United States District Court, D. Nebraska, San Jose Division
ERIC J. ADAMS Special Assistant United States Attorney
BENJAMIN MIZER PRINCIPAL DEPUTY ASSISTANT ATTORNEY GENERAL BRIAN J. STRETCH, Acting United States Attorney ALEXG. TSE Chief, Civil Division, ERIC J. ADAMS Special Assistant
CHRISTOPHER J. MCCLINTOCK, ARLENE M. EMBREY Trial Attorney Attorneys for Plaintiff
STIPULATION FOR CONSENT ORDER OF RECEIVERSHIP
Before this Court is the Complaint by the United States of America, on behalf of the United States Small Business Administration ("SBA"). for a permanent injunction, and the appointment of the SBA as Permanent Receiver for Red Rock Ventures - SBIC III. I.P. pursuant to 15 U.S.C. § 687c. The Court, pursuant to a stipulation for a consent order presented by the parties, finds that this relief should be granted:
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT;
1. Pursuant to the provisions of 15 U.S.C. § 687c. this Court shall take exclusive jurisdiction of Red Rock Ventures - SBIC III. L.P. (hereinafter "Red Rock III") and all of its assets, wherever located, and the United States Small Business Administration ("SBA"). is hereby appointed receiver ("the Receiver") of Red Rock III to serve without bond until further order of this Court. The Receiver is appointed for the purpose of administering, marshaling and liquidating all of Red Rock Ill's assets to satisfy the claims of creditors therefrom in the order of priority to be determined by this Court.
2. The Receiver shall have all powers, authorities, rights and privileges heretofore possessed by the general partners, limited partners, managers, officers, directors and agents of Red Rock HI under applicable stale and federal law and by the Agreement of Limited Partnership of said limited partnership, in addition to all powers and authority conferred upon the Receiver by the provisions of 15 U.S.C. § 687c and 28 U.S.C. § 754. The general partners, managers, directors, officers, employees and agents of Red Rock III are hereby dismissed. Such persons shall have no authority with respect to Red Rock Ill's operations or assets, except as may hereafter be expressly granted by the Receiver. The Receiver shall assume and control the operation of Red Rock III and shall pursue and preserve all of its claims.
3. The past and/or present officers, directors, agents, managers, general partners, accountants, attorneys and employees of Red Rock III. as well as all those acting in their place, are hereby ordered and directed to turn over to the Receiver forthwith all books, records, documents, accounts and all other instruments and papers of said partnership and all other assets and property of the partnership, whether real or personal. Red Rock Ill's general partner. RRV Partners I1IA. LLC;, shall furnish a written statement within five (5) days after the entry of this Order. listing the identity. location and estimated value of all assets of Red Rock III as well as the names, addresses and amounts of claims of all known creditors of Red Rock III. All persons having control, custody or possession of any assets or property of Red Rock III, including its General Partner, are hereby directed to turn such property over to the Receiver.
4. The Receiver shall promptly give notice of its appointment to all known officers, directors, agents, managers, general partners, employees, limited partners, creditors, debtors and agents of Red Rock 111. All persons and entities owing any obligations or debts to Red Rock 111 shall, until further order of this Court, pay all such obligations in accordance with the terms thereof to the Receiver, and its receipt for such payments shall have the same force and effect as if Red Rock III had received such payments.
5. The Receiver is hereby authorized to open such Receiver's bank accounts, at banking or other financial institutions, to extend credit on behalf of Red Rock III. to utilize SB A personnel, and to employ such other personnel as necessary to effectuate the operation of the receivership including, but not limited to. attorneys and accountants, and is further authorized to expend receivership hands to compensate such personnel in such amounts and upon such terms as the Receiver shall deem reasonable in light of the usual fees and billing practices and procedures of such personnel. The Receiver is not required to obtain Court approval prior to the disbursement of receivership funds for payments to personnel employed by the Receiver or payments for expenses incidental to administration of the Receivership. In addition, the Receiver is authorized to reimburse the SBA or its employees for travel expenses incurred by SBA personnel in the establishment and administration of the receivership. The Receiver may. without further order of this Court, transfer, compromise, or otherwise dispose of any claim or asset, other than real estate.
6. Red Rock Ill's past and/or present officers, directors, agents, managers, general partners, limited partners, employees, and other appropriate persons (including, without limitation, the defendant's portfolio of small business concerns and banks or other financial institutions doing business with defendant and-'or defendant's portfolio of small business concerns) shall answer under oath, pursuant to a Receiver's Notice or Subpoena, to the Receiver. all questions which it may put to them regarding the business of said partnership, or any other matter relevant to the operation or administration of the receivership or the collection of funds due to Red Rock III. In the event that the Receiver deems it necessary to require the appearance of the aforementioned persons, the production of documents, information, or any other form of discovery concerning the assets, property or business assets of Red Rock III. or any other matter relevant to the operation or administration of the Receivership or the collection of funds due to Red Rock III, the Receiver shall direct notice for any such appearance by certified mail, and said persons shall appear and give answer to the Receiver, produce documents or submit to any other form of discovery in accordance with the Federal Rules of Civil Procedure.
7. The parties or prospective parties to any and all civil legal proceedings wherever located, including, but not limited to arbitration proceedings, bankruptcy or foreclosure actions, default proceedings, or any other proceedings involving (i) Red Rock III. (ii) any assets of Red Rock III. (iii) the Receiver for Red Rock III. or (iv) Red Rock III's present or past officers, directors, managers, or general partners (.including the managers, partners or members of such general partner) to the extent said civil legal proceedings involve any action taken by them while acting in their official capacity with Red Rock III, are enjoined from taking any action, including discovery, commencing or continuing any legal proceeding of any nature without further order of this Court.
8. All civil legal proceedings wherever located, including arbitration proceedings, foreclosure activities, bankruptcy actions, or default proceedings, but excluding the instant proceeding, involving (i) Red Rock III, (ii) any of assets of Red Rock III, (iii) the Receiver for Red Rock III or (iv) Red Rock Ill's present or past officers, directors, managers, or general partners (including the managers or members of such general partner) to the extent said civil legal proceedings involve any action taken in their official capacity for Red Rock III are stayed in their entirety, and all Courts having any jurisdiction thereof are enjoined from taking or permitting any action in such proceedings until further Order of this Court.
9. As to a cause of action accrued or accruing in favor of Red Rock III against a third person or party, any applicable statute of limitation is tolled to the extent allowed by applicable law during the period in which this injunction against ...