MEMORANDUM OPINION 1 KEVIN GROSS, Bankruptcy Judge. The Debtors, ClearPoint Business Resources, Inc. and ClearPoint Resources, Inc. ("Debtors"), seek to enjoin an alleged violation of the automatic stay by StaffChex, Inc. ("StaffChex"). Debtors invoke 11 U.S.C. 105, 362 and 541 to halt StaffChex's claim that pre-petition agreements between Debtors and StaffChex terminated by their own terms and therefore the automatic stay is not implicated. The Court conducted an evidentiary hearing on...
MEMORANDUM 1 KEVIN J. CAREY, Bankruptcy Judge. On October 7, 2010, the United States Trustee ("UST") filed a motion for an order converting or dismissing the chapter 11 case or appointing a chapter 11 trustee in the bankruptcy case for Midwest Properties of Shawano, LLC ("Midwest Properties")(D.I. 92). On October 13, 2010, the United States Trustee filed a similar motion in the bankruptcy case for Midwest Oil of Minnesota, LLC ("Midwest Oil") (D.I. 33) (jointly, the "UST Motions"). The UST...
PETER J. WALSH, Bankruptcy Judge Dear Counsel: This is with respect to Plaintiff's Motion For An Extension Of Time To Effectuate Service Of Process (the "Motion"). (Doc. # 23) As I believe I made clear in my Memorandum Opinion of November 4, 2010 (Doc. # 21), the service on the lock box at the Bank of America was patently defective. This matter relates to transactions that occurred almost four years ago. I find that the delay could be seriously prejudicial to Defendant. For the many reasons...
OPINION 1 BRENDAN LINEHAN SHANNON, Bankruptcy Judge. Before the Court are three motions to abstain, retransfer, and remand. The motions have been filed by various producers of oil and gas (the "Producers") who sold oil and gas to the Debtors shortly before they filed for bankruptcy protection in this Court. By the motions, the Producers ask this Court to retransfer and remand to state court three actions that have been removed and thereafter transferred to this District by federal judges in...
MEMORANDUM OPINION KEVIN GROSS, Bankruptcy Judge. Introduction Caribbean Petroleum Corporation ("CPC"), Caribbean Petroleum Refining L.P., and Gulf Petroleum Refining (Puerto Rico) (collectively, "Debtors") have moved (the "Rejection Motion") pursuant to 11 U.S.C. 365 to reject any or all of its agreements with franchisees (the "Franchise Agreements") upon the contemplated sale of substantially all of Debtors' assets. The parties objecting to the Rejection Motion are franchisees (the "...
OPINION 1 SONTCHI, Bankruptcy Judge. INTRODUCTION Before this Court are two motions filed by SJW Land Company ("SJW") to compel payment of unpaid 2008 and 2009 property taxes as post-petition administrative expenses on three leases (as defined below): the HQ Lease, the DC Lease, and the Vacant Lease. For the reasons set forth below, the Court finds: (1) Goody's Family Clothing, Inc. ("Debtor I") is not liable for the 2008 property taxes on any of the leases; (2) SJW has a valid general...
MEMORANDUM OPINION WALSH, Bankruptcy Judge. This opinion is with respect to the United States' motion to reconsider and vacate the order dated May 11, 2010 that recognized and enforced a Canadian court order permitting Ernst & Young to file tax returns for two United States subsidiaries of the Canadian parent corporation, Grant Forest Products, Inc. without incurring liability therefor. (Doc. # 71) The issues presented here are whether the order violated the Anti-Injunction Act, 26 U.S.C....
OPINION 1 BRENDAN LINEHAN SHANNON, Bankruptcy Judge Before the Court are two motions to dismiss (the "Motions") [Adv. Docket Nos. 10 and 13] filed by Winford Charles Blasingame, Sandra Blasingame, Harry Franklin Brook, and Terri Linn Brook (collectively, the "Blasingame Plaintiffs") and by Harsco Corporation ("Harsco") seeking the dismissal of the complaint (the "Complaint") [Adv. Docket No. 1] filed by Taylor-Wharton International LLC et al. ("Taylor-Wharton" or the "Debtors"). By their...
OPINION 1 CHRISTOPHER S. SONTCHI, Bankruptcy Judge. INTRODUCTION Before this Court is the defendants' motion to dismiss related to an action filed by Six Flags, Inc. The adversary action asserts causes of action for (i) turnover pursuant to 11 U.S.C. 542(b) (Count I); (ii) breach of contract (Counts II and III); and (iii) declaratory judgment pursuant to 28 U.S.C. 2201 and 2202 (Count IV). The Complaint seeks turnover of property of the estate, damages, and declaratory relief...
OPINION 1 BRENDAN LINEHAN SHANNON, Bankruptcy Judge. Before the Court is the Joint Motion of Bettina Whyte As Trustee for the SemGroup Litigation Trust, and Thomas L. Kivisto, Gregory C. Wallace, Brent Cooper, Kevin L. Foxx, and Alex G. Stallings For Order Approving Settlement [Adv. Docket No. 216] (the "Settlement Motion"). 2 On September 29, 2010, PricewaterhouseCoopers LLP ("PWC") filed an objection to the Settlement Motion [Adv. Docket No. 224] (the "Objection"). On September 30,...
