郭文贵破产案 · ORDER · ECF #1749

## **UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION**

| -----------------------------------------------------------<br>x | | | | | |------------------------------------------------------------------|--------|-------------------------|--|--| | In re: | :<br>: | Chapter 11 | | | | | : | | | | | HO WAN KWOK et al., | :<br>: | Case No. 22-50073 (JAM) | | | | Debtors.1 | : | Jointly Administered | | | | | : | | | | | ----------------------------------------------------------- | x | | | |

## **APPLICATION OF GENEVER HOLDINGS LLC, PURSUANT TO BANKRUPTCY CODE SECTIONS 327(a) AND 328, BANKRUPTCY RULES 2014(a) AND 2016, AND LOCAL RULE 2014-1, FOR ENTRY OF ORDER AUTHORIZING EMPLOYMENT AND RETENTION OF AFFILIATED ADJUSTMENT GROUP, LTD. AS PUBLIC ADJUSTER**

Genever Holdings LLC ("Genever (US)") hereby moves the Court (the "Application") pursuant to sections 327(a) and 328 of title 11 of the United States Code (the "Bankruptcy Code"), Rule 2014(a) and 2016 of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules") and Rule 2014-1 of the Local Bankruptcy Rules for the District of Connecticut (the "Local Rules") for entry of an order (the "Order"), substantially in the form of **Exhibit A** hereto, authorizing Genever (US) to employ and retain Affiliated Adjustment Group, Ltd. ("AAGL") as public insurance claims adjusters in accordance with the terms and conditions set forth in that certain Public Adjuster Compensation Agreement, dated as of April 14, 2023 (the "Agreement"), attached hereto as **Exhibit B**. In support of the relief sought in the Application, Genever (US) submits the declaration of John J. Panico (the "Panico Declaration"), attached hereto as

¹ 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 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).

**Exhibit C** and incorporated herein by reference. In further support of this Application, Genever (US) respectfully states as follows:

#### **PRELIMINARY STATEMENT**

1. Genever (US) requires a public adjuster to assist in the adjustment, negotiation, and/or settlement of Genever (US)'s claim (the "Claim") for the loss or damage sustained at the 18th floor apartment at the Sherry Netherland Hotel, 781 Fifth Avenue, New York, New York (the "Apartment") as a result of the fire that broker out at the Apartment on March 15, 2023 (the "Fire"). While Genever (US) understands that the insurer of the Apartment (*i.e.*, AIG) has not yet made a final determination as to whether to grant or deny coverage for damage caused by the Fire and any third-party liability claims against Genever (US) related to the Fire, the insurer has, to date, refused to make any payments to allow for even the clean-up of the Apartment because the cause of the Fire remains under investigation. At the same time, Genever (US) has been informed by the insurer that they intend to cancel the existing insurance policy. Accordingly, Genever (US) anticipates that the insurer may ultimately determine to refuse coverage.

2. In light of these developments, Genever (US) selected AAGL as the public adjuster, not only because of its substantial experience in claim adjustments, but also because of its competitive fee structure, which (as further detailed below) is essentially a contingency fee tied to a successful recovery from the insurer of the Apartment.

3. The services to be provided by AAGL will include: (a) preparation, presentation, adjustment, and negotiation, or effecting a settlement, of the claim for the loss or damage by a covered peril or perils sustained at the Apartment; and (b) preparation and delivery or periodic reports to Genever (US) with respect to (i) the cost of immediate remediation/abatement, (ii) the cost of repairs using different assumptions as to the state of repair, and (iii) the length of repairs or renovations. Importantly, AAGL will also provide expert testimony before a court of

competent jurisdiction as to the aforementioned matters, *i.e.*, the cost of immediate remediation/abatement, the cost of repairs using different assumptions, and the length of repairs or renovations.

4. As set forth more fully in the Agreement, AAGL will be compensated as follows: (a) for up to the first \$3 million of any settlement proceeds from any claim, a fixed fee of 5% of such proceeds, (b) for any settlement proceeds greater than \$3 million but less than \$15 million, a fixed fee of 4% of the settlement proceeds, and (c) for any settlement proceeds greater than \$15 million but less than \$50 million, a fixed fee of 3% of such proceeds. This compensation arrangement is common for public adjusters.

5. Genever (US) submits that approving the retention of AAGL as public adjuster for the Claim is in the best interest of Genever (US)'s estate and that, accordingly, AAGL's retention, on the terms set forth in the Agreement, should be approved by the Court.

