪莉荷兰公司，以下简称「The Sherry Netherland」）谨此提交本回复意见，以支持该动议。2 为支持该动议，The Sherry Netherland 谨陈述如下：\n\n1. The Sherry Netherland 是一家住宅合作公寓合作社法人，雪莉荷兰公寓（Sherry Netherland Apartment）即位于其中。雪莉荷兰公寓登记在 Genever (US) 名下，并体现为分配给 1801、MR 2219、MR 719 号公寓的 3,050 股合作公寓股份，这些股份系根据 The Sherry\n\n1 本第 11 章案件中的债务人为 Ho Wan Kwok（郭文贵，又名 Guo Wengui、Miles Guo、Miles Kwok 以及其他诸多化名）（纳税人识别号后四位：9595）、Genever Holdings LLC（纳税人识别号后四位：8202）以及 Genever Holdings Corporation。受托人、Genever Holdings LLC 以及 Genever Holdings Corporation 的邮寄地址为 Paul Hastings LLP（普衡律师事务所）, 200 Park Avenue, New York, NY 10166 转交 Ho Wan Kwok 破产财产受托人 Luc A. Despins（仅用于接收通知和联络）。\n\n2 本回复意见中使用但未在此定义的首字母大写术语，具有《第 11 章受托人、Genever Holdings LLC 根据〈破产法典〉第 327 条、第 328 条和第 363 条提起的请求作出进一步延长 (I) 雪莉荷兰公寓出售程序及 (II) 继续聘用苏富比国际地产公司担任经纪人的裁定的动议》[案号：22-50073，案卷号：1257] 中赋予它们的涵义。\n\nNetherland（作为出租人）与债务人（作为承租人）于 2015年3月6日 订立的附属专有租赁合同（统称「专有租赁合同」）向 Genever (US) 发行。Genever (US) 与 The Sherry Netherland 也是（除其他协议外）由 Sherry（作为出租人）、债务人（作为承租人）以及 Kwok Ho Wan 先生（又名 Miles Kwok、Miles Guo，作为居住人）于 2015年3月6日 订立的某份《关于股份及专有租赁合同的协议与同意书》（以下简称「《协议与同意书》」）的当事方。\n\n2. 雪莉荷兰公寓是 Genever (US) 唯一的重大资产，也是唯一有可能向 Genever (US) 的无财产担保债权人（如有）提供清偿的资产。[案号：22-50592，案卷号：4 第 3-6 页]。\n\n3. The Sherry Netherland 是 Genever (US) 唯一无可争议且有财产担保的债权人。[案号：22-50592，案卷号：4 第 6 页]；针对 Genever (US) 的第 1-1 号债权证明。具体而言，The Sherry Netherland 拥有（除其他实际或潜在债权外）：(a) 破产申请前债权，涉及根据专有租赁合同以及出租人的公司文件（定义见《协议与同意书》）应付给 The Sherry Netherland 的未结欠款，包括未付的每月租金、额外租金、维护费、分摊费、律师费、利息和滞纳金；以及 (b) 破产申请后债权，涉及持续或未来的维护费、分摊费、律师费、利息和滞纳金。仅 The Sherry Netherland 的破产申请前债权总额就至少超过 900,000 美元。3\n\n4. 此外，截至破产申请日，The Sherry Netherland 持有金额约为 300 万美元的安全保证金（以下简称「安全保证金」）。[案号：22-50592，案卷号：165 第 12 页]。根据《准予 The Sherry-Netherland, Inc. 解除\n\n3 此处列出的债权并非详尽无遗。The Sherry Netherland 保留对其迄今已主张或将来可能主张的任何债权的所有权利。\n\n自动中止的同意裁定》[案号：22-50592，案卷号：107]，The Sherry Netherland 获授权「每月从[安全保证金]中冲抵专有租赁合同项下所有已产生且欠付的破产申请后维护费和分摊费……」。\n\n5. The Sherry Netherland 的所有债权以及所有额外到期未付金额（包括将来应付给 The Sherry Netherland 的未付金额），均以雪莉荷兰公寓和安全保证金作为担保，并已由个人债务人提供担保。安全保证金是一项有限的资金来源，如果雪莉荷兰公寓不能在合理时间内售出，安全保证金将被专有租赁合同项下已产生且欠付的破产申请后维护费和分摊费消耗殆尽。由于 The Sherry Netherland 的运营和资本支出均由该公司的股东支付的维护费和分摊费提供资金，因此安全保证金耗尽的后果将是迫使 The Sherry Netherland 的其他股东承担这些费用，直至雪莉荷兰公寓售出为止。\n\n6. PAX 和 Bravo Luck 均基于衡平法抗辩理由声称自己是 Genever (US) 的无财产担保债权人。PAX 声称自己是个人债务人的无财产担保债权人，但仍以 Genever (US) 是个人债务人的替身（alter ego）为由对 Genever (US) 提出了债权主张。参见针对 Genever (US) 的第 5-1 号债权证明。而 Bravo Luck 则声称其对雪莉荷兰公寓享有实益权益（beneficial interest），并基于该权益声称自己是 Genever (US) 的无财产担保债权人。参见针对 Genever (US) 的第 4-1 号债权证明。受托人和 Genever (US) 正各自单独对 Bravo Luck 所谓享有的实益权益提出异议。参见兼审诉讼案号：22-05027；兼审诉讼案号：22-05030。4\n\n4 目前，The Sherry Netherland 对 PAX 和 Bravo Luck 各自的衡平法抗辩理由的是非曲直，或对它们是否实际上是 Genever (US) 的无财产担保债权人，不持任何立场。\n\n7. 