OPINION 1 BRENDAN LINEHAN SHANNON, Bankruptcy Judge. Before the Court is a motion (the "Motion") [Docket No. 1121] of New Generation Advisors, LLC ("New Generation" or the "Movant") to enforce the third amended joint plan of reorganization for Accuride Corporation ("Accuride" or the "Debtor") for the purpose of ordering the Debtor to make an additional distribution to New Generation. The Motion is opposed by the Debtor. For the reasons stated below, the Court will deny the Motion. I....
OPINION ON DEBTORS' PETITION FOR RECOGNITION & RCS CAPITAL DEVELOPMENT, LLC'S MOTION FOR RELIEF FROM STAY KEVIN GROSS, Bankruptcy Judge I. INTRODUCTION The Court has before it two matters: Debtors' petition seeking recognition of certain insolvency-related legal proceedings in Australia under Chapter 15 of Title 11 of the U.S. Code, 11 U.S.C. 101-1532 (the "Bankruptcy Code") and a motion for relief from stay filed by RCS Capital Development, LLC. On May 26, 2010, Debtors filed petitions...
MEMORANDUM OPINION WALSH, J. This opinion is with respect to the objection of NextMedia Group, Inc. (Doc. # 479) to the claim filed by CBS Outdoor, Inc. For the reasons stated below, I will sustain the objection. BACKGROUND The Parties' Agreements CBS Outdoor Inc. ("CBS") and NextMedia Outdoor, Inc. ("NextMedia") own and operate outdoor advertising businesses. On August 29, 2008, CBS and NextMedia entered into an asset purchase agreement (the "Agreement"), whereby CBS purchased certain...
AMENDED FINDINGS OF FACT AND CONCLUSIONS OF LAW 1 CHRISTOPHER S. SONTCHI, Bankruptcy Judge. I. INTRODUCTION 1. Before the court are competing motions relating to the claims of the Debtors' secured lenders as well as potential claims against those lenders. The Debtors' secured lenders assert a secured claim in the amount of approximately $1.1 billion plus interest, fees and expenses. Their collateral consists of $200 million in cash and a pool of commercial mortgage loans that the Debtors...
CHRISTOPHER S. SONTCHI, Bankruptcy Judge. Dear Counsel: Before the Court is a discovery dispute between (i) Century Indemnity Company and Fireman's Fund Insurance Company (collectively, the "Insurers"); and (ii) the Debtor. 1 The question is whether privileged communications between the Debtor and its counsel that were shared pre-petition with an ad hoc committee of asbestos plaintiffs (the "Ad Hoc Committee") and the Debtor's proposed future claimants' representative (the "Pre-Petition FCR")...
OPINION 1 CHRISTOPHER S. SONTCHI, Bankruptcy Judge. Before this Court is the Highland Capital Management, L.P. ("HCMLP") and the Highland Institutional Lenders' (collectively referred to herein, and inclusive of HCMLP, "Highland") motion for summary judgment (the "Motion") as to a complaint ("Complaint") filed by the Official Committee of Unsecured Creditors (the "Committee"). 2 For the reasons set forth below, the Court denies the motion for summary judgment for all but one count due...
MEMORANDUM OPINION 1 MARY F. WALRATH, Bankruptcy Judge. Before the Court is the Motion of Home Depot, Inc. ("Home Depot") to transfer venue of this adversary proceeding to the United States District Court for the Northern District of Georgia. DHP Holdings II Corp., DESA LLC, DESA Heating LLC, DESA Specialty LLC, and DESA IP LLC (collectively, the "Debtors") oppose the motion. The Court will grant the motion for the reasons discussed below. I. BACKGROUND On December 29, 2008 (the "...
OPINION 1 CHRISTOPHER S. SONTCHI, Bankruptcy Judge. INTRODUCTION Before this Court is the defendant Detroit Forming, Inc.'s motion for summary judgment related to the preference action filed by Jeoffrey L. Burtch, Chapter 7 Trustee for Archway Cookies LLC and Mother's Cake & Cookie Co. (collectively, the "Debtors"). The adversary action seeks recovery of preferential transfers made by the Debtors to the defendant pursuant to 11 U.S.C. 547 and 550. The defendant seeks summary judgment...
OPINION 1 SONTCHI, Bankruptcy Judge. INTRODUCTION Before this Court is the defendant Millennium Digital Media Systems, L.L.C.'s (partial) Motion to Dismiss the Verified Amended Complaint (the "Motion") filed by James Cable, LLC. The Complaint, as defined below, alleges, among other things, (i) anticipatory repudiation of the asset purchase agreement, 2 (ii) tortious and bad faith breach of the APA, and (iii) civil conspiracy related to the defendant's and Highland's (as defined below)...
MEMORANDUM OPINION 1 BRENDAN LINEHAN SHANNON, Bankruptcy Judge. Before the Court is (i) the Motion to Dismiss Adversary Proceeding Pursuant to Federal Rules of Civil Procedure 12(b)(1), 12(b)(5) and 12(b)(6) [Adv. Docket No. 4] (the "Officer Motion") filed by defendants Marc Doubleday, George Hides, Jack Kogut, Robert McGinnis, Laurel Omert, and Sophia Twaddell (collectively, the "Officer Defendants" and together with Steven Gould and Northfield Laboratories, Inc., the "Defendants"); and...