## **JURISDICTION, VENUE, AND STATUTORY BASES**

6. The United States Bankruptcy Court for the District of Connecticut (the "Court") has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334 and the *Standing Order of Reference* from the United States District Court for the District of Connecticut.

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

8. Venue of this proceeding and this Application is proper in this district pursuant to 28 U.S. C. §§ 1408 and 1409.

9. The relief sought in this Application is predicated upon sections 327 and 328 of the Bankruptcy Code, Bankruptcy Rule 2014, and Local Rule 2014-1.

#### **RELEVANT BACKGROUND**

10. On October 12, 2020, Genever (US) filed a voluntary petition for relief under chapter 11 of title 11 of the United States Bankruptcy Code before the United States Bankruptcy

Court for the Southern District of New York (the "SDNY Bankruptcy Court"), thereby commencing case number 20-12411 (JLG). *See Chapter 11 Petition* [Docket No. 1 in Case No. 22-50592 (JAM)].

11. No trustee or examiner has been appointed in Genever (US)'s case.

12. Genever (US)'s principal asset is the Apartment and a related security deposit.

13. On November 3, 2022, the SDNY Bankruptcy Court entered an order transferring the venue of Genever (US)'s chapter 11 case to this Court. *See Memorandum Decision and Order Granting the Joint Motion of (A) Genever Holdings LLC and (B) Luc A. Despins as Chapter 11 Trustee for Estate of Ho Wan Kwok to Transfer, Pursuant to 28 U.S.C. §§ 1408, and 1412 and Bankruptcy Rule 1014(a), Venue of Chapter 11 Case of Genever Holdings LLC to Bankruptcy Court for District of Connecticut* [Docket No. 225 in Case No. 22-50592 (JAM)].

14. The chapter 11 cases of Ho Wan Kwok (the "Individual Debtor"), Genever (US), and Genever Holdings Corporation ("Genever (BVI)") are being jointly administered before this Court for procedural purposes only. *See* Docket No. 1141 in Case No. 22-50073 (JAM).

15. On March 15, 2023, the Fire broke out at the Apartment. Upon information and belief, the Apartment is currently uninhabitable.

16. Genever (US) requires services of a claims adjuster to assist Genever (US) in the preparation, presentation, adjustment, and negotiation, or effecting a settlement, of the Claim, as well as other related services, including providing expert testimony regarding (i) the cost of immediate remediation/abatement, (ii) the cost or repairs using different assumptions as to the state of repair, and (iii) the length of repairs or renovations (as further detailed below, the "Adjustment Services").

## **QUALIFICATIONS**

17. Genever (US) seeks to retain AAGL because of its extensive experience and knowledge with respect to adjustment of property claims and insurance claims for residential homes. AAGL is a partnership of companies specializing in public adjusting of property claims and has an international reputation for responsive, skillful, and professional assistance to policyholders in residential claim settlements. In addition, AAGL has settled thousands of claims in its 100-year history.

18. For these reasons, Genever (US) submits that AAGL is well qualified and able to efficiently provide the Adjustment Service with respect to the Claim.

## **SERVICES TO BE PROVIDED**

19. Subject to approval of this Court,² Genever (US) has retained AAGL as public adjuster to assist with the preparation, presentation, adjustment, and negotiation, or effecting a settlement, of the Claim pursuant to the Agreement. The services provided by AAGL will include the following:

- a. Preparation, presentation, adjustment, and negotiation, or effecting the settlement, of the claim for the loss or damage by a covered peril or perils sustained at the Apartment. - b. Preparation and delivery or periodic reports to Genever (US) with respect to (i) the cost of immediate remediation/abatement, (ii) the cost or repairs using different assumptions as to the state of repair, and (iii) the length of repairs or renovations. - c. Providing expert testimony before a court of competent jurisdiction (which may be this Court) as to the aforementioned matters. - 20. Genever (US) intends to work closely with AAGL to ensure that there is no

unnecessary duplication of services performed or charged to Genever (US)'s estate in this case.

² Part II of Schedule A to the Agreement provides that the Agreement is subject to the approval of this Court.

#### **COMPENSATION**

21. As set forth more fully in the Agreement and subject thereto, AAGL will be compensated as follows (the "Compensation Structure"): (a) for up to the first \$3 million of any settlement proceeds from the claim, a fixed fee of 5% of such proceeds, (b) for any settlement proceeds greater than \$3 million but less than \$15 million, a fixed fee of 4% of the settlement proceeds, and (c) for any settlement proceeds greater than \$15 million but less than \$50 million, a fixed fee of 3% of such proceeds.

