Guo Wengui / Miles Guo — bankruptcy case · EXHIBIT · ECF #2032-35

FILED: NEW YORK COUNTY CLERK 04/28/2021 10:54 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 767 RECEIVED NYSCEF: 04/28/2021 Case 22-50073 Doc 2032-35 Filed 07/25/23 Entered 07/25/23 13:27:53 Page 2 of 13

GENEVER HOLDINGS, LLC, 201 Varick Street

Debtor.

2:30 p.m.

BEFORE RICHARD C. MORRISSEY, ESQ.

TELEPHONIC APPEARANCES: For the Debtor: Goldberg Weprin Finkel Goldstein LLP By: KEVIN J. NASH, ESQ.

By: AARON A. MITCHELL, ESQ.

By: ALISSA M. NANN, ESQ.

By: EDWARD MOSS, ESQ.

Proceedings recorded by electronic sound recording, transcript produced by transcription service.

J&J COURT TRANSCRIBERS, INC.

NYSCEF DOC. NO. 767 FILED: NEW YORK COUNTY CLERK 04/28/2021 10:54 PM

TELEPHONIC APPEARANCES (Cont'd):

Netherland Hotel: Stroock & Stroock & Lavan LLP By: GABRIELLE SASSON, ESQ. CURTIS C. MECHLING, ESQ.

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NYSCEF DOC. NO. 767 RECEIVED NYSCEF: 04/28/2021

1 or as opposed to the individuals who live there who pay, or is 2 it just that Bravo happens to be the one doing the paying?

Bravo Luck and Mr. Qiang Guo in the very beginning 4 purchased these apartments.

5 their assets and liability.

6 paying all of those maintenance. Not by individual.

7 Luck, this company.

Okay. And do you know what the monthly maintenance is?

From this year, it raised a little bit, it's about I think 10 roughly 73,000 per month as a maintenance fee, and plus with 11 assessments every month also.

Okay. What do you mean assessments?

Assessments as far as Sherry explained that is a 14 assessment every month occurred about like less than 10,000, 15 like this year is 8,000, every month, instead of before, I 16 believe that was quarterly, to improve the entire condition and 17 pay anything which Sherry want to improve, the entire building, 18 maintenance or condition of facility.

Okay. So, in other words, in addition to the 73,000 a 20 month, the Sherry will impose assessments for whatever 21 improvements they're making?

Yes, sir.

Okay. And is the debtor or Bravo if it's doing the 24 paying, is the debtor current with respect to those maintenance 25 payments?

From this year because of the litigation, the debtor was expecting, but Bravo Luck did not pay from the beginning of this year because of the litigation and ownership.

Okay. So from the beginning of 2020, so from January, is that what you're saying?

Correct, from January of 2020. MR. NASH: Richard, just for informational purposes. The Stroock firm represents the Sherry-Netherland.

the Sherry-Netherland for approximately a million dollars on arrears.

Sherry-Netherland is holding a \$3.5 million security deposit. There was a litigation that's listed there where the security deposit, an issue whether it's too much of a security deposit, how it would be applied, and so forth. So that's listed. It's about a million dollars in arrears that are I think listed on the petition with three or four, maybe even five lawsuits involving the Sherry-Netherland, if I'm not mistaken. MR. MORRISSEY: Okay.

Yes, the litigation with the Sherry actually affected the payments from this year, yes.

Okay. Thank you. MR. MORRISSEY:

that color.

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NYSCEF DOC. NO. 767 RECEIVED NYSCEF: 04/28/2021

Now since the petition was filed, has the debtor made any 2 maintenance payments?

No. No, the debtor didn't, sir.

Okay, understood.

Yeah.

Okay.

Sorry.

Okay. I'm going to turn now to the Pacific Alliance issue 9 and try to understand what that is about and how the debtor 10 itself is connected to that. 11 And I'm going to ask a question in sort of a leading 12 way, but my understanding is that there's an entity called 13 Pacific Alliance Asia Opportunity Fund that sued Mr. Kwok and 14 the debtor in 2017. And this was in connection with a personal 15 guaranty of a loan obligation. 16 And I guess my question, Ms. Wang, is did that loan 17 obligation relate to the debtor itself or the premises at the 18 Sherry-Netherland?

