郭文贵破产案 · TRANSCRIPT · ECF #3486

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION IN RE: . Chapter 11 . Case No. 22-50073 (JAM) HO WAN KWOK, et al., . . (Jointly Administered) Debtors. . . . . . . . . . . . . . . . . . . LUC A. DESPINS, CHAPTER 11 . Adversary Proceeding TRUSTEE, . No. 24-05249 (JAM) . Plaintiff, . . v. . . Courtroom 123 ACA CAPITAL GROUP, LTD., . Brien McMahon Federal Building et al., . 915 Lafayette Boulevard . Bridgeport, Connecticut 06604 Defendants. . . Tuesday, August 27, 2024 . . . . . . . . . . . . . . . 1:03 p.m. TRANSCRIPT OF HEARING BEFORE THE HONORABLE JULIE A. MANNING UNITED STATES BANKRUPTCY JUDGE (APPEARANCES CONTINUED) Audio Operator: Electronically recorded Transcription Company: Reliable The Nemours Building 1007 N. Orange Street, Suite 110 Wilmington, Delaware 19801 Telephone: (302)654-8080 Email: gmatthews@reliable-co.com Proceedings recorded by electronic sound recording, transcript produced by transcription service. Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 1 of 24

2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 APPEARANCES: For the Chapter 11 Trustee: Patrick Linsey, Esquire NEUBERT PEPE & MONTEITH, P.C. 195 Church Street 13th Floor New Haven, Connecticut 06510 -and- Luc A. Despins, Esquire Shlomo Maza, Esquire PAUL HASTINGS, LLP 200 Park Avenue New York, New York 10166 Nicholas A. Bassett, Esquire 2050 M Street, NW Washington, DC 20036 For the U.S. Trustee: Holley L. Claiborn, Esquire OFFICE OF THE UNITED STATES TRUSTEE The Giaimo Federal Building 150 Court Street, Room 302 New Haven, Connecticut 06510 For Pacific Alliance Asia Opportunity Fund: Annecca H. Smith, Esquire ROBINSON & COLE, LLP 280 Trumbull Street Hartford, Connecticut 06103 -and- Stuart M. Sarnoff, Esquire O'MELVENY & MYERS, LLP Times Square Tower 7 Times Square New York, New York 10036 For the Official Committee of Unsecured Creditors: Kristin B. Mayhew, Esquire PULLMAN & COMLEY, LLC 850 Main Street 8th Floor Bridgeport, Connecticut 06601 Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 2 of 24

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| 1 | APPEARANCES (CONTINUED): | | |----|-------------------------------------------------|------------------------------------------------------| | 2 | For G Club Operations, | | | 3 | Weddle Law PLLC, FFP BVI<br>Limited, Ogier, and | | | 4 | Pillsbury Winthrop Shaw<br>Pittman, LLP: | Kellianne Baranowsky, Esquire<br>GREEN & SKLARZ, LLC | | 5 | | One Audubon Street<br>3rd Floor | | 6 | | New Haven, Connecticut 06511 | | 7 | For Urban Legend: | Eilis Meagher, Esquire<br>FINN DIXON & HERLING, LLP | | 8 | | 6 Landmark Square<br>Stamford, Connecticut 06901 | | 9 | | | | 10 | | | | 11 | | | | 12 | | | | 13 | | | | 14 | | | | 15 | | | | 16 | | | | 17 | | | | 18 | | | | 19 | | | | 20 | | | | 21 | | | | 22 | | | | 23 | | | | 24 | | | | 25 | | | | | | | | | | | | | | |

4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 INDEX MOTIONS: PAGE In re: Ho Wan Kwok, et al. Main Case no. 22-050073 (JAM) Matter No. 3396 Motion to Amend Order Directing Parties to Mediation, Appointing The Honorable James J. Tancredi as Mediator, and Amending Order Approving Procedures Applicable to Avoidance Claim Adversary Proceedings to Facilitate Consensual Pre-Litigation Mediation Filed by Patrick R. Linsey on behalf of Luc A. Despins, Chapter 11 Trustee 7 Court's Ruling: 14 Luc A. Despins, Chapter 11 Trustee v ACA Capital Group, Ltd., et al. Adversary Case No. 24-05249 (JAM) Matter No. 3: Motion for Default Judgment by the Court pursuant to Fed. R. Civ. P. 55 (b)(2) and Fed. R. Bankr. P. 7055 against K Legacy Ltd. and Qiang Guo . Filed by Patrick R. Linsey on behalf of Despins, Luc A., Chapter 11 Trustee, Plaintiff 16 Court's Ruling: 20 Transcriptionist's Certificate 24 Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 4 of 24

