EX-99.1 2 ex991ior.htm EXHIBIT 99.1 Exhibit


UNITED STATES BANKRUPTCY COURT
 DISTRICT OF DELAWARE
 
 
 
In re Pacific Sunwear of California, Inc., et al.
Case No. 16-10882 (LSS)
                           Debtor
 
 
 
 
 
INITIAL MONTHLY OPERATING REPORT
File report and attachments with Court and submit copy to United States Trustee within 15 days after order for relief.
 
 
 
Certificates of insurance must name United States Trustee as a party to be notified in the event of policy cancellation.
Bank accounts and checks must bear the name of the debtor, the case number, and the designation "Debtor in Possession."
Examples of acceptable evidence of Debtor in Possession Bank accounts include voided checks, copy of bank deposit
agreement/certificate of authority, signature card, and/or corporate checking resolution.
 
 
 
 
 
Document
Explanation
REQUIRED DOCUMENTS
Attached
Attached
12-Month Cash Flow Projection (Form IR-1)
DIP Budget Attached
 
Certificates of Insurance:
 
 
     Workers Compensation
Attached
 
     Property
Attached
 
     General Liability
Attached
 
     Vehicle
Attached
 
     Other:____________________
 
 
     Identify areas of self-insurance w/liability caps
 
 
Evidence of Debtor in Possession Bank Accounts
 
 
    Tax Escrow Account
Cash Management Order Attached
 
    General Operating Account
Cash Management Order Attached
 
    Money Market Account pursuant to Local Rule 4001-3. Refer to
Cash Management Order Attached
 
    http://www.deb.uscourts.gov/
 
 
    Other:_________________________________
 
 
Retainers Paid (Form IR-2)
Attached
 
 
 
 
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached
are true and correct to the best of my knowledge and belief.
 
 
 
 
 
/s/ Christopher R. Tedford
4/21/2016
Signature of Debtor
Date
 
 
 
 
/s/ Christopher R. Tedford
4/21/2016
Signature of Joint Debtor
Date
 
 
 
 
/s/ Christopher R. Tedford
4/21/2016
Signature of Authorized Individual*
Date
 
 
 
 
Christopher R. Tedford
VP and Interim Chief Financial Officer
Printed Name of Authorized Individual
Title of Authorized Individual
 
 
 
*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor
is a partnership; a manager or member if debtor is a limited liability company.
 
 




Project Surf
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flow Forecast
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in 000's)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4-5-4 Month
 
Apr
Apr
Apr
May
May
May
May
Jun
Jun
Jun
Jun
Jun
Jul
 
 
 
 
Week Ending
 
16-Apr
23-Apr
30-Apr
7-May
14-May
21-May
28-May
4-Jun
11-Jun
18-Jun
25-Jun
2-Jul
9-Jul
 
 
 
 
Fiscal Week
 
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
Week 11
Week 12
Week 13
 
13 Week
 
 
Forecast / Actual
 
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
I. CASH FLOW
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Receipts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1)
 
Sales Receipts
 
    13,626
    13,399
    11,022
    11,189
    11,935
    13,899
    15,640
    15,527
    15,730
    15,458
    15,588
    16,704
    15,396
 
       185,111

2)
 
Other Receipts
 
0
0
0
0
0
0
0
0
0
0
0
0
0
 
0

3)
 
Total Cash Receipts
 
    13,626
    13,399
    11,022
    11,189
    11,935
    13,899
    15,640
    15,527
    15,730
    15,458
    15,588
    16,704
    15,396
 
       185,111

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Disbursements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4)
 
Merchandise Vendor Payments
 
     (3,216)
     (6,623)
     (6,159)
     (6,160)
     (5,988)
     (4,072)
     (6,362)
     (5,258)
     (9,366)
     (5,638)
     (8,183)
     (7,815)
   (11,566)
 
(86,407
)
5)
 
Payroll, Payroll Taxes, and Benefits
 
        (450)
     (5,315)
        (250)
     (5,422)
        (250)
     (5,422)
        (250)
     (5,513)
        (200)
     (5,513)
        (200)
     (5,513)
        (250)
 
(34,549
)
6)
 
Rent and Occupancy
 
0
0
0
   (11,275)
0
0
0
   (11,595)
0
0
0
0
   (10,012)
 
