Trustee locks in Chapter 7 cash-collateral budget
The March 27 hearing was cancelled because the court had already resolved the Chapter 7 Trustee’s cash-collateral motion, leaving no hearing necessary on the Silverview stipulation, according to the hearing-cancellation agenda. The approved stipulation gives David W. Carickhoff, as Chapter 7 Trustee, a funded path to administer what remains of the Pinstripes estates after the operating-business sale and conversion.
Under the cash-collateral order, the Trustee receives an initial administrative expense carve-out of $400,000 plus the Trustee’s commission, funded from $25,000 in existing bank accounts, $50,000 from New Jersey liquor-license sale proceeds, excess Chapter 11 carve-out reserves, and other collateral proceeds. After those carve-outs, excess liquor-license proceeds go to Silverview Credit Partners’ superpriority claim, and 90% of other collateral proceeds flow to Silverview until its superpriority, first-lien, and second-lien claims are paid. The Trustee also released Silverview and related secured parties and cannot use cash collateral to challenge their liens or pursue lender-liability claims. The order effectively fixes the budget and economics for the Chapter 7 wind-down while preserving only a narrow estate share of future collateral recoveries.