5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (Proceedings commenced at 1:03 p.m.) THE CLERK: Case Number 22-50073, Ho Wan Kwok, and Adversary 24-05249, Despins v ACA Capital Group, et al. THE COURT: Good afternoon. If we could have appearances for the record, please. We'll start with is Attorney Claiborn, who's in the courtroom. Can anybody see Attorney Claiborn? MS. CLAIBORN: I'm a small person. (Laughter) MS. CLAIBORN: Holley Claiborn for the U.S. Trustee. THE COURT: Good afternoon. All right. Then we can start with the remote participants with the can Chapter 11 Trustee, please. MR. DESPINS: Good afternoon, Your Honor. Luc Despins, Chapter 11 Trustee. THE COURT: Good afternoon. MR. BASSETT: Good afternoon, Your Honor. Nick Bassett from Paul Hastings, on behalf of the Chapter 11 Trustee. THE COURT: Good afternoon. MR. LINSEY: Good afternoon, Your Honor, Patrick Linsey of Neubert Pepe & Monteith, Connecticut counsel for the trustee. Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 5 of 24

6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE COURT: Good afternoon. MR. SARNOFF: Good afternoon, Your Honor. Stuart Sarnoff, O'Melveny & Myers, for creditor PAX. THE COURT: Good afternoon. MS. SMITH: Good afternoon, Your Honor. Annecca Smith, Robinson & Cole, Connecticut counsel for the creditor PAX. THE COURT: Good afternoon. MS. MAYHEW: Good afternoon, Your Honor. Kristin Mayhew, Pullman & Comley, on behalf of the Creditors Committee. THE COURT: Good afternoon. MS. MEAGHER: Good afternoon, Eilis Meagher of Finn Dixon & Herling, on behalf of Urban Legend. THE COURT: Good afternoon. Attorney Meagher, do you have an appearance in the main case or just in an adversary? I'm just curious. I don't have all the names of people in front of me at the moment. MS. MEAGHER: Just in an adversary. THE COURT: Okay. Thank you. MS. BARANOWSKY: Good afternoon, Your Honor. Kellianne Baranowsky. I represent several parties in the main case. In the adversary proceeding, I'm appearing strictly in an observational capacity. THE COURT: Okay. Good afternoon. Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 6 of 24

| 1 | All right.<br>Trustee Despins, there are two matters | |----|-----------------------------------------------------------------| | 2 | on the calendar.<br>The matter in the main case is the motion | | 3 | to amend the order approving procedures with regard to the | | 4 | mediation of matters.<br>And then there's the matter in the | | 5 | adversary proceeding, so how do you wish to proceed. | | 6 | MR. DESPINS:<br>The matter in the main case, Your | | 7 | Honor, then Mr. Linsey will address that. | | 8 | Basically, I think that maybe he'll state this, | | 9 | but Judge Tancredi has the modification, but nevertheless, | | 10 | Your Honor needs to consider it and approve it if you think | | 11 | it's appropriate, but Mr. Linsey, go ahead. | | 12 | MR. LINSEY:<br>Yes, Your Honor. | | 13 | This motion amends the existing mediation | | 14 | procedures to create a procedure for voluntary mediation of | | 15 | claims prior to litigation.<br>The trustee is presently | | 16 | negotiating with quite a few parties that have not yet been | | 17 | sued.<br>As the Court is aware, numerous potential Defendants | | 18 | have executed tolling stipulations.<br>There are some potential | | 19 | Defendants that are amenable to mediating on a fully | | 20 | voluntary basis.<br>As the trustee said, the trustee has | | 21 | consulted with Judge Tancredi and understands that Judge | | 22 | Tancredi is amenable to doing that in appropriate | | 23 | circumstances. | | 24 | The effect of this order would be to create a | | 25 | supplemental program that would apply only to consensual pre | | | |

1 2 3 4 5 6 7 litigation mediation; it would not change the procedures for parties who are presently in the mediation program under the existing order. It would apply to potential Defendants that the trustee has not yet sued or to Defendants who have been sued, but not yet appeared, such that litigation has not yet occurred; again, only to the extent that the counterparties wish to take advantage of it.