(32,882
)
7)
 
Freight & Customs
 
        (325)
        (807)
        (334)
        (265)
        (217)
     (2,715)
        (266)
        (243)
        (209)
        (387)
     (2,076)
        (342)
        (395)
 
(8,579
)
8)
 
Capital Expenditures
 
0
        (546)
        (546)
        (820)
        (820)
        (275)
        (275)
        (487)
        (487)
        (487)
        (487)
        (487)
        (330)
 
(6,046
)
9)
 
Sales Tax Remittance
 
        (254)
     (2,153)
     (1,318)
        (351)
        (174)
     (1,474)
        (902)
          (79)
        (109)
        (506)
     (2,035)
        (409)
        (549)
 
(10,312
)
10)
 
Store Advertising
 
        (439)
          (74)
        (140)
        (722)
        (276)
        (177)
        (143)
        (267)
        (371)
        (149)
        (180)
        (143)
        (414)
 
(3,495
)
11)
 
Other Disbursements
 
     (2,500)
     (2,078)
     (1,225)
     (1,426)
     (1,162)
     (1,012)
     (1,152)
     (1,011)
     (1,903)
     (1,008)
     (1,048)
        (937)
     (1,037)
 
(17,500
)
12)
 
Total Operating Disbursements
 
     (7,183)
   (17,596)
     (9,971)
   (26,441)
     (8,887)
   (15,147)
     (9,350)
   (24,454)
   (12,645)
   (13,689)
   (14,208)
   (15,646)
   (24,554)
 
(199,771
)
 
 
Financing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13)
 
Revolver Interest
 
0
0
0
          (89)
0
0
0
        (120)
0
0
0
0
        (157)
 
(366
)
14)
 
Other Interest and Fees
 
     (1,000)
0
     (1,759)
0
0
0
        (216)
0
0
0
        (216)
0
0
 
(3,191
)
15)
 
Total Financing Disbursements
 
     (1,000)
0
     (1,759)
          (89)
0
0
        (216)
        (120)
0
0
        (216)
0
        (157)
 
(3,557
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 11 Disbursements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16)
 
Indemnification Escrow Funding
 
        (500)
0
0
0
0
0
0
0
0
0
0
0
0
 
(500
)
17)
 
Credit Card Holdback
 
0
0
0
0
0
0
0
0
0
0
0
0
0
 
0

18)
 
Utility Deposits
 
0
0
        (500)
0
0
0
0
0
0
0
0
0
0
 
(500
)
19)
 
Professional Fees / Retainers
 
0
0
0
0
0
0
0
0
0
0
     (1,318)
0
0
 
(1,318
)
20)
 
Total Chapter 11 Disbursements
 
        (500)
0
        (500)
0
0
0
0
0
0
0
     (1,318)
0
0
 
(2,318
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21)
 
Total Disbursements
 
     (8,683)
   (17,596)
   (12,230)
   (26,530)
     (8,887)
   (15,147)
     (9,566)
   (24,573)
   (12,645)
   (13,689)
   (15,743)
   (15,646)
   (24,712)
 
(205,647
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22)
 
Net Cash Flow Before Borrowing/(Pay down)
 
      4,943
     (4,197)
     (1,208)
   (15,341)
      3,048
     (1,248)
      6,074
     (9,047)
      3,085
      1,769
        (154)
      1,058
     (9,316)
 
(20,536
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23)
 
Starting Est. Book Available Cash
 
      1,430
         872
      1,675
      1,467
     (3,874)
      1,673
      1,426
         999
     (4,047)
      1,537
      1,306
      1,152
      1,210
 
           1,430

24)
 
Add: Net Cash Flow Before Borrowings
 
      4,943
     (4,197)
     (1,208)
   (15,341)
      3,048
     (1,248)
      6,074
     (9,047)
      3,085
      1,769
        (154)
      1,058
     (9,316)
 
(20,536
)
25)
 
Revolver Principal Borrowings / (Pay downs)
 
     (5,500)
      5,000
      1,000
    10,000
      2,500
      1,000
     (6,500)
      4,000
      2,500
     (2,000)
0
     (1,000)
      4,500
 
         15,500

26)
 
