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MARC J. WINTHROP- State Bar No. 63218
mwinthrop@winthropcouchot.com
2 KAVITAGUPTA-StateBarNo. 138505
kgupta@winthropcouchot.com
3 WINTHROPCOUCHOT
PROFESSIONAL CORPORATION
4 660 Newport Center Drive, Suite 400
Newport Beach, CA 92660
5 Telephone: (949) 720-4100
Facsimile: (949) 720-4111
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[Proposed] General Insolvency Counsel for
7 Debtor and Debtor-in-Possession
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UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
SANTA ANA DIVISION
14 Inre: Case No. 8:10-bk-24771-RK
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CRYSTAL CATHEDRAL 'v!INISTRIES, Chapter II Proceeding
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a California nonprofit corporation,
Debtor and
Debtor-in-Possession.
DEBTOR'S EMERGENCY MOTION TO LIMIT
NOTICE OF CERTAIN MATTERS
REQUIRING NOTICE TO CREDITORS
PURSUANT TO RULES 2002 AND 9007 OF THE
FEDERAL RULES OF BANKRUPTCY
PROCEDURE; AND MEMORANDUM OF
POINTS AND AUTHORITIES
[DECLARATION OF FRED W. SOUTHARD IN
SUPPORT THEREOF FILED
CONCURRENTLY HEREWITH]
DATE: October 20, 2010
TTME: 3:00p.m.
PLACE: Courtroom SD
411 W. Fourth Street
Santa Ana, CA 92701
MAll\ "DOCS-# 150!176-v 1-Crystal_ Limit_ Notice_ Motion.DOC
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I Crystal Cathedral Ministries, a California nonprofit corporation ("Debtor"), hereby moves
2 ("Motion'') the Court, on an emergency basis, for an order authorizing the Debtor to limit notice of
3 certain matters requiring notice to creditors pursuant to the provisions of Rules 2002, 9006
4 and 9007 of the Federal Rules of Bankruptcy Procedure.
5 Good cause exists in the Debtor's case to limit the service of notice to creditors as the
6 Debtor has more than 550 creditors. Requiring the Debtor to serve all of the creditors with notice
7 of all proceedings in this case would be administratively burdensome and unduly expensive.
8 The Debtor believes that, under the circumstances of this case, notices should be served
9 upon only the following entities:
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I.
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The Office of the United States Trustee;
The unsecured creditors holding the 20 largest claims, or, if a committee of
unsecured creditors is formed, to the committee or to any counsel employed by the
committee;
3.
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Secured creditors or their counsel; and
All parties who file and serve requests for special notice in this case.
16 Notwithstanding the foregoing, the Debtor will serve on all creditors, notice of certain
17 proceedings in the case which affect the interests of all creditors and equity holders, as described
18 herein.
19 This Motion is made on the basis of the concurrently filed Declaration of Fred W.
20 Southard ("Declaration"), the within points and authorities, and on such other evidence as the
21 Court elects to consider prior to or at the hearing on this matter.
22 WHEREFORE, the Debtor prays that this Court enter an order limiting notice of the
23 matters described in Rules 2002, 9006 and 9007 of the Federal Rules of Bankruptcy Procedure to
24 the creditors and parties-in-interest described above.
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DATED: October 19,2010
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WINTHROP COUCHOT
PROFESSIONAL CORPORATION
By: lsi Marc J. Winthrop
Marc J. Winthrop
Kavita Gupta
[Proposed] General Insolvency Counsel for the
Debtor and Debtor-in-Possession
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!\.WNDOCS-# I 50::176-vl-CrysLal_ Limit_ Notice_ Motion_DQC
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I MEMORANDUM OF POINTS AND AUTHORITIES
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3 THE NEED FOR LIMITING NOTICE ON AN EMERGENCY BASIS
4 The Debtor has more than 550 creditors. Requiring the Debtor to serve all of the creditors
5 with notice of all proceedings in this case and respond to the related inquiries arising therefrom
6 would be administratively burdensome and unduly expensive. The sooner that notice
7 requirements are lessened, the faster the estate can reduce expenses. Granting the relief requested
8 herein would substantially reduce the Debtor's postage and reproduction costs, as well as
9 attorneys' fees, from the outset of this bankruptcy proceeding, thereby facilitating significantly the
10 economical and efficient administration of the Debtor's case. Accordingly, the Debtor is
II requesting that it be allowed to serve notices upon the entities listed herein.
12 II.
13 STATEMENT OF FACTS
14 A. The Debtor.
15 The Reverend Dr. Robert H. Schuller and his wife, Arvella, founded the Debtor in 1955.
16 At that time, it consisted of a single church, kno"n as Garden Grove Community Church, which
17 held its services in space rented from the Orange Drive-In Theatre. The church moved to its
18 current location in Garden Grove, California in 1961, occupying a new sanctuary designed by
19 architect Richard Neutra. The campus has gro"n to include buildings designed by noted architects
20 such as Philip Johnson and Richard Meier.