8 9 10 11 12 13 14 15 16 17 18 19 20 Any party participating in the program would be required to agree in writing to be bound by the consensual mediation procedures, among other things. This includes the provisions in the existing order regarding confidentiality of mediation proceedings and confirming Judge Tancredi's judicial immunity for service as mediator. The consensual mediation program would also be voluntary on a case-by-case basis, as applied to Judge Tancredi. It would be within his discretion to accept or reject any proposed consensual prelitigation mediation. This was done intentionally to permit Judge Tancredi to determine whether he believes matters are appropriate for motion and to avoid overburdening Judge Tancredi.

21 22 23 24 25 Under the consensual procedures, any mediating party or Judge Tancredi can terminate the consensual prelitigation mediation at any time for any reason. So what we have is a voluntary avenue for parties that are interested in participating, as long as they are interested in

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 participating, which ensures that the program will be productive. No objections have been filed with respect to the motion. That speaks, in part, presumably to the fact that these procedures are voluntary and they're flexible. The trustee is optimistic that a consensual, prelitigation mediation program will result in settlements that will avoid potential litigation that would otherwise require the estate, counterparties, and the Court to invest resources in dealing with that litigation. And with that, I'm happy to answer any questions that the Court may have. THE COURT: I do not have any questions, thank you. Attorney Claiborn? MS. CLAIBORN: Thank you, Your Honor. I just wanted to make one comment. There is a paragraph that speaks to the possibility that motions to settle with parties who are participating in this process would be filed under seal and I just wanted to stand to rise to say to the parties and the Court that the U.S. Trustee has no objection to this process, but reserves all rights to object to any pleading that may be filed under seal for not meeting the standards that are required. THE COURT: Okay. Thank you.

10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 There is nothing in the proposed order that I recall about filing under seal, but you're talking about a paragraph in the motion? MS. CLAIBORN: There's a paragraph in the order. It's paragraph 2, little four, no, sorry, little five, the bottom of page 2. THE COURT: Oh, I see. Okay. I didn't see that. Let me look at that, then. (Pause) THE COURT: Well, it says it may be filed under seal. MS. CLAIBORN: Correct. THE COURT: It doesn't say it will be filed under seal. MS. CLAIBORN: Right. I just didn't want there to be any discussion later about not having objected to this process. We don't object to the actual process, but we don't -- by not doing so, admit that -- THE COURT: You're not waiving any rights to claim that it shouldn't be filed under seal. MS. CLAIBORN: Correct, Your Honor. Thank you. THE COURT: That's fine, thank you. MR. LINSEY: And I would just note, Your Honor, there is a similar provision in the existing mediation procedures for the claims mediation now. Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 10 of 24

11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE COURT: But those that have pending causes of action; there's a difference, right? MR. LINSEY: Correct, Your Honor. THE COURT: The matters that are under -- that are subject to -- MR. LINSEY: Correct. THE COURT: -- mediation, and which matters there may be pleadings filed under seal relate to actually pending adversary proceedings. This procedure relates to matters that will have not been commenced by the trustee, correct? MR. LINSEY: In large part. It would also apply where a Defendant has been sued, but not yet appeared, that's because we've been contacted by (indiscernible) counsel that wish to try to negotiate a resolution without having to appear on the litigation perspective and defense. And the trustee is amenable to doing that, provided that they consent in writing to respect the mediation procedures. THE COURT: So you're saying only in the prior order that it won't be referred to mediation unless someone files an appearance on behalf of a Defendant? MR. LINSEY: That's correct, Your Honor. THE COURT: Okay. MR. LINSEY: Under the prior order -- THE COURT: Does anyone else wish to be heard? Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 11 of 24

