2020-08-28_GENERAL DOCUMENTS - C1980004 ‎(7)‎

• Permit No: C1980004
• IBM Index Class Name: General Documents
• Doc Date: 8/28/2020
• Doc Name Note: Hopedale Mining , LLC Case No. 20-12043 ‎(GRH)‎
• Doc Name: Objection of Wintrust Commercial Finance to Sale Motion & Equipment Lease Cure Cost
• From: Brook Gibson
• To: DRMS
• Permit Index Doc Type: General Correspondence
• Email Name: JRS
• Email Name: JDM
• Email Name: CMM
• Email Name: GRM
• Email Name: CCW
• Media Type: D
• Archive: No

Case 1:20-bk-12043 Doc 303 Filed 08/28/20 Entered 08/28/20 11:03:45 Desc Main
Document Page 7 of 13
18. While the Debtors are not permitted by the Bankruptcy Code to sell the Wintrust
Equipment absent further agreement with Wintrust, they may assign the Lease Agreement as an
unexpired lease, provided that the requirements of Section 365 of the Bankruptcy Code are met.
B. A more certain time schedule is needed for lease rejection and return of
equipment.
19. The Sale Motion is also objectionable because of the uncertainty about rejection of
the Lease Agreement and return of the Wintrust Equipment.
20. If the purchaser of the Debtors' assets decides not to assume the Lease Agreement,
the debtors -in -possession are exposed to continued administrative expense until Rhino Energy
LLC has fulfilled its fiduciary duty to provide for the return of the Wintrust Equipment to Wintrust
in accordance with the terms of the Lease Agreement. See In re Hayes Lemmerz Intern., Inc., 340
B.R. 461, 476-80 (Bankr. D. Del. 2006) (granting administrative expense claim to equipment
lessor for lessee's failure to maintain equipment and post-petition damage to equipment); In re
Trucking Services, Inc., 851 F.2d 159, 162 (6th Cir. 1988) (lessor is entitled to administrative
expense under section 503 for failure of lessee to repair leased equipment).
21. After an "Event of Default" under the Lease Agreement, Rhino Energy LLC is
required to return the Wintrust Equipment to Wintrust, if requested to do so by Wintrust. (Hallauer
Decl. at ¶ 18). Alternatively, Rhino Energy LLC agreed to allow its premises to be used for storage
of the Wintrust Equipment, without liability, after an Event of Default occurs. (Id.).
22. As a result of the size and weight of the Wintrust Equipment, transporting the
equipment over the road to a new location would be burdensome and expensive. (Id. at ¶ 17). If
the Lease Agreement is not assigned in connection with the Debtors' asset sale, the Debtors and
Wintrust stand to benefit if the Wintrust Equipment can be remarketed from its current locations.
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