#### **RELIEF REQUESTED**

22. By this Application, Genever (US) seeks entry of an Order, substantially in the form attached hereto as Exhibit A, pursuant to sections 327(a) and 328 of the Bankruptcy Code, Bankruptcy Rule 2014 and Local Rule 2014-1, authorizing them to employ and retain AAGL as public adjuster in connection the Claim, as set forth in the Agreement.

23. Genever (US) respectfully requests that, because AAGL's compensation is results-oriented and directly related to benefits received by Genever (US)'s estate as a result of the Claim, requiring AAGL to filed detailed time records and periodic fee applications in accordance with sections 330 and 331 of the Bankruptcy Code, and in compliance with Bankruptcy Rule 2016 and Local Rule 2016 is unnecessary under the circumstances. Genever (US) has been advised by AAGL that it is not their practice to keep detailed time records similar to those customarily kept by attorneys and other professionals who are compensated on an hourly basis. That said, AAGL will file a final fee application with respect to any fees to be paid pursuant to the Agreement.

#### **BASIS FOR RELIEF**

24. Genever (US) seeks to retain AAGL as public adjuster to assist with the preparation, presentation, adjustment, and negotiation, or effecting the settlement, of the Claim

pursuant to section 327(a) of the Bankruptcy Code, which provides that a debtor-in-possession may, subject to court approval:

> employ one or more attorneys, accountants, appraisers, auctioneers, or other professional persons, that do not hold or represent an interest adverse to the estate, and that are disinterested persons, to represent or assist the [debtor-in-possession] in carrying out the [debtor-in-possession]'s duties under this title.

11 U.S.C. § 327(a).

25. Further, section 328(a) of the Bankruptcy Code allows a debtor-in-possession, "with the court's approval, . . . [to] employ or authorize the employment of a professional person under section 327 . . . on any reasonable terms and conditions of employment, including on a retainer, on an hourly basis, on a fixed or percentage fee basis, or on a contingent fee basis." 11 U.S.C. § 328(a).

26. Under Bankruptcy Rule 2014(a), an application for retention must include:

[S]pecific facts showing the necessity for the employment, the name of the [firm] to be employed, the reasons for the selection, the professional services to be rendered, any proposed arrangement for compensation, and, to the best of the applicant's knowledge, all of the [firm's] connections with the debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States trustee, or any person employed in the office of the United States trustee.

Fed. R. Bankr. P. 2014(a).

27. Based on the facts and for the reasons stated herein and in the Panico Declaration, retention and employment of AAGL as broker for Genever (US) as public adjuster pursuant to this Application is reasonable, necessary and appropriate, and satisfies the requirements of sections 327 and 328 of the Bankruptcy Code and Bankruptcy Rule 2014(a). Genever (US) submits that the relief sought in this Application will facilitate Genever (US)'s restructuring

efforts through the maximizing of the value of the Claim, is in the best interests of Genever (US)'s estate and stakeholders, and should be approved by the Court.

## **DISINTERESTEDNESS**

28. To the best of Genever (US)'s knowledge, AAGL (i) does not hold any interest materially adverse to Genever (US)'s estate; (ii) has no connection with Genever (US), its creditors, equity security holders, any other party in interest, or related parties herein; and (iii) is a "disinterested person" as such term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code and as required by section 327(a) of the Bankruptcy Code, except as set forth in the Panico Declaration.

## **NOTICE**

29. Notice of this Application has been given to the United States Trustee, the Individual Debtor, and, by electronic filing utilizing the Court's electronic filing ("CM/ECF") system, to all appearing parties who utilize the CM/ECF system.

## **NO PRIOR REQUEST**

30. No prior request for the relief sought in the Application has been made to this Court or any other court.

[*Remainder of page intentionally left blank.*]

WHEREFORE, for the reasons set forth herein, Genever (US) respectfully requests that

the Court (a) enter the Order substantially in the form attached hereto as **Exhibit A** and (b) grant

such other and further relief as is just and proper.

