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Case 1:20-bk-12043 Doc 466 Filed 10/09/20 Entered 10/09/20 14:25:40 Desc Main <br />Document Page 7 of 9 <br />"remains a safeguard of officer and director interests," like those of Hughs regardless of <br />the D&O Insurance Policy's indemnification provision. Id. The Debtor has no right to the <br />proceeds of a claim that the Debtor has not made and the Debtor derives no benefit from <br />having those funds withheld from Hughs. Rather, Hughs' interest in being indemnified — <br />to the tune of $389,271.28 in fees and costs, and counting — is the subject of the policy and <br />Debtor's right to direct payment from the insurer to cover the indemnification obligations <br />is merely incidental. Direct or not, Hughs is a beneficiary of the insurance because <br />protecting the interests of directors and officers, even in the face of such an indemnification <br />clause, is the fundamental purpose of D&O Insurance Policies. <br />4. Thus, the only question this Court must answer is whether there is independent cause to lift <br />the Automatic Stay in favor of Hughs. <br />5. Clearly, cause exists in this case: Hughs will suffer irreparable harm — becoming <br />responsible for nearly $400,000 in fees and costs — not to mention his inability to fund the <br />ongoing cost of representation with regards to the internal and government investigations. <br />WHEREFORE, in light of his entitlement to indemnification under the Royal Bylaws and <br />Rhino LP Agreement, the fundamental purpose of D&O Insurance Policies, and the irreparable <br />harm he will suffer if relief is not granted, Hughs respectfully requests that this Court grant his <br />Motion for Relief from the Automatic Stay. <br />Dated: October 9, 2020 Respectfully submitted, <br />/s/ Derek C. Smith <br />Derek C. Smith (OH Bar # 0069096) <br />Michael Dockterman (pro hac vice) <br />STEPTOE & J01 NSON LLP <br />227 W Monroe Street, Suite 4700 <br />Chicago, IL 60606 <br />Telephone: (312) 577-1300 <br />7 <br />