Free Letter - District Court of Delaware - Delaware

Case 1:04-cv-00910-Gl\/IS Document 190 Filed 08/O4/2006 Page 1 of 2
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August 4, 2006
The Honorable Gregory M. Sleet
United States District Court
for the District of Delaware
844 North King Street
Lock Box 19
Wilmington, DE t980l
Re: Integrated Health Services of Cliff Manor, Inc., et al. v. THCI Company
LLC, CA. No.0¢i»—9l0 {GMS)
Dear Judge Sleetc
We are the attorneys for plaintiffs and additional counterclaim defendant Abe
Briarwood Corporation (collectively, "P1aintiffs"). We write in furtherance of our letter of July
27, wherein we agreed to turn over the properties, and the operation of the nursing facilities to
landlord, as at the end of the day on August 31, together with cash on hand and receivables,
provided defendant would agree to dedicate those funds, to the extent necessary, to pay payroll
and other payables extant as ofthe turnover date.
We have not heard from defendant in response to our offer. The offer remains
open. In connection therewith, we are prepared to enter into a Consent Order so providing. We
enclose herewith two forms of Consent Order. We are prepared to enter into whichever one
defendant wishes. One assumes defendant accepts our offer on the terms stated. The other
assumes defendant does not wish to accept dedicated funds, even though they are projected to
yield a $3.5 million surplus for application to back rent. Both Orders provide for the turnover as
at the end of the day on August 31.
We do trust defendant will promptly communicate its agreement to one or the
other of these proposed Consent Orders. We continue to note that the Order proposed by
defendant may not be entered, for the reasons set forth in our earlier correspondence.
Respectfully yours,
Jason M. Madron
IMM/ima
Enclosure
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Case 1:04-cv-00910-Gl\/IS Document 190 Filed 08/O4/2006 Page 2 of 2
The Honorable Gregory M. Sleet
August 4, 2006
Page 2
cc: Collins J. Seitz, Esq. (W/enc., vla e—mail and First Class U.S. Mail)
Davis S. Sager, Esq. (vv/enc., via e—mail and First Class U.S. Mail)
Michael R. Lastowski, Esq. (w/enc., via e—mail and First Class U.S. Mail)
Aurora Cassirer, Esq. (w/enc., via e—mail and First Class U.S. Mail)
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