在《和解协议》进行谈判并达成时，The Sherry Netherland 即已参与了 Genever (US) 的破产案件。当时，雪莉荷兰公寓的衡平法所有权或实益所有权正卷入诉讼之中，且 PAX 当时正试图通过《解除中止动议》和《程序转换动议》就其对郭先生对 Genever (US) 拥有不当控制权的担忧提起诉讼。[案号：22-50592，案卷号：45]。PAX 与 Bravo Luck 之间持续进行的诉讼干扰了 Genever (US) 破产案件的有效管理，并阻碍了 Genever (US) 实现出售雪莉荷兰公寓（其唯一的重大资产）的能力。[出处同上]。《和解协议》通过解决了 PAX 对郭先生对雪莉荷兰公寓出售拥有不当控制权的担忧，表面上消除了该干扰，因此本应为雪莉荷兰公寓高效且符合商业合理性的出售扫清道路。\n\n8. 自《和解协议》签署至今已有一年多时间，而 Genever (US) 似乎并未显著接近完成雪莉荷兰公寓的出售。The Sherry Netherland 认为，Bravo Luck 和 PAX 在《和解协议》中拥有的同意权和咨询权正在阻碍出售进程。The Sherry Netherland 认为，Bravo Luck 和 PAX 并没有让出售官（Sales Officer）和苏富比公司行使其合理的商业自由裁量权以在当前市场条件下以适当价格推销并最终售出雪莉荷兰公寓，而是在以牺牲 Genever (US) 破产财产为代价、损害 The Sherry Netherland 及其其他股东利益的情况下追求其各自的个人目的。The Sherry Netherland 支持动议中请求的救济，包括请求裁定自 2022年10月31日 之后 PAX 和 Bravo Luck 不再对推销和销售程序享有任何进一步的同意权或咨询权。The Sherry Netherland 支持该项救济，是因为 The Sherry Netherland 支持在当前市场条件下以适当价格高效且符合商业合理性地出售雪莉荷兰公寓，并且目前认为该动议为 Genever (US) 破产财产及其利害关系人实现该价值最大化结果提供了最佳途径。The Sherry Netherland 不认为抱着雪莉荷兰公寓的价值会随时间推移而增加的投机性希望而拖延出售，或出于任何其他原因拖延出售，符合 Genever (US) 及其利害关系人的利益。\n\n9. 很大程度上基于动议中陈述的理由，The Sherry Netherland 赞同 PAX 和 Bravo Luck 不再需要同意权或咨询权。受托人对个人债务人、Genever (BVI) 和 Genever (US) 拥有直接或间接的管辖权。动议第 22 段。因此，最初导致授予同意权和咨询权的担忧（即对郭先生对雪莉荷兰公寓的出售拥有不当控制权的担忧）已不复存在。并且，在最终解决了因郭先生的不当控制权而产生的任何问题之后，进一步的同意权和咨询权只会成为受托人在熟悉当前市场条件的称职房地产经纪人建议下进行迅速且符合商业合理性的出售的新障碍。此外，《和解协议》根据其条款已经到期，且本意绝非永久持续。参见动议附件 B 第 4(e) 条。因此，雪莉荷兰公寓的出售程序应当在不存在阻碍高效且符合商业合理性出售雪莉荷兰公寓的同意权和咨询权的情况下继续进行。\n\n据此，基于前述理由以及动议中阐述的理由，The Sherry Netherland 谨请法院作出裁定，其形式实质上与随动议提交的《拟定裁定》一致，准予该动议，并裁定法院认为公正恰当的其他及进一步救济。\n\n日期：康涅狄格州斯坦福\n2023年1月20日\n\n/签名/ Taruna Garg\nTaruna Garg (ct28652)\nMURTHA CULLINA LLP（默萨库利纳有限责任合伙）\n107 Elm Street\nStamford, CT 06902\n电话：(203) 653-5400\n传真：(203) 653-5444\n电子邮件：targ@murthalaw.com\n\n—以及—\n\nSherry J. Millman\\*\nPatrick N. Petrocelli\\*\nSTROOCK & STROOCK & LAVAN LLP\n180 Maiden Lane\nNew York, NY 10038\n电话：(212) 806-5400\n传真：(212) 806-6006\n电子邮件：smillman@stroock.com\nppetrocelli@stroock.com\n\nThe Sherry-Netherland, Inc. 之代理律师\n\n\\*特许出庭（Pro hac vice）\n\nUNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION（美国康涅狄格区联邦破产法院布里奇波特分部）\n\n关于：\n\nHO WAN KWOK（郭文贵）等，\n\n债务人。\n\n第 11 章\n\n案号：22-50073 (JAM)\n\n（合并审理）\n\n2023年1月20日\n送达证明\n\n本人 Taruna Garg 谨此证明，于 2023年1月20日，The Sherry Netherland 支持第 11 章受托人、Genever Holdings LLC 根据《破产法典》第 327 条、第 328 条和第 363 条提起的请求作出进一步延长 (I) 雪莉荷兰公寓出售程序及 (II) 继续聘用苏富比国际地产公司担任经纪人的裁定的动议之回复意见 已通过法院的 CM/ECF 电子归档系统（「CM/ECF」）进行归档提交，该系统已向通过 CM/ECF 接收通知的所有当事方发送了通知。\n\n/签名/ Taruna Garg\nTaruna Garg","key_entities":["Kwok","Ho Wan Kwok","Guo","Miles Guo","Despins","Paul Hastings"],"ecf_references":[],"word_count":1811,"status":"published","published_at":null,"created_at":null,"updated_at":"2026-08-23 13:00:31"}