Adjustment for Voided Checks
 
0
0
0
0
0
0
0
0
0
0
0
0
0
 
0

27)
 
Ending Est. Book Available Cash
 
         872
      1,675
      1,467
     (3,874)
      1,673
      1,426
         999
     (4,047)
      1,537
      1,306
      1,152
      1,210
     (3,606)
 
(3,606
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28)
 
Add: Est. Outstanding Checks
 
         150
         150
         150
      5,788
         150
         150
         150
      5,948
         150
         150
         150
         150
      5,156
 
           5,156

29)
 
Ending Est. Bank Available Cash
 
      1,022
      1,825
      1,617
      1,913
      1,823
      1,576
      1,149
      1,900
      1,687
      1,456
      1,302
      1,360
      1,550
 
           1,550

 
 
II. FINANCING
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30)
 
Pre-Petition ABL Beginning Balance
 
    29,000
    15,374
      1,975
0
0
0
0
0
0
0
0
0
0
 
         29,000

31)
 
Cash Receipts
 
   (13,626)
   (13,399)
     (1,975)
0
0
0
0
0
0
0
0
0
0
 
(29,000
)
32)
 
Ending Pre-Petition Revolver Balance
 
    15,374
      1,975
0
0
0
0
0
0
0
0
0
0
0
 
0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
33)
 
DIP Revolver Beginning Balance
 
0
      8,126
    26,525
    29,500
    39,500
    42,000
    43,000
    36,500
    40,500
    43,000
    41,000
    41,000
    40,000
 
0

33)
 
Cash Receipts
 
0
0
     (9,046)
   (11,189)
   (11,935)
   (13,899)
   (15,640)
   (15,527)
   (15,730)
   (15,458)
   (15,588)
   (16,704)
   (15,396)
 
      (156,111)

34)
 
Cash Disbursements (book)
 
      8,683
    17,596
    12,230
    26,530
      8,887
    15,147
      9,566
    24,573
    12,645
    13,689
    15,743
    15,646
    24,712
 
       205,647

34)
 
Change in Bank Cash
 
        (407)
         803
        (208)
         296
          (90)
        (248)
        (426)
         751
        (213)
        (231)
        (154)
           58
         190
 
              120

35)
 
Change in Check Float
 
        (150)
0
0
     (5,638)
      5,638
0
0
     (5,798)
      5,798
0
0
0
     (5,006)
 
(5,156
)
35)
 
Ending DIP Revolver Balance - Funded
 
      8,126
    26,525
    29,500
    39,500
    42,000
    43,000
    36,500
    40,500
    43,000
    41,000
    41,000
    40,000
    44,500
 
         44,500

36)
 
Add: LCs and Accrued Interest
 
      9,549
      9,567
      9,589
      9,523
      9,554
      9,586
    10,620
    10,528
    10,560
    10,593
    10,625
    10,657
    10,531
 
         10,531

37)
 
Ending DIP Revolver Balance - Total
 
    17,675
    36,092
    39,089
    49,023
    51,554
    52,586
    47,120
    51,028
    53,560
    51,593
    51,625
    50,657
    55,031
 
         55,031

 
 
III. AVAILABILITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
38)
 
Gross Remaining Availability
 
    34,802
    26,983
    30,562
    18,741
    17,099
    15,720
    19,856
    20,856
    16,062
    18,078
    19,930
    24,750
    16,505
 
         16,505

39)
 
Less: Minimum Availability Covenant
 
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,500)
     (7,541)
     (7,500)
 
(7,500
)
40)
 
Total Availability (excl Block)
 
    27,302
    19,483
    23,062
    11,241
      9,599
      8,220
    12,356
    13,356
      8,562
    10,578
    12,430
    17,210
      9,005
 
           9,005

41)
 
Ending Est. Bank Available Cash
 
      1,022
      1,825
      1,617
      1,913
      1,823
      1,576
      1,149
      1,900
      1,687
      1,456
      1,302
      1,360
      1,550
 
           1,550

42)
 
Total Liquidity / (Additional Financing Need)
 
    28,324
    21,308
    24,679
    13,154
    11,422
      9,796
    13,506
    15,256
    10,250
    12,034
    13,732
    18,569
    10,555
 
         10,555

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
43)
 
Consolidated Pro Fee Roll Forward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
44)
 