21 The Debtor produces The Hour of Power, which is shown throughout the world and is
22 North America's longest nmning televised church service. lts message of "possibility thinking" is
23 also supported through its many facets, including, inter alia: (1) Pastors Sheila Schuller Coleman
24 and Dante Gebel delivery of messages of hope each Sunday. Dr. Schuller, who is 84, is the
25 featured speaker once per month; (2) providing meals for the homeless every Monday; (3)
26 conducting weekly youth groups; and ( 4) hosting a number of weekly self-help programs. The
27 Debtor has approximately 190 full-time and part-time employees who support its many facets.
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B. The Debtor's Proposed Limited Notice Procedures.
The Debtor believes that limiting notice to the U.S. Trustee, the secured and twenty largest
unsecured creditors and investors, and to all parties who request special notice in the Debtor's
Chapter 11 case, would provide adequate and proper notice to affected creditors and to other
interested parties. Additionally, the Debtor will provide notice to any party whose interest is
impacted directly by a particular action or proceeding filed by the Debtor.
Notwithstanding the Debtor's proposed procedures for limiting of notice in the Debtor's
case, the Debtor will provide to all creditors notice of the following matters:
l. the time fixed for filing objections to. and the hearing to consider approval
of, a disclosure statement;
2. the time fixed for filing objections to, and the hearing to consider
confirmation of, a plan;
3. any time fixed for filing objections to, and any hearing to consider, a
proposed sale of all or substantially all assets of the estate;
4. notices with respect to claims bar dates; and
5. any time fixed for filing objections to, and any hearing on, a dismissal of the
case.
18 The Debtor believes that adoption of this proposed notice procedure, after notice and the
19 opportunity for a hearing, is necessary and appropriate. Such notice procedure will relieve the
20 Debtor of the significant administrative burdens that would be associated with periodic "mass
21 mailings," and would reduce substantially the Debtor's postage and reproduction costs, as well as
22 the time spent by attorneys and/or paralegals, thereby facilitating significantly the economical and
23 efficient administration of the Debtor's case. Any entity whose interest is affected by any action or
24 proceeding filed by the Debtor will receive proper notice thereof. Moreover, any entity that is
25 sufficiently interested in the proceedings in the Debtor's case may, by written request for special
26 notice, receive all notices of such proceedings.
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III.
RULES 2002 AND 9007 OF THE FEDERAL RULES OF BANKRUPTCY
PROCIWURF: F:MPOWF:RS THF: COURT TO REGULATE NOTICES
Rule 2002 of the Federal Rules of Bankruptcy Procedure provides, in pertinent part, as
follows:
The Court may from time to time enter orders designating the matters in
respect to which, the entity to whom, and the form and manner in which
notices shall be sent except as otherwise provided by these rules.
Fed. R. Bankr. P. 2002(m).
Rule 9007 of the Federal Rules of Bankruptcy Procedure provides:
When notice is to be given under these rules, the court shall designate, if
not othem,.ise specified herein, the time within which, the entities to
whom, and the form and manner in which the notice shall be given.
When feasible, the court may order any notices under these rules to be
combined.
Fed. R. Bankr. P. 9007.
Pursuant to Rules 2002 and 9007 of the Federal Rules of Bankruptcy Procedure, this Court
has the authority to limit the manner of service of notice in the Debtor's case.
IV.
GOOD CAUSE EXISTS FOR LIMITING
NOTICE ON AN EMERGENCY BASIS
Procedural authorization for this emergency Motion is found in Rule 9006
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of the Federal
Rules of Bankruptcy Procedure, and in Local Bankruptcy Rule 9075-1? The Debtor believes that
an order, at the outset of this bankruptcy case, authorizing the limiting of service of those notices
set forth in Rules 2002 and 9007 ofthe Federal Rules of Bankruptcy Procedure will ultimately
benefit the creditors of the Debtor's estate by saving for the estate undue postage and photocopying
expenses and by eliminating the administrative burdens, which would be associated with the
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Bankruptcy Rule 9006(c) provides, in pertinent part:
"when an act is required or allowed to be done at or within a specified time by these rules or be a notice given
thereunder or by order of the court, the court for cause shown may in its discretion with or without motion or
notice order the period reduced."
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Rule 9075-l(a) and (b) of the Local Bankruptcy Rules for the Central District of California provides for hearings on
an emergency basis or, alternatively, on notice shorter than would otherwise be required under the Local Bankruptcy
Rules.