Dated: May 3, 2023 GENEVER HOLDINGS LLC New Haven, Connecticut

By: */s/ Patrick R. Linsey*

Douglas S. Skalka (ct00616) Patrick R. Linsey (ct29437) NEUBERT, PEPE & MONTEITH, P.C. 195 Church Street, 13th Floor New Haven, Connecticut 06510 (203) 781-2847 dskalka@npmlaw.com plinsey@npmlaw.com

*and*

Avram E. Luft (admitted *pro hac vice*) G. Alexander Bongartz (admitted *pro hac vice*) PAUL HASTINGS LLP 200 Park Avenue New York, New York 10166 (212) 318-6079 aviluft@paulhastings.com alexbongartz@paulhastings.com

*and*

Nicholas A. Bassett (admitted *pro hac vice*) PAUL HASTINGS LLP 2050 M Street NW Washington, D.C., 20036 (202) 551-1902 nicholasbassett@paulhastings.com

*Counsel for Genever Holdings LLC*

# **Exhibit A**

**Proposed Order**

## **UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION**

| ------------------------------------------------------ | x | | |--------------------------------------------------------|--------|-------------------------| | In re: | :<br>: | Chapter 11 | | HO WAN KWOK et al., | :<br>: | Case No. 22-50073 (JAM) | | Debtors.1 | :<br>: | Jointly Administered | | ------------------------------------------------------ | :<br>x | |

## **ORDER, PURSUANT TO BANKRUPTCY CODE SECTIONS 327(a) AND 328, BANKRUPTCY RULES 2014(a) AND 2016, AND LOCAL RULE 2014-1, FOR ENTRY OF ORDER AUTHORIZING EMPLOYMENT AND RETENTION OF AFFILIATED ADJUSTMENT GROUP, LTD. AS PUBLIC ADJUSTER**

Upon the application (the "Application"),2 filed by Genever Holdings LLC ("Genever (US)"), pursuant to sections 327(a) and 328(a) of title 11 of the Bankruptcy Code, Bankruptcy Rules 2014 and 2016, and Local Rule 2014-1, for entry of an order (the "Order") authorizing Genever (US) to employ and retain Affiliated Adjustment Group, Ltd. ("AAGL") as public adjuster in accordance with the terms and conditions set forth in the Agreement, all as further detailed in the Application; and it appearing that this Court has jurisdiction to consider the Application pursuant to 28 U.S.C. §§ 157 and 1334 and the Standing Order of Reference from the United States District Court for the District of Connecticut; and it appearing that venue of this chapter 11 case and the Application in this district is proper pursuant to 28 U.S.C. §§ 1408

¹ 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 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).

² Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Application.

and 1409; and it appearing that this matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); and this Court being satisfied based on the representations made in the Application and in the Panico Declaration that, as more fully disclosed in the Panico Declaration, (a) AAGL does not hold or represent an interest adverse to Genever (US)'s estate and (b) AAGL is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code as modified by section 1107(b) of the Bankruptcy Code, and as required by section 327(a) of the Bankruptcy Code; and it appearing that proper and adequate notice of the Application has been given and that no other or further notice is necessary; and after due deliberation thereon; and this Court having reviewed the Application and having heard statements in support of the Application at a hearing held before this Court; and good and sufficient cause appearing therefor,

## IT IS HEREBY ORDERED THAT:

1. The Application is approved as set forth herein. All objections to the relief requested in the Application, whether filed or not, are hereby overruled.

2. Genever (US) is authorized to retain and employ AAGL as public adjuster in connection with the Claim, on the terms set forth in the Agreement.

3. The Compensation Structure is hereby approved, and AAGL shall not be required to file monthly or interim fee applications pursuant to sections 330 and 331 of the Bankruptcy Code. AAGL shall file a final fee application with respect to any fees to be paid pursuant to the Agreement.

4. To the extent the Application or the Agreement is inconsistent with this Order, the terms of this Order shall govern.

5. Genever (US) and AAGL are authorized and empowered to take all actions necessary to effectuate the relief granted in this Order.

6. The terms and conditions of this Order shall be immediately effective and enforceable upon its entry.

7. This Court retains exclusive jurisdiction with respect to all matters arising from or related to the implementation, interpretation, and enforcement of this Order.