Beginning Balance
 
0
         985
      1,539
      2,093
      2,657
      3,195
      3,733
      4,271
      4,731
      5,192
      5,652
      4,794
      5,254
 
0

45)
 
Accruals - Case Professionals
 
         864
         433
         433
         470
         443
         443
         443
         382
         382
         382
         382
         382
         428
 
           5,868

46)
 
Accruals - Other Professionals
 
         121
         121
         121
           95
           95
           95
           95
           78
           78
           78
           78
           78
           95
 
           1,227

47)
 
Payments - Case Professionals
 
0
0
0
0
0
0
0
0
0
0
     (1,024)
0
0
 
(1,024
)
48)
 
Payments - Other Professionals
 
0
0
0
0
0
0
0
0
0
0
        (295)
0
0
 
(295
)
49)
 
Ending Balance
 
         985
      1,539
      2,093
      2,657
      3,195
      3,733
      4,271
      4,731
      5,192
      5,652
      4,794
      5,254
      5,777
 
           5,777





Pacific Sunwear of California, Inc.
 
 
Insurance Policies
 
 
 
 
 
 
 
 
 
 
#
Cert Document
Last 4 Digits
Carrier
Type
Broker
1
1
0004
Ace American Insurance Co.
Foreign Commercial
Marsh
 
 
 
 
 
 
2
2
0201
Lloyd’s
Cyber Security and Privacy
Marsh
3
2
7011
ACE American Insurance Co.
Commercial Crime
Marsh
4
2
8408
Travelers Casualty and Surety Co. of America
Fiduciary
Marsh
 
 
 
 
 
 
5
3
3613
Safety National Casualty Corp.
General Liability
Marsh
6
3
3616
Safety National Casualty Corp.
Commercial Auto
Marsh
7
3
2485
Fireman’s Fund Insurance Co.
Umbrella
Marsh
8
3
3615
Safety National Casualty Corp.
Workers’ Compensation
Marsh
 
 
 
 
 
 
9
4
X051
AFM
All-Risk Property
Marsh
 
 
 
 
 
 
10
5
0900
AGCS Marine Insurance Co.
Marine Cargo
Marsh
 
 
 
 
 
 
11
6
0999
Continental Casualty Co.
D&O
Woodruff
12
6
9300
Endurance Risk Solutions Assurance Co.
D&O
Woodruff
13
6
6865
National Union Fire Insurance Co. of Pittsburgh, PA
D&O
Woodruff
14
6
4671
Berkley Insurance Co.
D&O
Woodruff
15
6
3115
Hudson Insurance Co.
D&O
Woodruff
16
6
4587
Federal Insurance Co.
D&O
Woodruff
17
6
7057
National Union Fire Insurance Co. of Pittsburgh, PA
D&O
Woodruff
 
 
 
 
 
 
18
7
2188
The Princeton Excess and Surplus Lines Insurance Co.
Difference in Condition
Marsh
 
 
 
 
 
 
 
 
 
 
 
 
Certificates of Insurance for the listed policies have been provided to the United States Trustee and will be made available upon reasonable request.






UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE



In re

PACIFIC SUNWEAR OF CALIFORNIA, INC., a California corporation, et al., 1

Debtors.
 
Chapter 11

Case No.: 16-10882 (LSS)

(Jointly Administered)

Re Docket No. 6

ORDER (I) AUTHORIZING CONTINUED USE OF CASH MANAGEMENT SYSTEM, (II) AUTHORIZING THE CONTINUATION OF INTERCOMPANY TRANSACTIONS, (III) GRANTING ADMINISTRATIVE PRIORITY STATUS TO POSTPETITION INTERCOMPANY TRANSACTIONS, (IV) AUTHORIZING USE OF PREPETITION BANK ACCOUNTS, ACCOUNT CONTROL AGREEMENT, AND CERTAIN PAYMENT METHODS, AND (V) WAIVING THE REQUIREMENTS OF
11 U.S.C. § 345(b) ON AN INTERIM BASIS