12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. LINSEY: -- with the (indiscernible). I apologize for -- THE COURT: No, go ahead, Attorney Linsey. MR. LINSEY: No, it's fine. I have nothing else to add, Your Honor. THE COURT: Does anyone else wish to be heard on the trustee's motion to amend the order directing parties to mediation and amending and approving procedures applicable to avoidance claim adversary proceedings to facility consensual pre-litigation mediation -- see, when you say, "prelitigation mediation," it's not only pre-litigation mediation, though; you've just clarified that, that there are matters are pending. It's just that that could apply to this -- that this process could apply to, but that Defendant hasn't filed a notice of appearance on -- no one has filed a notice of appearance on behalf of a Defendant. MR. LINSEY: That's a good point, Your Honor, and I struggled with the semantics of that, so if I didn't phrase it articulately, I apologize. I just meant that no -- we just meant that nobody has shown up and begun defending. THE COURT: Does anyone else wish to be heard? (No verbal response) THE COURT: So I guess what I need to do is, I'm looking at the proposed order and it says by modifying -- on the first page of the order: Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 12 of 24

| 1 | "By modifying and supplementing the mediation | |----|-----------------------------------------------------------------| | 2 | procedures to provide for the consensual mediation," and then | | 3 | you defined it as "consensual pre-litigation mediation" of | | 4 | claims, estate claims, okay.<br>But I guess the only issue is, | | 5 | it's not necessarily pre-litigation; that's the only | | 6 | difference.<br>There are some cases that are pending.<br>When I | | 7 | say, "cases," I should say, "adversary proceedings," correct? | | 8 | MR. LINSEY:<br>That's correct. | | 9 | We can submit -- we can tweak that language and | | 10 | submit a revised order if the Court would like. | | 11 | THE COURT:<br>I think you might need do that.<br>I | | 12 | don't want to hear someone say, well, wait a minute, I didn't | | 13 | understand that.<br>I'd just rather it be a little more | | 14 | pointed, which is that it applies to any pending adversary | | 15 | proceeding in which a Defendant -- a notice of appearance has | | 16 | not been filed on behalf of a Defendant or any claims that | | 17 | have not been commenced as an adversary proceeding.<br>However | | 18 | you want to amend it.<br>But I think you would need to do that | | 19 | in order for it to be clear. | | 20 | MR. LINSEY:<br>We'll make that clarification, Your | | 21 | Honor. | | 22 | THE COURT:<br>All right.<br>Hearing nothing from | | 23 | anyone else, is that correct, no one else wishes to be heard | | 24 | on the motion? | | 25 | (No verbal response) |

| 1 | THE COURT:<br>All right.<br>I've reviewed the motion. | |----|----------------------------------------------------------------| | 2 | I understand that Judge Tancredi has consulted through the | | 3 | mediation process with the trustee about the relief sought in | | 4 | this motion to amend so that Judge Tancredi would agree to be | | 5 | a mediator and facilitate a possible -- the mediation and | | 6 | possible resolution of number one, either pending adversary | | 7 | proceedings in which a Defendant has not filed a -- no one | | 8 | has filed a notice of appearance on behalf of a Defendant, or | | 9 | estate claims that have not been brought through an adversary | | 10 | proceeding. | | 11 | No one has filed any written objections to the | | 12 | motion.<br>There is no one participating in this hearing today | | 13 | that's objecting to the motion.<br>This motion and this order | | 14 | apply to all of the mediation issues and will be filed, as | | 15 | the motion was filed in the main case. | | 16 | You're not going to file them in any adversary | | 17 | proceedings, nor should you; it's a main case request for | | 18 | relief.<br>So the order will enter in the main case. | | 19 | You're going to submit a revised proposed order, | | 20 | Attorney Linsey? | | 21 | MR. LINSEY:<br>Yes, by tomorrow, if that's | | 22 | acceptable to the Court? | | 23 | THE COURT:<br>That's fine.<br>You can have until the | | 24 | end of the week if you'd like.<br>Whatever you would prefer. | | 25 | MR. LINSEY:<br>We'll get it in by tomorrow. | | | |