# **Exhibit B**

**Public Adjuster Compensation Agreement**

# PUBLIC ADJUSTER COMPENSATION AGREEMENT AFFILIATED ADJUSTMENT GROUP, LTD. - NYS PA LICENSE #840928 3000 Marcus Avenue, Suite 3W3 Lake Success, NY 11042 516-352-1400

Sublicensees: Steven Gutenplan Bruce Azus

John J. Panico David Azus

Date and Time of Initial Contact: 4/14/23 1pm

Genever Holdings LLC (the "Insured"), c/o Luc A. Despins, Chapter 11 Trustee of Ho Wan Kwok, with an office at 200 Park Avenue New York, NY 10166, hereby retains Affiliated Adjustment Group, Ltd. (the "Adjuster") to act or aid in the preparation, presentation, adjustment, and negotiation, or effecting the settlement, of the claim for the loss or damage by a covered peril or perils sustained at the 18th floor apartment at the Sherry Netherland Hotel, 781 Fifth Avenue, New York, New York, on 3/15/2023, and agrees to pay the Adjuster for such services a fee of SEE ATTACHED SCHEDULE A of the amount of the loss, including salvage, when and if adjusted or otherwise recovered from the insurance companies.

Zero disclosure statements are attached hereto.

This Agreement and the section entitled "Notice to Insured" is expressly subject to the terms set forth in SCHEDULE A hereto.

# NOTICE TO INSURED

- 1. The Adjuster may not receive any compensation unless the Adjuster discloses the compensation to you. - 2. The Adjuster may not charge you any fees that total more than 12.5% of the recovery for services rendered by the Adjuster, except that the Adjuster may charge a fee of up to 20% on a supplemental claim if the aggregate fee charged is less than or equal to 12.5% of the full claim payment. A supplemental claim is a claim made to an insurer in a situation in which you did not retain a public adjuster when you made the initial claim, the insurer made a payment to you, and then you retained a public adjuster to prove the amount of the loss and extent of the loss and not the cause of the loss. - A The limit on the total fees that may be charged includes services rendered by an outside expert or consultant retained or employed by the Adjuster that directly relate to the adjusting function of the Adjuster. - B. The limit on total fees also includes any referral of an individual or entity for services, work, or repairs relating to any insurance claim for which the Adjuster represents or represented you or has negotiated or effected settlement. - C If the Adjuster refers you to an individual or entity, including after you sign this compensation agreement, then the Adjuster must obtain an acknowledged disclosure statement from you at the time of the referral. - D. YOU ARE NOT REQUIRED TO USE ANY INDIVIDUAL OR ENTITY TO WHOM OR WHICH THE ADJUSTER REFERS YOU. - 3. The Adjuster must compute the fee based upon any monies paid by the insurer for any insurance claim for which the public adjuster represented you or has negotiated or effected a settlement, after you have retained the Adjuster's services. - 4. The fee to be charged under this compensation agreement may be negotiated between the parties for less than 12.5%, or with regard to the supplemental claim, for less than 20%. You should discuss the amount of the fee with the Adjuster before signing any compensation agreement. You must initial the amount upon which you have agreed. - 5. This compensation agreement is valid only if both this agreement and the attached notice of cancellation are written in the same language as that principally used in the oral negotiations and presentation. - 6. You may cancel this compensation agreement at any time prior to midnight of the third business day after the date which you signed this compensation agreement. Please read the attached "Notice of Cancellation" form for an explanation of this right.

Signature of Public Adjuster or Licensed Representative Thereof

Signature of Insur te and Time

Date and Time of Signing

Signature of Insured

Date and Time

# NOTICE OF CANCELLATION

You may cancel the written compensation agreement, without any penalty or obligation, until midnight of the third business day after the date on which you signed the compensation agreement.

If you cancel, then any payments made by you under the compensation agreement, and any negotiable instrument executed by you, will be returned within ten business days following receipt by the public adjuster of your cancellation notice, and any security interest arising out of the transaction will be cancelled.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, to AFFILIATED ADJUSTMENT GROUP, LTD., 3000 MARCUS AVENUE, SUITE 3W3, LAKE SUCCESS, NY 11042 no later than midnight of\_

I hereby cancel this transaction.

Signature(s) of Named Insured(s)

Date

## SCHEDULE A TO PUBLIC ADJUSTMENT RETAINER AGREEMENT BETWEEN AFFILIATED ADJUSTMENT GROUP, LTD., AND GENEVER HOLDINGS LLC C/O LUC A. DESPINS, CHAPTER 11 TRUSTEE OF HO WAN KWOK DATED APRIL . . , 2023

## Part I - Fee Schedule

Fee 5% 4% 3%

## Fee Structure

| Settlement Proceeds | | |-----------------------------|--| | Up to first \$3,000,000 | | | \$3,000,000 - \$15,000,000 | | | \$15,000,000 - \$50,000,000 | | | | |

\*\* No fee to be applied to deductible amounts

## Part II - Bankruptcy-Related Provisions

The attached Public Adjustment Retainer Agreement is subject to the approval of the United States Bankruptcy Court for the District of Connecticut (the "Bankruptcy Court"), in which court the chapter 11 case of Genever Holdings LI.C, Case No. 22-50592, is pending.

