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Case 19-30256-VFP Doc 448 Filed 06/26/20 Entered 06/26/20 16:44:49 Desc MainDocument of 3

Case 19-30256-VFP Doc 448-1 Filed 06/26/20 Entered 06/26/20 16:44:49 DescApplication in Support Page 1 of 11

WEBBER MCGILL LLC Douglas J. McGill, Esq. 760 Route 10, Ste. 104 Whippany, New Jersey 07981 Telephone: (973) 739-9559 Facsimile: (973) 739-9575 Counsel to the Debtor-in-Possession

GIBBONS P.C. Robert K. Malone, Esq. Brett S. Theisen, Esq. One Gateway Center Newark, New Jersey 07102 Telephone: (973) 596-4500 Facsimile: (973) 596-0545 Counsel to the Official Committee of Unsecured Creditors of CTE 1 LLC

UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF NEW JERSEY

In re: CTE 1 LLC, (d/b/a Lexus of Englewood) Debtor.

(Honorable Vincent F. Papalia) Chapter 11 Case No. 19-30256 (VFP)

DECLARATION OF SEAN RAQUET IN SUPPORT OF DEBTOR AND OFFICIAL COMMITTEE OF UNSECURED CREDITOR’S JOINT OBJECTION TO CLAIMS

FILED BY CARMINE ZECCARDI, SR., CARMINE ZECCARDI, JR. AND JENNIFER ZECCARDI

I, Sean Raquet, hereby submit this declaration (the “Declaration”) under penalty of

perjury:

Case 19-30256-VFP Doc 448-2 Filed 06/26/20 Entered 06/26/20 16:44:49 DescCertification in Support Page 1 of 3

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1. I am a Partner of Bederson LLP (“Bederson”), a financial advisory firm having

expertise in turnaround and bankruptcy issues. Bederson maintains an office located at 347 Mt.

Pleasant Ave, Suite 200, West Orange, New Jersey 07052. I make this declaration in support of

the Debtor and Official Committee of Unsecured Creditor’s Joint Objection to Claims Filed by

Carmine Zeccardi, Sr., Carmine Zeccardi, Jr. and Jennifer Zeccardi (the “Objection”). I am

over eighteen (18) years of age and I am authorized to submit the Declaration on behalf of the

Committee. If called upon to testify, I could and would competently testify to the facts set forth

herein from my own personal knowledge, except as otherwise stated.

2. During the administration of the Chapter 11 case,1 and by Order of this Court

dated January 14, 2020 [D.I. 200], Bederson serves as the financial advisors to the Official

Committee of Unsecured Creditors appointed in the Chapter 11 Cases of CTE 1 LLC (the

“Debtor”).

3. In my capacity as financial advisor for the Committee, I have become familiar

with the Debtor’s operations, business and financial affairs, and books and records. Except as

otherwise indicated, all facts set forth in this Declaration are based upon: (i) my personal

knowledge; (ii) my review of relevant documents; (iii) information supplied to me by members

of the Debtor’s management team or employees or by professionals retained by the Debtor,

including the former Chief Restructuring Officer, Steven F. Agran (the “CRO”), and the CRO’s

firm, Carl Marks Advisory Group; (iv) Charles Forman, the Debtor’s Independent Manager, or

(v) my experience and knowledge of the Debtor’s operations and financial condition.

4. In connection with my employment with Bederson, I have also been involved in

and am responsible for overseeing the claims review and objection process in the case. I have

1 Capitalized terms used in this Declaration but not otherwise defined herein shall have the meanings ascribed to

such terms in the First Omnibus Objection.


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reviewed and am familiar with the contents of the Objection, and am directly or indirectly,

through the various professionals and Omni Management Group (“Omni” or “Claims Agent”),

the Debtor’s claims and noticing agent, familiar with the information contained therein and in the

exhibits annexed thereto.

5. Under my supervision, considerable resources and time have been expended to

ensure a high level of diligence in reviewing and reconciling the Proofs of Claims filed in the

case. Either I or persons under my supervision have carefully reviewed and analyzed the

relevant Proofs of Claim set forth in the Objection.

6. To the best of my knowledge, information, and belief, insofar as I have been able

to ascertain after reasonable inquiry, the Claims set forth in the Objection satisfy the factual

predicated set forth in section 502(e)(1)(B) of the Bankruptcy for disallowance. Further, the

portion of Claim 58 filed by Carmine Zeccardi, Jr. set forth in paragraphs 5 and 6 are not

supported by the Debtor’s Books and Records or otherwise involve mandatory subordination

under section 510(b) of the Bankruptcy Code.

7. Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury the foregoing is

true and correct.

Executed on June 11, 2020

By: /s/ Sean Raquet

Sean Raquet, CPA, CFE Partner


WEBBER MCGILL LLC Douglas J. McGill, Esq. 760 Route 10, Ste. 104 Whippany, New Jersey 07981 Telephone: (973) 739-9559 Facsimile: (973) 739-9575 Counsel to the Debtor-in-Possession

GIBBONS P.C. Robert K. Malone, Esq. Brett S. Theisen, Esq. One Gateway Center Newark, New Jersey 07102 Telephone: (973) 596-4500 Facsimile: (973) 596-0545 Counsel to the Official Committee of Unsecured Creditors of CTE 1 LLC

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF NEW JERSEY

In re: CTE 1 LLC d/b/a Lexus of Englewood, Debtor.

: : : : : : : :

Chapter 11

Case No. 19-30256 (VFP)

ORDER GRANTING JOINT MOTION OF DEBTOR AND OFFICIAL COMMITTEE OF UNSECURED CREDITORS TO EXPUNGE AND/OR

RECLASSIFY CLAIMS FILED BY CARMINE ZECCARDI, SR., CARMINE ZECCARDI, JR. AND JENNIFER ZECCARDI

The relief set forth on the following pages, numbered two (2) through three (3) is hereby

ORDERED.

Case 19-30256-VFP Doc 448-3 Filed 06/26/20 Entered 06/26/20 16:44:49 DescProposed Order Page 1 of 3

Debtor: CTE 1 LLC d/b/a Lexus of Englewood Case No: 19-30256 (VFP) Caption of Order: Order Granting Joint Motion of Debtor and Official Committee of Unsecured Creditors to

Expunge And/Or Reclassify Claims Filed by Carmine A. Zeccardi, Sr., Carmine Zeccardi, Jr. and Jennifer Zeccardi

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Upon consideration of the Joint Motion of Debtor and Official Committee of Unsecured

Creditors for Entry of an Order Expunging and/or Reclassifying Claims Filed by Carmine A.

Zeccardi, Sr., Carmine Zeccardi, Jr. and Jennifer Zeccardi (the “Motion”),2 and upon

consideration of the Declaration of Sean Raquet and arguments of counsel; and it appearing that

the Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334; and due and

adequate notice of the Motion having been given under the circumstances; and upon the record

of the hearing (if any was held) and all of the proceedings had before the Court; and any

objections to the relief requested in the Motion having been resolved, withdrawn or overruled on

the merits; and after due deliberation and sufficient cause appearing therefor,

IT IS HEREBY ORDERED THAT:

1. The Motion is granted to the extent set forth herein.

2. Claim 54 filed by Carmine Zeccardi, Sr., the portion of Claim 58 filed by

Carmine Zeccardi, Jr. set forth in paragraphs 5 and 7 and Claim 57 filed by Jennifer Zeccardi are

disallowed and expunged.

3. The portion of Claim 58 filed by Carmine Zeccardi, Jr. set forth in paragraph 6

related to a claim for the purchase of equity in the Debtor shall be subordinated to all general

unsecured claims and reclassified as an equity claim.

4. The claims agent is authorized and directed to modify the claims register for the

this case in accordance with the terms of this Order.

2 Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Motion.


Debtor: CTE 1 LLC d/b/a Lexus of Englewood Case No: 19-30256 (VFP) Caption of Order: Order Granting Joint Motion of Debtor and Official Committee of Unsecured Creditors to

Expunge And/Or Reclassify Claims Filed by Carmine A. Zeccardi, Sr., Carmine Zeccardi, Jr. and Jennifer Zeccardi

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5. This Order is without prejudice to the rights of the Debtor, its estate, Committee

or any other party-in-interest to: (a) object to any claim on grounds other than as stated in the

Motion; and (b) object, on any grounds permitted by law or equity, to any claim, whether filed or

not, in the case. Further, any and all rights, claims and defenses with respect to any claims with

respect to the Debtor, its estate, Committee and parties-in-interest are reserved, and nothing shall

impair, prejudice, waive or otherwise affect any rights, claims and defenses or otherwise have a

preclusive effect on the Debtor, its estate or any of its successors and/or assigns.

6. Any and all affirmative claims which the estate may possess against any claimant

are hereby preserved and the rights of the Debtor, its estate, Committee or any party-in-interest

to use any available defenses under section 502 of the Bankruptcy Code, including the assertion

of an avoidance action to set off against or otherwise reduce all or part of any claim, are

preserved.


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