Upon the motion (the “Motion”)2 of Pacific Sunwear of California, Inc., Miraloma Borrower Corporation (“Miraloma”), and Pacific Sunwear Stores Corp. (“PacSun Stores”), the debtors and debtors in possession (the “Debtors”) in the above-captioned chapter 11 cases (the “Cases”), for entry of an order, pursuant to sections 105, 345, 363, 364(b), and 503(b) of title 11 of the United States Code, 11 U.S.C. §§ 101-1532 (the “Bankruptcy Code”), Rules 6003 and 6004 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) and Rule 2015-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the “Local Rules”), (i) authorizing the Debtors’ continued use of their existing cash management system, (ii) authorizing the continuation of intercompany transactions, (iii) granting administrative priority status to postpetition intercompany transactions, (iv) authorizing the Debtors to continue using prepetition bank accounts and account control
___________________________
1 
The Debtors and the last four digits of their respective federal taxpayer identification numbers are as follows: Pacific Sunwear of California, Inc. (9463-CA); Miraloma Borrower Corporation (0381-Del.); and Pacific Sunwear Stores Corp. (5792-CA). The Debtors’ address is 3450 East Miraloma Avenue, Anaheim, CA 92806.
2 
Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Motion.




agreements and using debit, wire, and ACH payments, and (v) waiving the requirements of 11 U.S.C. § 345(b) on an interim basis; and upon consideration of the Schoenfeld Declaration and the Tedford Declaration and the record of these chapter 11 Cases; and it appearing that the Court has jurisdiction to consider the Motion pursuant to 28 U.S.C. §§ 1334 and 157, and the Amended Standing Order of Reference from the United States District Court for the District of Delaware dated February 29, 2012; and it appearing that the Motion is a core matter pursuant to 28 U.S.C. § 157(b)(2) and that the Court may enter a final order consistent with Article III of the United States Constitution; and it appearing that venue of these cases and of the Motion is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and it appearing that due and adequate notice of the Motion has been given under the circumstances, and that no other or further notice need be given; and it appearing that the relief requested in the Motion is in the best interests of the Debtors’ estates, their creditors, and other parties in interest; and after due deliberation, and good and sufficient cause appearing therefor, it is hereby
ORDERED, ADJUDGED, AND DECREED THAT:
1.The Motion is GRANTED, as set forth herein.
2.Except as otherwise set forth herein, the Debtors are authorized, in their sole discretion, to: (i) continue operating the Cash Management System; (ii) continue making Intercompany Transactions between the Debtors in the ordinary course of business; (iii) maintain existing Bank Accounts and business forms; (iv) maintain the ability to use debit, wire, and ACH payments; and (v) continue to deposit funds in accordance with their current practices.
3.The Debtors shall maintain accurate and detailed records in the ordinary course of business reflecting transfers, including but not limited to Intercompany Transactions, so as to permit all such transactions to be readily ascertained, traced, recorded, and properly distinguished between prepetition and post-petition transactions. Unless otherwise ordered by the Court, all intercompany claims between Debtors arising after the Petition Date shall be accorded administrative expense priority in accordance with sections 503(b) and 507(a)(2) of the Bankruptcy Code.




4.The Debtors are further authorized, in their sole discretion, to: (i) continue to use, with the same account numbers, all of the Bank Accounts in existence as of the Petition Date identified on Exhibits B and C to the Motion; (ii) treat the Bank Accounts for all purposes as accounts of the Debtors as debtors-in-possession; (iii) deposit funds in and withdraw funds from the Bank Accounts by all usual means, including checks, wire transfers, ACH payments, and other debits; and (iv) pay any ordinary course prepetition or postpetition bank fees incurred in connection with the Bank Accounts, and to otherwise perform their obligations under the documents governing the Bank Accounts.
5.All Banks at which the Bank Accounts are maintained are authorized to continue to maintain, service, and administer the Bank Accounts as accounts of debtors in possession, without interruption and in the ordinary course of business. In this regard, the Banks are authorized to receive, process, honor, and pay any and all checks, ACH payments, and other instructions, and drafts payable through, drawn, or directed on the Bank Accounts after the Petition Date by holders, makers, or other parties entitled to issue instructions with respect thereto.
6.All Banks provided with notice of this Order maintaining any of the Bank Accounts shall not honor or pay any bank payments drawn on the listed Bank Accounts or otherwise issued before the Petition Date for which the Debtors specifically issue stop payment orders in accordance with the documents governing such Bank Accounts.
7.The Deposit Account Control Agreements shall be maintained and shall continue to govern the postpetition cash management relationship between the Debtors and the banks party thereto, and all of the provisions of such agreements, including, without limitation, the termination and fee provisions, shall remain in full force and effect, and the Debtors, the secured parties thereto, or the banks party thereto may, without further Order of this Court, implement non-material changes to the cash management systems and procedures in the ordinary course of business pursuant to terms of those certain existing Deposit Account Control Agreements; provided, however, that nothing contained herein shall constitute an assumption of the Deposit Account Control Agreements pursuant to section 365 of the Bankruptcy Code.