The Bankruptcy Court shall have exclusive jurisdiction over any claim or dispute in respect of or arising out of the attached Public Adjustment Retainer Agreement.

Neither Mr. Luc A. Despins nor Paul Hastings LLP shall have any liability under the attached Public Adjustment Retainer Agreement.

## Part III - Other Provisions

The tasks of the Adjuster under the attached Public Adjustment Retainer Agreement shall include, at no additional cost, fee or expense, the preparation and delivery of periodic reports to Genever Holding LLC with respect to (i) the cost of immediate remediation/abatement, (ii) the cost of repairs using different assumptions as to the state of repair, and (iii) length of repairs or renovations, as well as providing expert testimony before a court of competent jurisdiction, which may be the Bankruptey Court, as to these matters.

Affiliated Adjustment Group, Ltd.

By: Time & Date Insured: Genever Holdings I.I.C, c/o Luc A. Despins, Chapter 1 1 Trustee for the Estate of Ho Wan Kwok

By: Inn Time & Date

# **Exhibit C**

**Panico Declaration**

## UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION

| In re: | Chapter 11 | |---------------------|--------------------------| | HO WAN KWOK et al., | Case No. 22-50073 (JAM) | | Debtors. | Jointly Administered<br> | | | |

## DECLARATION OF JOHN J. PANICO IN SUPPORT OF APPLICATION OF GENEVER HOLDINGS LLC, PURSUANT TO BANKRUPTCY CODE SECTIONS 327(a) AND 328, BANKRUPTCY RULES 2014(a) AND 2016, AND LOCAL RULE 2014-1, FOR ENTRY OF ORDER AUTHORIZING EMPLOYMENT AND RETENTION OF AFFILIATED ADJUSTMENT GROUP, LTD. AS PUBLIC ADJUSTER

I, John J. Panico being duly sworn, state the following under penalty of perjury:

I . I am a public adjuster of Affiliated Adjustment Group, Ltd. ("AAGL"), which

maintains offices at 3000 Marcus Avenue, Suite 3W3, Lake Success, NY 11042.

2. I am duly authorized to make this declaration (this "Declaration") on behalf of

AAGL and submit this Declaration in support of the Application of Genever Holdings LLC,

Pursuant to Bankruptcy Code Sections 327(a) and 328, Bankruptcy Rules 2014(a) and 2016, and

Local Rule 2014-1, for Entry of Order Authorizing Employment and Retention of Affiliated

Adjustment Group, Ltd. as Public Adjuster (the "Application")2 in the chapter 11 case (the

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 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).

² Capitalized terms used but otherwise not defined herein shall have the meanings ascribed to them in the Application.

"Chapter 11 Case") of Genever Holdings LLC ("Genever (US)"), seeking an order approving the retention of AAGL as adjuster pursuant to sections 327(a) and 328(a) of the Bankruptcy Code.

3. I am a public adjuster based in Lake Success, New York, since 1996. I am currently (and have been for the last 27 years) employed by AAGL as a public adjuster. I have approximately 37 years of experience in the insurance claims adjustment industry.

4. AAGL was retained by Genever (US) to assist Genever (US) in the preparation, presentation, adjustment, and negotiation, or effecting a settlement of the claim for the loss or damage sustained at the Apartment as a result of the Fire. Unless otherwise indicated below, I have personal knowledge of the matters set forth below, and if called as a witness, I could and would testify competently thereto.

5. As part of my role as an adjuster in connection with the Claim, I will, among other things (i) prepare, present, adjust, and negotiate, or effectuate a settlement, of the claim for the loss or damage by a covered peril or perils sustained at the Apartment, (ii) prepare and delivery or periodic reports to Genever (US) with respect to (a) the cost of immediate remediation/abatement, (b) the cost or repairs using different assumptions as to the state of repair, and (c) the length of repairs or renovations, and (iii) provide expert testimony before a court of competent jurisdiction as to the aforementioned matters, if necessary.

6. AAGL is a corporation specializing in public adjusting of property claims and has an international reputation for responsive, skillful, and professional assistance to policyholders in residential claim settlements. In addition, AAGL has settled over 11,500 insurance claims in its 27-year history.