15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE COURT: Okay. Just give me one moment, please. (Pause) THE COURT: So, with regard to the motion to amend mediation procedures, to facilitate consensual mediations, either for pending actions, in which a notice of appearance has not been filed on behalf of a Defendant, or action of estate actions of estate claims which have not been brought, upon review of the motion, for the reasons stated on the record and because no one has filed any objection to the motion, the motion is granted and the trustee's counsel will submit a revised proposed order on or before August 28th. Thank you. MR. LINSEY: Thank you, Your Honor. THE COURT: Trustee Despins, how about we now turn to the motion for default judgment in the adversary proceeding, correct? MR. DESPINS: That's correct, Your Honor, and Mr. Bassett will handle that matter. Thank you. THE COURT: Okay. Thank you. Okay. Attorney Bassett, you may proceed -- MR. BASSETT: Yes. THE COURT: -- in connection with the motion for default judgment in Adversary 24-05249. MR. BASSETT: Thank you, Your Honor. Case 22-50073 Doc 3486 Filed 08/29/24 Entered 08/29/24 10:21:31 Page 15 of 24

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 So the motion today is to hold two of the Defendants in that adversary proceeding, K Legacy Ltd. and Qiang Guo, the debtor's son, to have the Court enter default judgment against those two Defendants. By way of brief background, Your Honor, K Legacy is another shell company of the debtor and it's similar in many ways to HK USA, which, as the Court knows, the debtor used to hold title to his yacht and HK USA was, itself, nominally, opened by the debtor's daughter. In this case, K Legacy is a BVI-based shell company that is nominally owned by the debtor's son and the K Legacy, in turn, holds title to a luxury apartment belonging to the debtor, located in London that was purchased in 2016 for approximately 33 million pounds. The complaint seeks a judgment like many complaints before it, both, declaring that K Legacy and its assets are, and always have been, property of the Chapter 11 estate, that includes the London apartment, and then, also an order that such property be surrendered to the trustee. As Your Honor is aware from past default judgments that we have filed in this case, in order to obtain a default judgment, the trustee has to both, demonstrate that the Defendants were served validly with a summons and complaint, but they, thereafter, failed to timely answer, and then the trustee also has to show that the complaint, on its face,

1 2 3 4 with the allegations deemed admitted, plausibly alleges facts sufficient to support a determination that the trustee entitled to the relief seeks, namely, an order that the estate owns K Legacy and its assets.

5 6 7 8 9 10 11 Your Honor, all of these elements are satisfied in this case. First, as we set forth in our papers, the trustee served both Defendants. Qiang Guo, the debtor's son is located in the United Kingdom. He was validly served with a summons and a complaint via mail on March 21st, 2024. The summons, with which he was served gave him 60 days to answer, until May 26th. He filed to answer.

12 13 14 15 16 17 18 19 20 21 22 On June 10th, the Court entered a default against Qiang Guo. This service is compliant, Your Honor, with both, the Federal Rules and the Hague Convention. The applicable Federal Rule would be -- sorry -- Rule 4(f)(1), which permits service, according to Hague Convention, and then pursuant to Article 10(a) of the Hague Convention, a Plaintiff may serve documents, via mail, to the extent that the signatory country to the Convention does not object. Here, the United Kingdom has not objected to service by mail under 10(a), therefore, service by mail is appropriate. And we cite cases which have held accordingly in our papers.

23 24 25 K Legacy, as I mentioned, is an entity based in the BVI. It was validly served with the summons and compliant through its registered agent in the BVI on

1 2 3 February 29th, 2024. It, too, had 60 days to answer until April 29th and it failed to do so. And on May 17th, the Court entered a default against K Legacy.

4 5 6 7 8 9 10 11 12 13 14 Service in the manner I just described, colony replied with the applicable rules and the Hague Convention; again, the rule referenced would be Rule 4(f)(1) and then Article 10(c) of the Hague Convention, which allows service through judicial officers and officials of the state of destination, and, in particular, the United Kingdom, which controls the BVIs. Signing on to the Convention has stated that one can serve a BVI company through a solicitor and/or an agent, therefore, the service that was conducted on K Legacy's registered nation in the BVI, complies with the applicable rules and the Hague Convention.

