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1 2 3 4 5 6 7 8 9 In re 10 TC GLOBAL, INC., 11 Debtor.

12 13 14 15 16 17 18 19 20 21 (1) 22 23 24 25 26 TO: AND TO: AND TO: HEARING DATE: HEARING TIME: RESPONSE DUE: LOCATION:

HONORABLE KAREN A. OVERSTREET HEARING DATE: FRIDAY, OCT. 26, 2012 HEARING TIME: 9:30 A.M. LOCATION: SEATTLE, COURTROOM 7206 RESPONSES DUE: AT TIME OF HEARING

UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF WASHINGTON

No. 12-20253 NOTICE OF EMERGENCY MOTION FOR ORDER (i) APPROVING INTERIM BRIDGE FINANCING AGREEMENT; (ii) GRANTING FIRST-POSITION LIENS AND SUPERPRIORITY CLAIMS; AND (iii) SCHEDULING FINAL HEARING

THE CLERK OF THE COURT THE HONORABLE KAREN A. OVERSTREET ALL PARTIES-IN-INTEREST FRIDAY, OCTOBER 26, 2012 9:30 A.M. AT TIME OF HEARING UNITED STATES BANKRUPTCY COURT, COURTROOM 7206, U.S. COURTHOUSE, 700 STEWART STREET, SEATTLE, WASHINGTON 98101

PLEASE TAKE NOTICE that TC Global, Inc. (“Debtor”), debtor in possession, has filed an emergency motion (the “Motion”) with the court seeking entry of an order as to the following matters: Approving, on an interim basis, bridge financing from Gibraltar Business Capital (“Gibraltar”) in the amount of $300,000 upon terms as detailed in the Motion;

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NOTICE OF EMERGENCY MOTION FOR ORDER (i) APPROVING INTERIM BRIDGE FINANCING AGREEMENT; (ii) GRANTING FIRST-POSITION LIENS AND SUPERPRIORITY CLAIMS; AND (iii) SCHEDULING FINAL HEARING – Page 1

B USH S TROUT & K ORNFELD
LAW OFFICES

LLP

5000 Two Union Square 601 Union Street Seattle, Washington 98101-2373 Telephone (206) 292-2110 Facsimile (206) 292-2104

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(2)

Approving, on an interim basis, the granting of first-position liens against substantially all the Debtor’s assets and superpriority claims in favor of Gibraltar in connection with such financing; and Scheduling a final hearing on these matters.

(3)

As detailed in the Motion, the Debtor commenced this case on October 10, 2012 (the “Petition Date”) by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The Debtor has continued in possession of its property and has continued to operate and manage its business as a debtor in possession pursuant to §§ 1107(a) and 1108 of the Bankruptcy Code. The Debtor did not have a line of credit or similar financing for its operations as of the Petition Date. The Debtor’s operations have been funded exclusively from cash generated from its operations and from trade credit from its vendors and suppliers. With the commencement of this case, the Debtor’s business planning and budget forecasting assume that there will be no further trade credit and that the Debtor will need to pay its vendors on a COD or CIA basis. The Debtor’s cash flow projections demonstrate the Debtor’s available cash will be almost fully depleted by the end of the week ending October 27, 2012. Because the level of remaining cash will be so low, there will at that point be no assurance that the Debtor will be able to fully fund payroll and other operating expenses during the week ending November 3, 2012. Under the circumstances, the Debtor might be forced to cease operations rather than accrue expenses without the assurances that these expenses will be paid. The Debtor therefore requires immediate access to postpetition financing in order to continue paying its employees, maintain business operations, preserve its assets, and preserve the Debtor as an on-going concern. In the absence of such financing, the Debtor and the estate will suffer immediate and irreparable harm to the Debtor. The proposed financing from Gibraltar is a portion of an overall strategy in the Debtor’s prosecution of this case. The financing provided by Gibraltar will permit the Debtor the time necessary to complete negotiations with other potential lenders as to a DIP credit facility in the $1.0-$2.0 million range. This larger facility will then carry the Debtor through a process by which the assets related to the Debtor’s ongoing operations can be sold in a reasonable fashion. If such a sale can be completed, a return can be generated for creditors. The Motion is on file with the above-captioned Court, together with supporting documents. Any party desiring information as to the details may request same from the Clerk of the Court or from the undersigned counsel. IF YOU OPPOSE the motion, you must file your written response with the court clerk, serve two copies on the Judge’s chambers and deliver copies to the undersigned NOT LATER THAN THE RESPONSE DATE, which is THE TIME OF THE HEARING SET FORTH ABOVE.

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NOTICE OF EMERGENCY MOTION FOR ORDER (i) APPROVING INTERIM BRIDGE FINANCING AGREEMENT; (ii) GRANTING FIRST-POSITION LIENS AND SUPERPRIORITY CLAIMS; AND (iii) SCHEDULING FINAL HEARING – Page 2

B USH S TROUT & K ORNFELD
LAW OFFICES

LLP

5000 Two Union Square 601 Union Street Seattle, Washington 98101-2373 Telephone (206) 292-2110 Facsimile (206) 292-2104

Case 12-20253-KAO

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IF NO RESPONSE IS TIMELY FILED AND SERVED, the Court may, in its discretion, GRANT THE MOTION PRIOR TO THE HEARING, WITHOUT FURTHER NOTICE, and strike the hearing. DATED this 23rd day of October, 2012. BUSH STROUT & KORNFELD LLP

By /s/ James L. Day James L. Day, WSBA #20474 Attorneys for TC Global, Inc.

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NOTICE OF EMERGENCY MOTION FOR ORDER (i) APPROVING INTERIM BRIDGE FINANCING AGREEMENT; (ii) GRANTING FIRST-POSITION LIENS AND SUPERPRIORITY CLAIMS; AND (iii) SCHEDULING FINAL HEARING – Page 3

B USH S TROUT & K ORNFELD
LAW OFFICES

LLP

5000 Two Union Square 601 Union Street Seattle, Washington 98101-2373 Telephone (206) 292-2110 Facsimile (206) 292-2104

Case 12-20253-KAO

Doc 79

Filed 10/24/12

Ent. 10/24/12 09:12:03

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