8.For any accounts that are not subject to a Deposit Account Control Agreement, those certain existing deposit agreements between the Debtors and the depository and disbursement banks party thereto shall continue to govern the postpetition cash management relationship between the Debtors and the bank party thereto, and all of the provisions of such agreements, including, without limitation, the termination and fee provisions, shall remain in full force and effect. Either the Debtors or the banks party thereto may, without further order of the Court, implement non-material changes to the cash management systems and procedures in the ordinary course of business pursuant to the terms of those certain existing deposit agreements.
9.The Debtors are authorized to continue to use the commercial card program under the WellsOne Commercial Card Agreement, dated as of January 10, 2012 (as amended, restated, supplemented, or otherwise modified from time to time, the “Card Agreement”), between the Debtors and Wells Fargo, subject to the terms and conditions thereof; provided, however, that nothing contained herein shall constitute an assumption of the Deposit Account Control Agreements pursuant to section 365 of the Bankruptcy Code.  Wells Fargo is authorized to make advances from time to time to Debtors with a maximum exposure at any time up to $1,900,000. All prepetition charges and fees are authorized and required to be paid. Wells Fargo may rely on the representations of Debtors with respect to their use of the commercial card program pursuant to the Card Agreement, and Wells Fargo shall not have any liability to any party for relying on such representations by the Debtors as provided for herein.
10.In the course of providing cash management services to the Debtors, any Bank, without further order of this Court, is authorized to (i) charge, and the Debtors are authorized to pay or honor, both prepetition and postpetition service and other fees, costs, charges, and expenses to which the Banks are entitled under the terms and in accordance with their contractual arrangements with the Debtors, and (ii) charge back returned items to the Bank Accounts, whether such items are dated before, on, or after the Petition Date, in the ordinary course of business during the pendency of these Cases.




11.Notwithstanding any other provision of this Order, any Bank may rely on the representations of the Debtors with respect to whether any check, draft, wire, or other transfer drawn or issued by the Debtors before the Petition Date should be honored pursuant to any order of this Court, and any Bank that honors a prepetition check or other item drawn on any account that is the subject of this Order (i) at the direction of the Debtors, (ii) in a good faith belief that the Court has authorized such prepetition check or item to be honored, or (iii) as a result of an innocent mistake made despite the above-described protective measures, shall neither be deemed to be in violation of this Order nor be liable to the Debtors or their estates on their account of such prepetition check or other item being honored postpetition, or otherwise deemed to be in violation of this Order. Such Banks shall not have any liability to any party for relying on such representations by the Debtors.
12.Any Banks are further authorized to accept and hold the Debtors’ funds in accordance with the Debtors’ instructions; provided, in each case, that the Debtors’ Banks shall not have any liability to any party for relying on such representations.
13.For banks at which the Debtors hold bank accounts that are party to a Uniform Depository agreement with the Office of the United States Trustee for the District of Delaware, within fifteen (15) days of the date of entry of this Order the Debtors shall (i) contact each bank, (ii) provide the bank with each of the Debtors' employer identification numbers, and (iii) identify each of their bank accounts held at such banks as being held by a debtor in possession in a bankruptcy case and provide the case numbers.
14.For banks at which the Debtors hold accounts that are not party to a Uniform Depository Agreement with the Office of the United States Trustee for the District of Delaware, the Debtors shall use their good-faith efforts to cause the banks to execute a Uniform Depository Agreement in a form prescribed by the Office of the United States Trustee within forty-five (45) days of the date of this Order. The U.S. Trustee’s rights to seek further relief from this Court on notice in the event that the aforementioned banks are unwilling to execute a Uniform Depository Agreement in a form prescribed by the U.S. Trustee are fully reserved.




