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UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF MICHIGAN - SOUTHERN DIVISION

IN RE:

STRAIGHT UP ENTERPRISES, INC. Case No. 19-31010


Chapter 11 proceeding

Debtor.
_____________________________ Judge: Daniel S. Opperman

ORDER REGARDING DEBTOR’S MOTION


FOR PERMISSION TO USE CASH COLLATERAL
PENDING A FINAL HEARING

The Debtor filed a Motion for the entry of an order permitting the use of cash
collateral, and a Motion for an immediate hearing to allow the use of its cash collateral. The
court having considered at the expedited hearing the Debtor’s Motion for interim relief, and
being therein advised,

IT IS ORDERED AS FOLLOWS:

1. The Debtor is granted leave to use cash collateral in an amount not greater
than $606,512.00, as set forth on Exhibit A filed herewith, which the court finds to be the
amount necessary to avoid immediate and irreparable harm to its business until the final
hearing. Each Monday before the close of business, the Debtor shall provide JPMorgan
Chase Bank and the US Trustee with a cash receipts and disbursements report. The
report shall show an opening balance, cash receipts for the preceding week, cash
disbursements for the preceding week, and the balance as of the close of business on the
Sunday preceding the Monday report. The cash receipts and disbursements report shall
be based upon the Debtor’s ledger balance. The reports shall be provided for the week
ending Sunday, May 5, Sunday, May 12, Sunday, May 19, and Sunday, May 26. The
Debtor, as guarantor of the obligations of JD2 Commercial, LLC, will use its best efforts to
assure that the monthly payment obligations owed by JD2 Commercial, LLC falling due
while this Order is in effect will be paid timely.

2. A final hearing on the Debtor’s Motion shall be held on the 22nd day of May,
2019 at 11:00 o’clock in the forenoon at the United States Bankruptcy Court, 226 W.
Second Street, Flint, Michigan. Objections must be filed within fifteen (15) days from the
date of this Order and served on Debtor’s counsel, Dennis M. Haley, Winegarden Haley
Lindholm Tucker & Himelhoch, G-9460 S. Saginaw Street, Suite A, Grand Blanc, Michigan
48439. It is provided, however, that an official committee may file objections within 14 days
after it is served with the Order.

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3. The court finds the Debtor’s offer of adequate protection offered in the Motion
to the creditor JPMorgan Chase Bank to be adequate, but only for purposes of the use of
cash collateral until the hearing date, and without prejudice to JPMorgan Chase’s right to
object to entry of a Final Order Authorizing the Debtor’s Use of Cash Collateral.

IT IS FURTHER ORDERED THAT:

a) JPMorgan Chase Bank is granted a lien upon the Debtor’s post filing “Cash
Collateral”, as that term is defined in 11 U.S.C. § 363(a) of the Bankruptcy Code, as
adequate protection and as a replacement lien for the Debtor’s use of pre-petition Cash
Collateral. The priority of JPMorgan Chase Bank’s lien in the post-petition Cash Collateral
shall be based upon the priority of its lien in pre-petition Cash Collateral used by the
Debtor.

b) The Debtor will pay monthly interest to JPMorgan Chase Bank at the non-
default note rate.

c) The Debtor will not engage in any activities, including sales of its assets, out
of the ordinary course of its business.

d) The Debtor will maintain and insure all of its tangible personal property, and
pay any and all post-petition personal property taxes to prevent a lien from accruing upon
those tangible assets, and provide, at JPMorgan Chase Bank’s request, proof of the
insurance and proof of the payment of the post-petition personalty property taxes.

The Debtor shall, within twenty-four hours of the entry of this Order, serve it upon
all parties required to be served under BRP 4001(d) and 1007(a) by reference, which is the
twenty largest unsecured creditors and JPMorgan Chase Bank.
Signed on May 01, 2019

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