7. The services that AAGL provides to Genever (US) have assisted and will assist its efforts to maximize the value of Genever (US)'s estate by enabling the estate to derive value

from the Claim. To my knowledge, the services will not duplicate the services of any other professional that Genever (US) has retained. In addition, if retained, AAGL will use reasonable efforts to coordinate its services with Genever (US) and Genever (US)'s other professionals to avoid the unnecessary duplication of services.

8. Compensation will be payable to AAGL on the terms set forth in the Agreement.

9. In connection with Genever (US)'s proposed retention of AAGL in the Chapter

11 Case, AAGL has received a list of parties in interest provided by Paul Hastings LLP, attached

hereto as Schedule 1, which includes:

- a. parties listed as creditors, executory contract counterparties, and codebtors on the Individual Debtor's Schedules D, F, G, and H [Docket No. 78]; - b. parties listed on the Individual Debtor's Statement of Financial Affairs ("SOFA") [Docket No. 77], including (i) as recipients of payments within 90 days prior to the filing of the Chapter 11 Case (SOFA Part 3, Question 6); (ii) parties involved in litigation in which the Individual Debtor is a party (SOFA Part 4, Question 9); and businesses owned by the Individual Debtor (SOFA Part 11, Question 27); - c. parties and counsel filing notice of appearances in the Individual Debtor's Chapter 11 Case; - d. the Court and personnel of the office of the United States Trustee (the "US Trustee"); and - e. other parties in interest that Genever (US) has become aware of as a result of ongoing investigations of the Individual Debtor's assets.

10. AAGL maintains records of its current and former clients and, with respect to any

engagement, adverse persons. Before signing this Declaration, I have checked against such

records all of the names listed on Schedule 1 (collectively, the "Interested Parties").

11. To the best of my knowledge and belief, AAGL has no relationship or connection

with the Interested Parties or with any other creditor of Genever (US), except as follows:

- AAGL has served as a public adjuster for an insured party in connection a. with claims unrelated to the Apartment or Genever (US) in which AIG Property Casualty Company was the insurer; and - b. A partner at AAGL is serving as public adjuster for an apartment on the 19th floor of the Sherry Netherlands.

12. While I have made a diligent effort to ascertain the identity of any connections or potential conflicts with the Interested Parties, to the extent that any additional information comes to light, I will review, disclose, and resolve any conflict or adverse interests that may appear.

13. Based on the foregoing, insofar as I have been able to ascertain based on the information currently available to me: (a) AAGL has no connection with Genever (US), its creditors, the U.S. Trustee, any person employed in the office of the U.S. Trustee, or any other party with an actual or potential interest in the Chapter 11 Case or their respective attorneys or accountants; and (b) (i) AAGL is not a creditor, equity security holder, or insider of Genever (US) or its affiliates, (ii) AAGL has not been, within two years before the petition date of the Chapter 11 Case, a director, officer, or employee of Genever (US) or its affiliates, and (iii) AAGL has no interest materially adverse to the interests of Genever (US)'s estate or any class of creditors or equity security holders by reason of any direct relationship to, connection with, or interest in Genever (US), or for any other reason. Therefore, I understand from my discussions with Paul Hastings LLP that this means AAGL is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code, as modified by section 1107(b).

14. No promises have been received by AAGL nor by any employee thereof as to compensation in connection with this chapter 11 case other than in accordance with the

provisions of the Bankruptcy Code. AAGL has no agreement with any other entity to share with such entity any compensation received by AAGL in connection with this Chapter 11 Case.

Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true and correct.

Dated: May 3, 2023

John J. Panico Public Adjuster Affiliated Adjustment Group, Ltd.

#### SCHEDULE OF PARTIES IN INTEREST - IN RE KWOK

20 LARGEST UNSECURED CREDITORS

PACIFIC ALLIANCE ASIA OPPORTUNITY GOLDEN SPRING NEW YORK RUI MA CHENG JIAN WU JIAN SHE NING YE GUO BAOSHENG YAN LAN & WU ZHENG HONG QI QU NAN TONG SI JIAN JIAN GONG YAN ZHAO YUA HUA ZHUANG SHI LIEHONG ZHUANG/XIAO YAN ZHU WEICAN MENG/BOXUN INC. SAMUEL NUNBERG LAMP CAPITAL LLC JUN CHEN AKA JONATHAN HO YUE HUA ZHU SHI XIONG XIAN WEI YE HUIZEN WANG

