Free Order on Motion to Appoint Receiver - District Court of Colorado - Colorado

Case 1:01-cv-00275-JLK

Document 937

Filed 04/24/2007

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Action No. 01-cv-00275-JLK DOMINICK PAOLONI, et al., Plaintiffs, vs. DONALD I. GOLDSTEIN, et al., Defendants, and NBSA, LLC, et al., Relief Defendants. ______________________________________________________________________________ ORDER APPOINTING SCOTT A. ELK AS RECEIVER ______________________________________________________________________________ THIS MATTER comes before the Court pursuant to this Court' Order that Plaintiffs s nominate a receiver for the property, assets and business affairs of Blue Paper, Inc., a Florida corporation and the Motion to Appoint Receiver of the Plaintiffs requesting the appointment of Scott A. Elk of the firm of Elk, Christu & Bakst, LLP of Boca Raton, Florida to be appointed as receiver for the property, assets and affairs of Blue Paper, Inc. The Court has reviewed the Motion for Appointment of Receiver, including Exhibit A attached to such Motion, which is the biography of Scott A. Elk, and being fully advised in the premises, enters the following orders: IT IS HEREBY ORDERED that the Court appoints Scott A. Elk of the firm of Elk, Christu & Bakst, LLP of Boca Raton, Florida as receiver, pursuant to 28 U.S.C. § 754 of the

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Case 1:01-cv-00275-JLK

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property, assets and business affairs of Blue Paper, Inc., a Florida corporation. No bond is required in connection with the appointment of Scott A. Elk as receiver. IT IS FURTHER ORDERED that to the extent deemed necessary and appropriate for the protection and preservation of the property and assets of Blue Paper, Inc., including, but not limited to, the following described property, which is hereinafter referred to as the " Blue Paper Property,"that Scott A. Elk take control of all property, real, personal or mixed, including any assets or funds, wherever located, of Blue Paper, Inc. at any bank, brokerage firm or financial institution which has possession, custody or control of any assets of Blue Paper, Inc. whereever located. Parcel B, HILLSBORO CLUB, according to the plat thereof, recorded in Plat Book 148, Page 32, of the Public Records of Broward County, Florida. Together with; That part of the South 300 feet of Government Lot 5, Section 20, Township 48 South, Range 43 East, Broward County, Florida, lying Northwesterly of a line 20.00 fee Northwesterly of the Baseline of Survey for State Road A-1-A, according to the Right of Way map for Section 86050-2502; a portion of said Baseline of Survey described as follows: BEGIN at Baseline of Survey station 551 + 58.22 on a curve concave Northwesterly, having a chord bearing of North 38N05'23" East; thence Northeasterly along said curve, having a radius of 716.78 feet, through a central angle of 35N19'30" and an arc length of 441.56 feet to the END of said curve at Baseline of Survey station 555+99.78. Less Right of Way dedicated by plat, THE HILLSBORO CLUB, according to the Plat thereof, as recorded in Plat Book 149, Page 32 of Public Records of Broward County, Florida. Also known as: All of 900 HILLSBORO, according to the plat thereof, recorded in Plat Book 170, Pages 176 and 177, of the Public Records of Broward County, Florida. IT IS FURTHER ORDERED that acts of Scott A. Elk in protecting and preserving the Blue Paper Property include, but are not limited to, overseeing completion of construction of the

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Case 1:01-cv-00275-JLK

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Blue Paper Property, the advertising and/or listing for sale of the townhome units included within the Blue Paper Property, the entry into agreements listing for sale with qualified real estate brokers of the townhouse units included within the Blue Paper Property, the entry into and execution of agreements for sale of the townhome units included within the Blue Paper Property and the execution of any and all documents, including, but not limited to deeds of conveyance in connection with the sale of any of the units included within the Blue Paper Property. In

connection with the foregoing, the receiver is authorized to do any and all acts related to and/or necessary to implement and/or accomplish the foregoing acts. It is further ordered that the receiver is hereby authorized to do any and all other acts necessary and/or incidental to the preservation and protection of the assets of Blue Paper, Inc. and necessary and/or incidental to the sale of the townhome units located upon the Blue Paper Property. IT IS FURTHER ORDERED that Joseph F. Ieracitano, the current president of Blue Paper, Inc., shall fully cooperate with the receiver for purposes of allowing the receiver to fulfill his duties and responsibilities pursuant to this Order. Such cooperation includes, but is not limited to, responding to verbal inquiries from the receiver, responding to written inquiries from the receiver, providing the receiver with any and all information requested by the receiver concerning the Blue Paper Property, providing to the receiver or the receiver' designee, keys to s each of the townhome units located upon the Blue Paper Property, affording the receiver, and/or his designee, access to the Blue Paper Property and the townhome units located upon the Blue Paper Property at any reasonable time requested by the receiver and at the request of the receiver, participating in conferences and/or meetings with BankUnited, FSB, potential purchasers of any of the townhome units located upon the Blue Paper Property and with any other persons reasonably requested by the receiver.

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Case 1:01-cv-00275-JLK

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Filed 04/24/2007

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IT IS FURTHER ORDERED that the protection and preservation of the assets of Blue Paper, Inc., including the Blue Paper Property, as well as all matters related to the offer for sale and sale of the townhome units included on the Blue Paper Property is not the carrying on of business connected with such property within the meaning of 28 U.S.C. § 959(a). Any claims of Joseph F. Ieracitano and/or any third party concerning the acts or transactions of the receiver pursuant to this Order may not be brought without first obtaining leave of this Court. IT IS FURTHER ORDERED that the receiver is authorized to incur reasonable expenses and to engage, employ and/or designate persons necessary to assist in carrying out his duties and responsibilities under this Order. The receiver shall make application to this Court for costs, fees and expenses for services, describing in reasonable detail the nature of the services performed and, to the extent funds are available, shall be paid from funds of Blue Paper, Inc. To the extent Blue Paper, Inc. lacks adequate funds to pay the costs, fees and expenses of the receiver, as approved by this Court, then, Viatical Administrators, Inc. shall pay such costs, fees and expenses and such amounts paid by Viatical Administrators, Inc. shall be repaid to Viatical Administrators, Inc. by Blue Paper, Inc. as soon as Blue Paper, Inc. possesses funds to pay all or any portion of such fees, costs and expenses. In additional Viatical Administrators, Inc. shall have a constructive trust and equitable lien upon any funds and assets of Blue Paper, Inc. to the extent necessary to satisfy amounts which Viatical Administrators, Inc. has paid to the receiver hereunder. IT IS FURTHER ORDERED that Scott A. Elk shall not be liable for actions taken or omitted to be taken in good faith and without gross negligence. IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for all purposes.

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DATED this 24th day of April, 2007. BY THE COURT: s/John L. Kane John L. Kane, U.S. District Court Judge

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