15 16 17 18 19 20 21 22 23 24 25 Service having been complete and the Defendants having failed to answer, the only question remaining is whether the complaint states a valid claim for the relief that it seeks. Here, the allegations in the complaint establish, in our view, overwhelmingly that the debtor is the true beneficial owner of K Legacy and its assets. We go through this in our papers, but to quickly summarize, K Legacy Ltd., to the trustee's knowledge, and as alleged in the complaint, has no business purpose, other than to serve as a shell company, holding title to the London apartment. We allege that the debtor funded the purchase of the London

| 1 | apartment.<br>We also allege in detail that the debtor | |----|-----------------------------------------------------------------| | 2 | exercised control and dominion over the London apartment.<br>It | | 3 | was the debtor's home in London.<br>The debtor occupied the | | 4 | master bedroom of that apartment.<br>The debtor publicly | | 5 | referred to the apartment as his home.<br>He, in a television | | 6 | interview, boasted that he owned the most luxurious apartment | | 7 | in London.<br>The debtor kept all the relevant documents | | 8 | related to the London apartment, including the purchase | | 9 | contract in his possession.<br>He decided when and how to pay | | 10 | for the bills to the apartment.<br>He came and went from the | | 11 | London apartment whenever he wished, without anyone's | | 12 | permission, and the security staff at the apartment took | | 13 | direction from the debtor, not from his son or anybody else. | | 14 | When the debtor was asked about the London apartment in his | | 15 | deposition, he invoked the Fifth Amendment. | | 16 | So, Your Honor, based on the fact that both of the | | 17 | Defendants were validly served, that they failed to answer | | 18 | and that the complaint sufficiently contains allegations to | | 19 | support the relief requested, we would respectfully request | | 20 | that the Court enter the default judgment that we've | | 21 | requested in the form of the proposed order attached to the | | 22 | motion. | | 23 | I'm happy to answer any questions. | | 24 | THE COURT:<br>Thank you.<br>I do not have any | | 25 | questions. | | | |

1 2 3 Does anyone else wish to be heard in connection with the motion for default judgment in this adversary proceeding?

(No verbal response)

4

5 6 THE COURT: Okay. I hear no response from anyone, with regard to the motion for default judgment.

7 8 9 10 11 12 13 14 15 16 17 18 19 I am going to take it under advisement, but I think I will rule in short order. I would like to look back at some of the allegations in the complaint and the proposed order, which I did look at, but I want to make sure that I've got everything in my head in front of me properly and that I understand the default judgment is to liability only, with regard to certain counts in the complaint, and then also, that the ownership interests in K Legacy and that were held by the debtor's son and the assets of K Legacy, including that apartment -- but I don't know if there are other assets -- were property of the debtor and the debtor's Chapter 11 estate, and that I just need to look at all of those again.

20 21 22 So I will take the matter under advisement, but I do believe that there will be an order entered within the next, you know, 7 to 10 days, at the longest.

23 24 25 MR. BASSETT: Thank you, Your Honor. THE COURT: Does anyone have any questions? MR. DESPINS: No, Your Honor. I don't have a