This litigation related to Mr. Kwok, K-w-o-k, himself, 20 personally, not related to Genever Holdings LLC, this company.

Okay. And not to the apartment, correct?

Not to Genever Holdings LLC.

23 himself. He signed a personal guaranty by himself.

24 Genever Holdings LLC did not exist.

25 property either.

NYSCEF DOC. NO. 767 INDEX NO. 652077/2017 FILED: NEW YORK COUNTY CLERK 04/28/2021 10:54 PM

Okay. The loan obligation you mentioned.

2 itself, Genever Holdings, is not a party to that loan 3 obligation, is that correct?

Correct, sir.

Okay. You listed in the schedules, I believe, a \$67.5 6 million claim of Bravo Luck Limited, and I believe you 7 mentioned it before, and said it was an unsecured claim, is 8 that correct?

Yes. Bravo Luck Limited is listed as non-priority 10 unsecured claim, yes, sir.

Okay. I'd like to interject a comment now, Ms. Wang.

12 just wanted to make sure you understand that neither Mr. Kwok 13 or any other individuals or Bravo Luck is represented by Mr. 14 Nash and his firm in this case.

15 represented by Mr. Nash and his firm. 16 To the extent that Bravo Luck or anyone else wishes 17 to assert its or his interest in the debtor, or with respect to 18 the debtor, those entities or individuals would have to retain 19 their own separate counsel.

20 understand that?

Yes, understood. Thank you.

23 MR. NASH: And, Richard, I think they have their own 24 counsel. I think it's Pepper Hamilton. 25 MR. MORRISSEY:

Wang - Morrissey 21 1 or Bravo Luck? 2 MR. NASH: I'm talking about Bravo Luck. 3 A Bravo Luck. 4 MR. NASH: I don't know Bravo Luck, Pepper Hamilton. 5 I know I've copied them on e-mails when I did propose bidding 6 procedures which I sent out to everybody. But I do think they 7 represent, it's definitely Bravo Luck, and maybe the son as 8 well. 9 MR. MORRISSEY: Okay, thank you. 10 Q Now there's another claimant called Golden Spring New York 11 Limited with a \$1.8 million claim. Could you explain, Ms. 12 Wang, what that is? 13 A This claim is -- Golden Spring New York is the family 14 office located in Manhattan here, paid some of expenses for 15 this apartment also. 16 Q Could you repeat that last sentence please? 17 A This family office pays some of the expenses related to 18 the Sherry apartment also, which is about like 1.8 million in 19 total so far. 20 Q Now when you said paid expenses, is that related to the 21 purchase or is that related to the maintenance or something 22 else? 23 A That related to some maintenance and like some repair and 24 like the terrace work, et cetera. 25 Q Okay. Are they still making such -- paying expenses for FILED: NEW YORK COUNTY CLERK 04/28/2021 10:54 PM INDEX NO. 652077/2017 NYSCEF DOC. NO. 767 RECEIVED NYSCEF: 04/28/2021 Case 22-50073 Doc 2032-35 Filed 07/25/23 Entered 07/25/23 13:27:53 Page 9 of 13

NYSCEF DOC. NO. 767 INDEX NO. 652077/2017 FILED: NEW YORK COUNTY CLERK 04/28/2021 10:54 PM

1 the debtor?

I believe so.

Okay. I was going to say a word about operating reports a 4 little later, but for right now, any payments that the debtor 5 is receiving from another entity should be reflected in the 6 operating reports. And you can discuss with Mr. Nash exactly 7 how to do that. But we want to know if the debtor is getting 8 contributions from somebody, whether it's a related entity or 9 someone controlled by one of the individuals that controls 10 Genever itself. So if you could please make sure that happens 11 when the operating reports are filed, okay?

Yes.

And once again, Mr. Nash cannot represent Golden Spring 14 New York.

Okay.

Okay. And also Mr. Guo, G-u-o, I apologize if I'm 17 mispronouncing that, and Bravo Luck, slash Bravo Luck Limited, 18 has a \$5 million claim.

19 million claim listed or is that -- is there a difference or is 20 that the same?

It's separate.

22 Limited.

Okay. And now those are the two numbers you mentioned 24 before in connection with the purchase of the apartment, 25 correct?

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NYSCEF DOC. NO. 767 RECEIVED NYSCEF: 04/28/2021

Yes.

Okay. So that was -- was that in the form -- that was in 3 the form of a loan?

I believe they have a trust agreement.

Okay. But in other words, did Bravo Luck forward that 6 money in connection with the purchase with an expectation of 7 being repaid as if it were a loan?

Yes, that's right.

Okay. And same with Mr. Guo with respect to the \$5 10 million, is that correct?

Yes.

Okay. Do you have documents reflecting that as a loan?

I believe so. I have to find out.

Okay.

It's not in front of me right now.

Yeah, if you could provide that to Mr. Nash and I would 17 ask Mr. Nash to provide that to me?

Yes.

Okay, thank you. 20 MR. NASH: We will do that.

21 was a, if I'm not mistaken, I did review the closing statement. 22 So I will go back into my e-mails and dig that out. 23 MR. MORRISSEY: Okay, yes.

24 forward the e-mail to me, that would be the easiest thing. 25 MR. NASH: Yes.

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NYSCEF DOC. NO. 767 RECEIVED NYSCEF: 04/28/2021

1 were speaking as well. 2 MR. MORRISSEY: Okay, thank you.

Mr. Nash mentioned something, Ms. Wang, earlier about 4 bidding procedures. Does the debtor intend to sell the co-op?

Yes, the debtor decided to sell the apartment.

Okay. And are you handling the sale for the debtor?

7 other words, are you the principal person handling the sale or 8 is someone else doing that?

Yes, I'm the person handling this also.

10 scheduled a meeting with our realtor broker a month ago so.

Okay. That was going to be my next question, whether you 12 had hired a broker. Who is the broker? 13 MR. NASH:

14 with this. We've designated a proposed broker, Harris Stevens, 15 a woman by the name of Kathy Sloane.

16 it, a good relationship with the Sherry-Netherland. 17 We setup a call with all parties, I think on Monday, 18 for everybody to speak to the broker and to get her feeling on 19 how this would proceed on a sale. 20 I'm looking to get a consent of all the parties as to 21 the broker, as to possible bidding procedures, and be in a 22 position to file papers with the Court on a consensual basis if 23 we can get it. And that's why I circulated the papers in 24 advance. I should send you a copy as well.

25 counsel have them.

NYSCEF DOC. NO. 767 INDEX NO. 652077/2017 FILED: NEW YORK COUNTY CLERK 04/28/2021 10:54 PM

1 And one of my calls with -- I called Pacific 2 Alliance. They wanted to speak to the broker.

3 reached out to the broker and I think from the last e-mails 4 we're looking at a call sometime on the day on Monday. 5 MR. MORRISSEY: Okay, thank you.

And, Ms. Wang, I just want to make clear to you that the 7 broker would have to be retained by the debtor, and that 8 retention has to be approved by the Bankruptcy Court.

9 want to make sure you understand that?

Yes.

Okay.

Thank you, sir.

Do you know if the broker has conducted an appraisal?

Yeah. This is the same broker when Genever Holdings LLC 15 purchased this apartment.

16 well, including the facility, the condition and like terrace, 17 you know, all the details.

18 relationship with Sherry also, as far as I know.

Okay. But do you know if the debtor has actually done, 20 conducted an appraisal now for 2020?

No, we didn't. I think. 22 MR. NASH:

23 sense. Just to give you a little history.

24 purchased for \$70 million.

25 from that purchase price over the years, as I understand it