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MAINDOCS-# I 50876-v !-Crystal_ Limit_ Notice_ Motion.DOC
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Debtor having to serve all notices in the Debtor's case on the substantial number of creditors in this
2 case and responding to inquiries from unsophisticated parties who are often confused by the mass
3 number of pleadings in bankmptcy cases. Accordingly, the Debtor submits that, on the facts of this
4 case, emergency relief is both necessary and appropriate.
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6 NOTICE OF THE MOTION JS AUJ<:Ql/ATE
7 Notice of this Motion will be provided, by telecopy, overnight courier or hand-delivery, to
8 the following parties-in-interest: (a) the Office of the United Slates Trustee, (b) any secured
9 creditors, and (c) the twenty (20) largest unsecured creditors of the Debtor. 1n light of the limited
1 0 nature of the relief requested herein, the Debtor would submit that no further notice of the Motion
11 should be required. Under the circumstances of this case this notice is fair and reasonable.
12 VI.
13 CONCLUSION
14 Based on the foregoing, the Debtor respectfully requests that the Court grant the relief
15 requested herein, and such other and further relief as the Court may deem just and proper.
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DATED: October 19,2010 WINTHROP COUCHOT
PROFESSIONAL CORPORATION
..!_1 ____ _
Marc J . Winthrop
Kavita Gupta
[Proposed] General Insolvency Counsel for the
Debtor and Debtor-in-Possession
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MAl!\ DOCS-# 150876-v l-Crystal_ Limil_ Notice_ Motion.DOC
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NOTE: When using this form to indicate service of a proposed order, DO NOT list any person or entity in Category I.
Proposed orders do not generate an NEF because only orders that have been entered are placed on the CM/ECF docket.
PROOF OF SERVICE OF DOCUMENT
I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My
business address is: 660 Newport Center Drive., 4th Fl., Newport Beach, CA 92660.
A true and correct copy of the foregoing document described as: DEBTOR'S EMERGENCY
MOTION TO LIMIT NOTICE OF CERTAIN MATTERS REQUIRING NOTICE TO CREDITORS
PURSUANT TO RULES 2002 AND 9007 OF THE FEDERAL RULES OF BANKRUPTCY PROCEDURE
will be served or was served (a) on the judge in chambers in the form and manner
required by LBR 5005-2(d); and (b) in the manner indicated below:
I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF")- Pursuant
to controlling General Order(s) and Local Bankruptcy Rule(s) ("LBR"), the foregoing document will be
served by the court v1a NEF and hyperllnk to the document. On October 19, 2010, I checked the CMIECF
docket for this bankruptcy case or adversary proceeding and determined that the following person(s) are on
the Electronic Mail Notice List to receive NEF transmission at the email address(es) indicated below:
Frank Cadigan frank.cadigan@usdoj.gov
United States Trustee (SA) ustpregion16.sa.ecf@usdoj.gov
Marc J Winthrop mwinthrop@winthropcouchol.com, pj@winthropcouchol.cum
13 D Service information continued on attached page
14 II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(1ndicate method for each person or entity served):
On October 19, 2010 I served the following person(s) and/or entity(ies) at the last known address(es) in this
15 bankruptcy case or adversary proceeding by plac1ng a true and correct copy thereof in a sealed envelope in
the United States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as
1 6 follows. Listing the judge here constitutes a declaration that mailing to the judge w i l ~ completed no later
than 24 hours after the document is filed.
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181 Service information continued on attached page
Ill. SERVED BY PERSONAL DELIVERY, FACSIMILE TRANSMISSION OR EMAIL (indicate method for
each person or entity served) Pursuant to FR.Civ.P. 5 and/or controlling LBR, on___,,_--.,.-----,-
- I served the following person(s) and/or entity(1es) by personal delivery, or (for those who consented in
writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here
constitutes a declaration that personal delivery on the judge will be completed no later than 24 hours after
the document is filed.
D Service information continued on attached page
I declare under penalty of perjury under the laws of the United States of America that the foregoing is true
and correct.
October 19, 2010 Viann Corbin
Date Type Name
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Crystul Cathedral
Altn: Fred Southard. CFO
13280 Chapman A
(lrove. CJ\ 92R40-4414
Oul ufCuurl CununilLL:c
Nanette D Sanders. Esq
Ringstad & Sanders LLP
2030 Main Street. Suite 1200
lrYinc. CA 92614
F&M Hank of Long Beach
9 c/o Lawrence C. Meyerson, Esq.
578 Washington BlYd., #-867
1 0 Marina Del Rcy, CA 90292
II
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20 LAKl;t;ST
PNCE!'. LLC
Attn: Marshall F. Goldherg. Esq.
21700 Oxnard St. #430
Woodland Hills. CA 91367-3665
Promotional Media Inc.
/\lln: Denise Bodourinkoch
727 N. Main St.
Orange. CA 92868
lnfodsion Management Cmp.
