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UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION In re: PEREGRINE FINANCIAL GROUP, INC., ) ) ) ) ) ) ) Chapter 7 Case No. 12-27488 Honorable Judge Carol A. Doyle Hearing Date: September 6, 2012 Hearing Time: 10:00 a.m.

Debtor.

NOTICE OF MOTION PLEASE TAKE NOTICE that on September 6, 2012 at 10:00 a.m., the undersigned shall appear before the Honorable Carol A. Doyle, United States Bankruptcy Judge for the United States Bankruptcy Court, Northern District of Illinois, Eastern Division, in Courtroom 742 of the Dirksen Federal Building, 219 South Dearborn Street, Chicago, Illinois 60604, and then and there present the TRUSTEE'S APPLICATION FOR AN ORDER PURSUANT TO SECTION 365(d)(1) OF THE BANKRUPTCY CODE EXTENDING THE TIME WITHIN WHICH THE TRUSTEE MAY ASSUME OR REJECT EXECUTORY CONTRACTS AND UNEXPIRED LEASES, at which time you may appear and be heard. Dated: August 30, 2012 Respectfully submitted, Ira Bodenstein, not personally, but as chapter 7 trustee for the estate of Peregrine Financial Group, Inc. By: Robert M. Fishman (#3124316) Salvatore Barbatano (#0109681) Kimberly Bacher (#6285677) Shaw Gussis Fishman Glantz Wolfson & Towbin LLC 321 North Clark Street, Suite 800 Chicago, IL 60654 Phone: (312) 541-0151 Fax: (312) 980-3888 /s/ Kimberly Bacher One of his proposed attorneys

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UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION In re: PEREGRINE FINANCIAL GROUP, INC., ) ) ) ) ) ) ) Chapter 7 Case No. 12-27488 Honorable Judge Carol A. Doyle Hearing Date: September 6, 2012 Hearing Time: 10:00 a.m.

Debtor.

TRUSTEE'S APPLICATION FOR AN ORDER PURSUANT TO SECTION 365(d)(1) OF THE BANKRUPTCY CODE EXTENDING THE TIME WITHIN WHICH THE TRUSTEE MAY ASSUME OR REJECT EXECUTORY CONTRACTS AND UNEXPIRED LEASES Ira Bodenstein, not personally, but as chapter 7 trustee (the Trustee) for the estate of Peregrine Financial Group, Inc. d/b/a PFG Best (the Debtor), by and through his undersigned counsel, hereby requests the entry of an order pursuant to section 365(d)(1) of the Bankruptcy Code (the Motion) extending the time within which the Trustee may assume or reject executory contracts and unexpired leases on behalf of the Debtors estate until January 10, 2013. In support of this Motion, the Trustee respectfully represents as follows: INTRODUCTION 1. On July 10, 2012 (Petition Date), the Debtor filed a voluntary petition for relief

under chapter 7 of the Bankruptcy Code, 11 U.S.C. 101, et. seq. Ira Bodenstein is the duly appointed chapter 7 trustee of the Debtors estate. On July 13, 2012, the Court entered an order authorizing the Trustee to operate the Debtors business and pay employee obligations pursuant to 11 U.S.C. 721. 2. This Court has jurisdiction to hear this matter and enter a final order granting the

relief requested herein pursuant to 28 U.S.C. 157 and 1334 and Internal Operating Procedure 15(a) of the United States District Court for the Northern District of Illinois. Venue is proper in

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this District pursuant to 28 U.S.C. 1408 and 1409. 3. Prior to the Petition Date, the United States Commodity Futures Trading

Commission (CFTC) filed a lawsuit in the United States District Court for the Northern District of Illinois (District Court) alleging that the Debtor and its founder, Russell Wasendorf Sr., committed fraud, customer-funds violations and made false statements (Lawsuit). In connection with the Lawsuit, on July 10, 2012, the District Court entered an Order Appointing a Temporary Receiver. Shortly thereafter, the Debtor commenced the Case commodity broker liquidation under subchapter IV of chapter 7 of the Bankruptcy Code. 4. The Debtors bankruptcy petition reflects that its assets total approximately $500

million to $1 billion and that its liabilities total approximately $100 million to $500 million. RELIEF REQUESTED 5. By this Motion, the Trustee seeks an extension of the time within which the