#### DEBTOR, FAMILY MEMBERS, AND CERTAIN RELATED ENTITIES

HO WAN KWOK (A.K.A MILES GWOK, MILES GUO AND WENGUI GUO) HING CH NGOK/YUE QINGZHI QIANG GUO MEI GUO/MEI GUI HK INTERNATIONAL FUNDS INVESTMENTS (USA) LIMITED, LLC BRAVO LUCK LIMITED GENEVER HOLDINGS CORPORATION GENEVER HOLDINGS LLC

#### BANKRUPTCY JUDGE AND U.S. TRUSTBE

PERSONNEL HONORABLE JULIE A. MANNING WILLIAM HARRINGTON KIM L. MCCABE HOLLEY CLAIBORN JOSEPH H. FLAMINI ERIN HOGAN STEVEN MACKEY FRANK MARINO JENNIFER J. MOREY NICOLE NEEL Y SHARON WARNER JOHN GERVAIS

#### OTHER INTERESTED PARTIES

7 NOD HILL LLC, 7 STAR EAST NY LLC AAGV LIMITED

ABRAMS FENSTERMAN, LLP ACA CAPITAL GROUP LIMITED ACA INVESTMENT FUND ACA INVESTMENT MANAGEMENT LTD. ACASS CANADA LTD. ACE DECADE HOLDINGS LIMITED AI GROUP HOLDINGS INC., AIG PROPERTY CASUALTY COMPANY AKERMAN LLP ALEX HADJICHARALAMBOUS ALFA GLOBAL VENTURES LIMITED ALFONSO GLOBAL LIMITED ALLIED CAPITAL GLOBAL LIMITED ALPINE FIDUCIARIES SA AMAZON WEB SERVICES LILC AMAZON.COM INC. AN HONG ANDREW SULNER/FORENSIC DOCUMENT EXAMINATIONS, LLC ANTHONY DIBATTISTA ANTON DEVELOPMENT LIMITED APPLE INC. APSLEY YACHTS LIMITED ARETHUSA FORSYTH ARI CASPER ASSETS SINO LIMITED AUSPICIOUS COAST LIMITED BAIQIAO TANG A/K/A TANG BAIQIAO BAKER HOSTETLER LLP BANK OF AMERICA BANK OF CHINA - NEW YORK BRANCH AND/OR BANK OF CHINA LIMITED BARCLAYS BANK PLC BEIJING BI HAI GE LIN YUAN LIN LU HUA, LTD. BEIJING CHENG JIAN WU JIAN SHE GROUP, LTD. BEIJING FU LE HONG MA JIAN ZHU ZHUANG SHI GONG CHENG, LTD. BEIJING PANGU INVESTMENT CO. BEIJING ZENITH HOLDINGS CO. BEIJING ZHONG XIAN WEI YE STAINLESS DECORATION CENTER BERKELEY ROWE BERNARDO ENRIQUEZ BINGSHANG JIAO BLUE CAPITAL BNY MELLON, N.A. BOIES SCHILLER BOOMING SAIL NEW YORK LLC BOXUN INC. BRANCH BRENT PETRO INC. BROWN HARRIS STEVENS

## **UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION**

| ----------------------------------------------------------- | x | | |-------------------------------------------------------------|-------------|-------------------------| | In re: | :<br>: | Chapter 11 | | HO WAN KWOK et al., | :<br>:<br>: | Case No. 22-50073 (JAM) | | Debtors.3 | :<br>: | Jointly Administered | | ----------------------------------------------------------- | x | |

## **CERTIFICATE OF SERVICE**

The undersigned hereby certifies that on May 3, 2023, the foregoing Application, and all declarations, exhibits and attachments thereto, was electronically filed. Notice of this filing was sent by e-mail to all parties to the above-captioned chapter 11 case by operation of the Court's electronic filing ("CM/ECF") system or by mail to anyone unable to accept electronic filing as indicated on the Notice of Electronic Filing. Parties may access this filing through the Court's CM/ECF system.

Dated: May 3, 2023 GENEVER HOLDINGS LLC New Haven, Connecticut

By: */s/ Patrick R. Linsey* Douglas S. Skalka (ct00616) Patrick R. Linsey (ct29437) NEUBERT, PEPE & MONTEITH, P.C. 195 Church Street, 13th Floor New Haven, Connecticut 06510 (203) 781-2847 dskalka@npmlaw.com plinsey@npmlaw.com

*Counsel for the Genever Holdings LLC*

³ 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 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).