Attn: Corporate OHicer
325 Springsidc Dr.
Akron. OH 44333
Medin Services Agency
Attn: John Casoria
P.O Oox 11901
Santa Ana. CA 92711
SERVICE VIA OVERNIGHT DELIVERY
United States "Irustccs OtT!cc
Atln: Frank Cadigan, Esq.
411 West l"ourth St. #9041
Srmt8 Am, CA 92701
Credit M1magers Association
Attn: ChHrles Klaus
40 East Verdugo Ave.
Burbank. C /\ 91 502
20 LAKl;t;ST
Daystar Television Nelwork.
Attn: Corporate Ofticcr
3901 Highway 121
BedlcJrd_ TX 76021
Gipson Hallinan & Pancione
Alln: Robert E.
190 I A venue of the Stars# 1100
Los Angeles. CA 90067-6002
Lutzker & Lutzker. LLP
Attn: Arnie l,utzker
1233 20
1
h StrcctNW
Suite 703
Washington, DC 20036
Classis of Califi.1rnia- Cat1yon Lake
Attn: Corporate Officer
12765 Oaks Avenue
Chino.CA91710
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CCM
20Largest. Secured, SpeciaiNotice
Document No. 153450
F&M Bank of Long Beach
c/o Michael Leight, Esq.
6700 Pacific Coast Ilwy, #237
! ,ong 11each, CA 90803
20 LARGEST
KMYQ
Tribune Television NW
Attn: Corporate Officer
File 30697/P.O. Box 60000
San Francisco, CA 94160
WKRC-TV
Newport Television LLC
Attn: Corporate Otliccr
P.O Box 1616
Dallas_ TX 75284-1646
A-I Building Maintenance, Inc.
Attn: Alan Bennett
P.O. Box 80507
Rancho Santa Margarita. CA 92688-0507
Advantage Mailing Inc.
Attn: Corporate Oftic.cr
1600 N. Kraemer Dlvd.
Anaheim. CA 92806
MAI!\DOCS-# 150876-v !-Crystal_ Lim it _No I ice __Motion. DOC
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FGS-CA. Inc._
Attn: Angela Moghadasnia
'5401 Jumrn Street
Ontario, CA 9176 I
Lloyd Daniel Corporation
Attn: OmJ St.:alf
1600 S_ Pcder31 Hwy
Pompano Beach. FL 330(,2
KWGN-TV
Attn: Corporate Officer
PO Rox n77146
Dallas. TX 75267-734(,
lJTII,JTY
AT & T
Alln: Corporate Officer
Payment Center
Sacramento, CA 95887-000 I
AT& TMohility
Attn: Corporate Officer
P.O. Box 6463
Carol St1eam. II_. 60197-6463
AT & T Teleconference
Alln: Corporate Officer
P.O. Box 2840
Omaha, NC 68103-2840
City oi'Orangc
Atln: Corporate OfTicer
P.O. Box 10146
Los Angeles. CA 90030-0146
CR & R I ncorroratcd
Attn: Corporate Officer
P.O. Box 206
Stanton. CA 90680
KMSP
Attn: Corporate Ot11cer
4614 Collection Center Dr_
Chicago, IL 60693
WKCF-TV
Alln: Corporate Officer
P _Q_ 11o:x 919060
Orlando. CA. 32891-9060
Scripps Howard Broad
dba KNXV
Attn: Corporate Officer
P.O. Box 116923
Allanla_ GA 30368
UTILITY
City of Garden Grove
Attu: Curpnratt: Onlct:r
P 0. Box ]070
Garden Urovc. CA 92842-3070
Garden GnlVc Disposal
Attn: Corporate Ofticer
P.O. Box 78829
Phoenix. AI- 85062-tH!ZIJ
Waste Management ofOC
Attn: Corporate Otlicer
P 0. Box 78251
Phoenix. i\Z 85062-8251
Tclcpacific Communications
Att11: Corporate Ofticer
P.O. Box 526015
Sacramento, CA 95852-6015
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World Markeling, Inc.
Attn: Rick Payne
14407 Alondra Blvd.
La Mirada. CA 90638
Thomas Nelson Publisher
AHn: Corporate OITicer
2576 Momentum PI
II, 60689-0001
liTILITY
Edison Company
Attn: Corporate Officer
1241 S. UnmdAvcnuc
Santa Ana. Ci\ lJ2705
The Gas Company
Attn: Corporate Officer
P.O. Box C
Monlerey Park, CA lJ 1756
Cox Communication
Atln: Corporate Ollicer
P.O. Box 53280
Phoenix. AI. 85072-Jno
V crizon Wireless
Attn: Corporate Officer
P.O. Box 9622
IIi lis. CA 91 J46-Y622
.MAII\UOL'S-# 150!':76-vl-l'rystal_l.nml No!lce Mo!lon.DOC