15.The Debtors are authorized to use their existing check stock; provided, however, provided that once the Debtors’ existing checks have been used, the Debtors shall, when reordering checks, require the designation “Debtor in Possession” and the corresponding bankruptcy case number on all checks; provided further that, with respect to checks which the Debtors or their agents print themselves, the Debtors shall begin printing the “Debtor in Possession” legend and the bankruptcy case number on such items within ten (10) days of the date of entry of this Order.
16.The requirements of section 345(b) of the Bankruptcy Code are waived on an interim basis for a period of thirty (30) days from the Petition Date, without prejudice to the Debtors’ right to seek a further waiver.
17.Notwithstanding anything contained herein, despite the Debtors’ use of a consolidated Cash Management System, the Debtors shall calculate quarterly fees under 28 U.S.C. § 1930(a)(6) based on the disbursements attributable to each Debtor, even if one Debtor pays certain disbursements on behalf of the other Debtors.
18.Each of the Debtors’ Banks is authorized to debit the Debtors’ accounts in the ordinary course of business without the need for further order of this Court for: (i) all checks drawn on the Debtors’ accounts which are cashed at such Bank’s counters or exchanged for cashier’s checks by the payees thereof prior to the Petition Date; (ii) all checks or other items deposited in one of Debtors’ accounts with such Bank prior to the Petition Date which have been dishonored or returned unpaid for any reason, together with any fees and costs in connection therewith, to the same extent the Debtors were responsible for such items prior to the Petition Date; and (iii) all undisputed prepetition amounts outstanding as of the date hereof, if any, owed to any Bank as service charges for the maintenance of the Cash Management System.
19.Nothing contained herein shall prevent the Debtors from closing any Bank Account(s) or opening any additional bank accounts, as they may deem necessary and appropriate; provided, that any such additional bank accounts may be opened only with banks that are party to a Uniform Depository




Agreement. Any relevant bank is authorized to honor the Debtors’ requests to close or open such Bank Accounts or additional bank accounts, as the case may be; provided, that, notice of the opening or closure of any account shall be given within fifteen (15) days to the U.S. Trustee and any statutory committee appointed in these Cases as soon as practicable.
20.Notwithstanding the relief granted herein and any actions taken hereunder, nothing contained in the Motion or this Order shall constitute, nor is it intended to constitute, an admission as to the validity or priority of any claim or lien against the Debtors or a waiver of the Debtors’ rights to dispute any claim or lien, a promise to pay any claim, or the assumption of any agreement pursuant to section 365 of the Bankruptcy Code.
21.Notwithstanding anything to the contrary contained herein, any payment made or to be made under this Order, any authorization contained in this Order, or any claim for which payment is authorized hereunder, shall be subject to the requirements imposed on the Debtors under any orders of this Court approving any debtor in possession financing for, or any use of cash collateral by, the Debtors (such order, the “DIP Order”) and any budget in connection therewith.
22.Bankruptcy Rule 6003(b) has been satisfied because the relief requested in the Motion is necessary to avoid immediate and irreparable harm to the Debtors. The requirements of Bankruptcy Rule 6004(a) are waived under the circumstances.
23.Notwithstanding any provision in the Bankruptcy Rules to the contrary: (i) this Order shall be effective immediately and enforceable upon its entry; (ii) the Debtors are not subject to any stay in the implementation, enforcement, or realization of the relief granted in this order; and (iii) the Debtors are authorized and empowered, and may in their discretion and without further delay, take any action necessary or appropriate to implement this Order.
24.As soon as practicable after entry of this Order, the Debtors will serve a copy of this Order to the Banks at which the Bank Accounts are maintained and will request that each Bank internally code each of the Bank Accounts as “debtor in possession” accounts.




25.The Court retains jurisdiction and power with respect to all matters arising from or related to the implementation or interpretation of this Order.