| 1 | question. | | | | | | |----|-----------------------------------------------------------------|--|--|--|--|--| | 2 | I would just want to thank the Court for that | | | | | | | 3 | because we know that the owner of the building in which the | | | | | | | 4 | apartment was located has commenced litigation against K | | | | | | | 5 | Legacy for failure to pay maintenance, et cetera, for many | | | | | | | 6 | months.<br>They've obtained a default judgment, so there's a -- | | | | | | | 7 | I wouldn't say there's a race to the courthouse, but we | | | | | | | 8 | appreciate the fact that Your Honor is going to look at this | | | | | | | 9 | on the schedule that we proposed.<br>We really appreciate that. | | | | | | | 10 | THE COURT:<br>Yeah, I mean, it could be before the | | | | | | | 11 | end of the week, but I just don't want to promise anything | | | | | | | 12 | that I might not be able to, a deadline that I might not be | | | | | | | 13 | able to meet, okay? | | | | | | | 14 | MR. BASSETT:<br>Thank you. | | | | | | | 15 | MR. DESPINS:<br>Thank you, Your Honor. | | | | | | | 16 | THE COURT:<br>All right.<br>Is there anything else | | | | | | | 17 | that we should address this afternoon?<br>I know we have a | | | | | | | 18 | hearing next week, as well, on, I believe retention of a real | | | | | | | 19 | estate broker.<br>I think that's the only thing that's coming | | | | | | | 20 | up next week. | | | | | | | 21 | MR. DESPINS:<br>Retention of a broker and also, plus | | | | | | | 22 | any payments that we've made and will continue to make, with | | | | | | | 23 | respect to the maintenance of the Taconic property. | | | | | | | 24 | THE COURT:<br>Is that on the calendar or -- | | | | | | | 25 | MR. DESPINS:<br>It's part -- it's in the same | | | | | | | | | | | | | |

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22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 motion. THE COURT: It's part of the motion? MR. DESPINS: Yes, it is. THE COURT: Oh, okay. Okay. Right. Right. Sorry. Sometimes -- MR. DESPINS: And, Your Honor, I want to say this, because I've been very critical of the Kwok family over time and I hope I will not regret this later, but we took possession of the house and I can imagine this being the equivalent of a foreclosure, and I was expecting the worse, and quite to the contrary, to date, it appears the house was left in immaculate condition, again, time will tell, so I wanted to make sure the Court was aware of this, because I have been very critical of them in the past, but I will say on this aspect, so far, it looks like they were very professional about the transfer of possessions. Thank you, Your Honor. THE COURT: Well, thank you for letting the Court know that. I appreciate that. And I will say that if there are not objections filed to your motion that is scheduled for a hearing next week, we will probably conduct it remotely, as well, in an attempt to keep costs down in this case. MR. DESPINS: Thank you. THE COURT: I don't know if there will be an objection. I understand Attorney Major, representing those

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 entities, has been cooperative in connection with the pleadings and the representations made in the court -- made in court by Attorney Major, so I'm happy to hear that. And if we -- you know, we're obviously closed next Monday, as hopefully all of you might have a day off, as well, for the holiday, but we will most likely, Friday afternoon, or Friday, indicate that if there are no objections filed, that the hearing will be remote, okay? MR. DESPINS: Thank you, Your Honor. THE COURT: Is there any other business that we should address this afternoon? MR. DESPINS: Not at this time, Your Honor, thank you. THE COURT: Okay. Well, thank you, all. As I said, the motion with regard to the mediation procedures is granted. The motion for default judgment in the adversary proceeding, I'm taking under advisement, but will rule in short order. So that is the last matter on today's calendar, so court is adjourned. Thank you, all. COUNSEL: Thank you, Your Honor. THE CLERK: All rise. Court is adjourned. (Proceedings concluded at 1:31 p.m.)

| Case 22-50073 | | Doc 3486 | Filed 08/29/24 | Entered 08/29/24 10:21:31 | Page 24 of 24 | | |---------------|------------------------------------------------------------|------------------------|----------------------------------|---------------------------|-----------------|--| | | | | | | 24 | | | 1 | CERTIFICATION | | | | | | | 2 | I certify that the foregoing is a correct | | | | | | | 3 | transcript from the electronic sound recording of the | | | | | | | 4 | proceedings in the above-entitled matter to the best of my | | | | | | | 5 | knowledge and ability. | | | | | | | 6 | | | | | | | | 7 | | /s/ William J. Garling | | | August 29, 2024 | | | 8 | | | William J. Garling, CET-543 | | | | | 9 | | | Certified Court Transcriptionist | | | | | 10 | | For Reliable | | | | | | 11 | | | | | | | | 12 | | | | | | | | 13 | | | | | | | | 14 | | | | | | | | 15 | | | | | | | | 16 | | | | | | | | 17 | | | | | | | | 18 | | | | | | | | 19 | | | | | | | | 20 | | | | | | | | 21<br>22 | | | | | | | | 23 | | | | | | | | 24 | | | | | | | | 25 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |