Federation Employment and Guidance Service, Inc. (d/b/a FEGS) Bankruptcy New Filing Alert: Stipulation Regarding Motion For Authority To Reject Agreements

On July 16, 2015, a stipulation regarding motion for authority to reject agreements was filed in the bankruptcy case of Federation Employment and Guidance Service, Inc. (d/b/a FEGS) and its affiliates.

The filing was assigned docket number 330 and is described on the court’s official docket as follows:

Stipulation and Order between the debtor, Hempstead Plaza LLC and Official Committee of Unsecured Creditors as follows: Conditional upon approval of the BH Transfer Motion, the transfer of the BH Programs to JBFCS on June 1, 2015 and execution of the New Lease, effective as of May 31, 2015 or such later date as the New Lease is effective between Landlord and JBFCS (the Effective Date), the Lease will be rejected under Bankruptcy Code section 365(a). The Debtor will deliver possession of the Premises to the Landlord, or its agent, on the Effective Date. As of the Effective Date, the Lease will be terminated. Within five (5) days after the Effective Date, the Debtor shall pay to the Landlord all rent and other charges due under the Lease for the period through the Effective Date. Except for the payments required to be made under this Stipulation, the Landlord waives all claims for rent and other charges under the Lease, including lease rejection damage claims under Bankruptcy Code section 502(b)(6). Landlord is holding a security deposit in the amount of $47,223.00 (Security Deposit Amount). The parties acknowledge there is due and owing from the Debtor the sum of $26,066.66 under the Lease (Arrears). The Debtor and the Landlord agree that on the Effective Date, the Landlord may offset the Arrears as against the Security Deposit Amount and shall promptly remit to the Debtor the balance in the amount of $21,156.34. After the Effective Date, the Personal Property will remain at the Premises, subject to any agreement reached between the Debtor and JBFCS. If the Debtor and JBFCS donot reach an agreement regarding the Personal Property, then Debtor will have thirty (30) days to remove the Personal Property from the Premises. (RE: related document(s)[185] Motion to Assume/Reject Lease or Executory Contract filed by Debtor Federation Employment and Guidance Service, Inc.). Signed on 7/16/2015 (sld)

Federation Employment and Guidance Service, Inc. (d/b/a FEGS) filed for bankruptcy protection, or had an involuntary bankruptcy petition filed against it, on March 18, 2015. The bankruptcy case is pending before the United States Bankruptcy Court for the Eastern District of New York . The case number for the lead bankruptcy case is 15-71074. The bankruptcy case is currently assigned to United States Bankruptcy Judge Robert Grossman. The law firm of Garfunkel Wild, P.C. is acting as lead bankruptcy counsel to Federation Employment and Guidance Service, Inc. (d/b/a FEGS) in the bankruptcy case.


Leave a Reply