Dated:    April 8, 2016
Wilmington, Delaware

/s/ Laurie Selber Silverstein
LAURIE SELBER SILVERSTEIN
UNITED STATES BANKRUPTCY JUDGE






Last 4 Digits of Account #
Bank Name
Account Name
Account Type
8615
Wells Fargo
Pacific Sunwear of California, Inc.
Master Operating Account
1892
Wells Fargo
Pacific Sunwear Stores Corp.
Store Depository Account
2310
Wells Fargo
Pacific Sunwear of California, Inc.
PacSun Depository Account
7348
Wells Fargo
Pacific Sunwear of California, Inc.
Controlled Disbursement Account
7333
Wells Fargo
Pacific Sunwear Stores Corp.
Controlled Disbursement Account
2351
Wells Fargo
Pacific Sunwear of California, Inc.
Corp. Payroll Disbursement Account
2344
Wells Fargo
Pacific Sunwear Stores Corp.
Store Payroll Disbursement Account
2377
Wells Fargo
Pacific Sunwear Stores Corp.
Store Flex Spending Disbursement Account
2385
Wells Fargo
Pacific Sunwear of California, Inc.
Corp Flex Spending Disbursement Account
7297
Wells Fargo
Pacific Sunwear of California, Inc.
Benefits, AETNA Disbursement Account
2419
Wells Fargo
Pacific Sunwear Stores Corp.
PacSun.com E-Commerce Account
2336
Wells Fargo
Pacific Sunwear Stores Corp.
Amex Credit Card Account
2435
Wells Fargo
Pacific Sunwear Stores Corp.
Paypal E-Commerce Account
3423
Wells Fargo
Pacific Sunwear Stores Corp.
V. Me E-Commerce Account
2427
Wells Fargo
Pacific Sunwear Stores Corp.
Private Label Account
2393
Wells Fargo
Pacific Sunwear Stores Corp.
Amex Intel. Credit Card Account
2328
Wells Fargo
Pacific Sunwear Stores Corp.
Visa/MC Credit Card Account
2401
Wells Fargo
Pacific Sunwear Stores Corp.
Discover Credit Card Account
2329
J.P. Morgan Chase
Pacific Sunwear Stores Corp.
Store Depository Account
3117
PNC Bank
Pacific Sunwear Stores Corp.
Store Depository Account
2667
US Bank
Pacific Sunwear Stores Corp.
Store Depository Account
7527
Regions Bank
Pacific Sunwear Stores Corp.
Store Depository Account
3071
Key Bank Of New York
Pacific Sunwear Stores Corp.
Store Depository Account
2954
Banco Popular
Pacific Sunwear Stores Corp.
Store Depository Account
4139
American Savings
Pacific Sunwear Stores Corp.
Store Depository Account
1563
M & T Bank
Pacific Sunwear Stores Corp.
Store Depository Account
4201
Queenstown Bank
Pacific Sunwear Stores Corp.
Store Depository Account
3190
Citizens Bank
Pacific Sunwear Stores Corp.
Store Depository Account
5554
Bank Of America
Pacific Sunwear Stores Corp.
Sales Tax Payments Disbursement Account
2662
PNC Bank
Pacific Sunwear Stores Corp.
Return Check Concentration Account
4431
PNC Bank
Pacific Sunwear Stores Corp.
ACH - Utility Payments Disbursement Account






In re Pacific Sunwear of California, Inc., et al.
 
Case No. 16-10882 (LSS)
Debtor
 
 
 
 
 
 
 
SCHEDULE OF RETAINERS PAID TO PROFESSIONALS
(This schedule is to include each Professional paid a retainer)
 
 
 
 
Name of Payee
Name of Payor
Initial Amount
Current Balance
Klee, Tuchin, Bogdanoff & Stern, LLP
Pacific Sunwear of California, Inc.
150,000
Unknown
Young Conaway Stargatt & Taylor, LLP [1]
Pacific Sunwear of California, Inc.
65,151
Unknown
Guggenheim Partners, LLC [2]
Pacific Sunwear of California, Inc.
150,000
Unknown
FTI Consulting
Pacific Sunwear of California, Inc.
50,000
Unknown
Sard Verbinnen & Co
Pacific Sunwear of California, Inc.
50,000
Unknown
Prime Clerk
Pacific Sunwear of California, Inc.
25,000
Unknown
Kirkland & Ellis LLP
Pacific Sunwear of California, Inc.
125,000
Unknown
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[1] Evergreen Retainer.
 
 
 
[2] Represents monthly prepayment for the following month's services. Amount shown covers services through April 15.