Trustee may assume, assign, or reject executory contracts and unexpired leases as provided in section 365(d)(1) of the Bankruptcy Code, for a period of four months (120 days) to and including January 10, 2013. Such an extension would be without prejudice to the right of the Trustee to seek a further extension. Likewise, such an extension would be without prejudice to the rights of any party-in-interest to seek to shorten the Trustee's time to assume or reject a particular executory contract or unexpired lease. BASIS FOR RELIEF REQUESTED 6. Section 365(d)(1) of the Bankruptcy Code grants a trustee an initial sixty (60) day

period to determine whether to assume or reject executory contracts and unexpired leases, unless such time is extended by Order of the Court. Section 365(d)(1) provides, in pertinent part: [I]n a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of

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residential real property or of personal property of the debtor within sixty (60) days after the order for relief, or within such additional time as the Court, for cause, within such sixty- day period, fixes, then such contract or lease is deemed rejected . . ." 11 U.S.C. 365(d)(1). 7. Accordingly, this Court has express authority, when appropriate cause is shown,

to extend the time within which the Trustee may assume or reject the Debtor's unexpired executory contracts and unexpired leases. See 11 U.S.C. 365(d)(1). Section 365 generally provides the trustee with the right to reject executory contracts, a power that serves to relieve the estate of contractual obligations that are unduly burdensome. Precision Indus., Inc. v. Qualitech Steel SBQ, LLC, 327 F.3d 537, 546 (7th Cir. 2003) (citing N.L.R.B. v. Bildisco & Bildisco, 465 U.S. 513, 528, 104 S.Ct. 1188, 1197, 79 L.Ed.2d 482 (1984)). 8. Section 365(d)(1) strikes a balance between the interest of the Trustee in liquidating

the estate in a commercially reasonable manner and the interests of the parties to the executory contracts and certain leases who may want a prompt resolution of their rights and remedies. See In re Telemark Mgmt. Co., Inc., 51 B.R. 623, 625-26 (Bankr. W.D. Wis. 1984) (finding that section 365(d)(1) permits an extension of the original extension where the initial extension proved to be "too short"). 9. It is in the best interest of the estate, its customers, and creditors to allow the

Trustee additional time to continue to determine whether the assumption or assignment of the Debtors executory contracts and unexpired leases would be beneficial to the estate and further the purposes of the liquidation or whether to reject contracts and unexpired leases. 10. The Trustee, with the assistance of his professionals, has been diligently

reviewing and analyzing the Debtors leases and contracts. To that end, the Trustee has filed and presented two motions before this Court seeking to reject certain executory contracts and

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unexpired leases. However, due to the enormity and complexity of this case, the Trustee is unable to confirm that he has identified all of the unexpired leases and executory contracts in this case. As of the date hereof, the Trustee is not aware of any unexpired leases and executory contracts that he will seek to assume. 11. Counterparties will not be prejudiced by this extension as their rights to seek an

order to shorten the Trustee's time to assume or reject any particular executory contract or unexpired lease will be preserved. NOTICE 12. Notice of this Motion has been provided to the parties set forth on the attached

service list, which includes any known non-debtor parties to the Debtors contracts that may be executory.1 In addition, notice of this Motion has been published on the website of the Trustee, www.pfgchapter7.com. The Trustee submits that no other or further notice need be given. WHEREFORE, the Trustee respectfully requests that the Court (a) enter an order substantially in the form filed with the Motion extending the Trustee's time to assume or reject executory contracts and unexpired leases to January 10, 2013; and (b) grant such other and further relief to the Trustee as the Court may deem proper.

The inclusion of any party in the service list shall not be an admission by the Trustee that any party listed has an executory contract or unexpired lease with the Debtor. The Trustee is still in the process of reviewing and analyzing all of the Debtors leases and contracts.

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Dated: August 30, 2012

Respectfully submitted, Ira Bodenstein, not personally, but as chapter 7 trustee for the estate of Peregrine Financial Group, Inc.

By: /s/ Kimberly Bacher One of his attorneys Robert M. Fishman (#3124316) Allen J. Guon (#6244526) Kimberly Bacher (#6285677) Shaw Gussis Fishman Glantz Wolfson & Towbin LLC 321 North Clark Street, Suite 800 Chicago, IL 60654 Phone: (312) 541-0151

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Case 12-27488 Doc 138-1 Filed 08/30/12 Entered 08/30/12 13:49:26 Desc Proposed Order Pursuant to Section 365(d)(1) of the Bankruptcy Code Extending th Page 1 of 1

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