MEMORANDUM OPINION Re: D.I. Nos. 32854 and 32877 KEVIN GROSS , Bankruptcy Judge . The Reorganized Debtors and the Internal Revenue Service ("IRS") have a dispute over the interest rate payable on a tax deficiency in 1998. Should the deficiency interest be calculated at the Plan rate of 4.19% during the time period from the petition date, April 2, 2001, through the date of payment, March 15, 2009; or should the rate of interest be the rate provided by the Tax Code, 26 U.S.C. 6621 The...
OPINION 1 Adv. Proc. Case No. 16-50425 (CSS). CHRISTOPHER S. SONTCHI , Bankruptcy Judge . INTRODUCTION Before the Court are two related motions to dismiss the remaining claims and counterclaims in this adversary proceeding. Ultimately, beyond the comprehensive arguments, this matter is simple. The parties put forward antithetic theses to justify their priority entitlement to the funds in the bank account at issue here. Those funds are a portion of the proceeds from the sale of the...
OPINION 2 (D.I. 1318) KEVIN J. CAREY , Bankruptcy Judge . Before the Court is the objection filed by the Official Committee of Unsecured Creditors (the "Claim Objection") to the proof of claim filed by Daimler Purchasing Coordination Corp. ("DPCC") for damages arising from the Debtors' rejection of DPCC's contract with A123 Systems, Inc. ("Old A123"). 3 For the reasons set forth below, the Claim Objection will be sustained, in part, and the parties will be directed to confer concerning...
OPINION Re: Adv. D.I. Nos. 29, 36 KEVIN GROSS , Bankruptcy Judge . INTRODUCTION On March 16, 2014 (the "Petition Date"), Simplexity, LLC ("Simplexity") and its affiliates (collectively, the "Debtors") filed petitions for relief under Chapter 11 of the Bankruptcy Code. D.I. 1. On January 7, 2015, the Court entered an order (the "Conversion Order") for relief which converted the Debtors' bankruptcy cases to cases under Chapter 7 of the Bankruptcy Code and appointed a Chapter 7 Trustee (...
Re: Adv. D.I. Nos. 29, 36 OPINION KEVIN GROSS , U.S.B.J. INTRODUCTION On March 16, 2014 (the "Petition Date"), Simplexity, LLC ("Simplexity") and its affiliates (collectively, the "Debtors") filed petitions for relief under Chapter 11 of the Bankruptcy Code. D.I. 1. On January 7, 2015, the Court entered an order (the "Conversion Order") for relief which converted the Debtors' bankruptcy cases to cases under Chapter 7 of the Bankruptcy Code and appointed a Chapter 7 Trustee (the "...
OPINION KEVIN GROSS , U.S.B.J. Emerald Capital Advisors Corp., as Trustee for the FAH Liquidating Trust (collectively, the "Trust") brings this action against Karma Automotive LLC ("Karma") and Wanxiang Clean Energy USA, LLC ("Wanxiang") (collectively, the "Defendants") challenging the issuance of additional securities to Wanxiang from Karma. In a five count complaint (the "Complaint"), the Trust claims that Defendants intentionally and improperly acted to dilute the Trust's common...
OPINION Re Dkt. No. 76 KEVIN GROSS , Bankruptcy Judge . Charles A. Stanziale, Chapter 7 Trustee for the Estates of Simplexity, LLC, et al., ("Simplexity"), has pending the Motion for the Chapter 7 Trustee to Compel Production of Documents Withheld by Versa Capital Management, LLC ["Versa"] and Sullivan & Cromwell LLP ["S&C"] on the Basis of Privilege, (the "Motion"). The Trustee is seeking the production of documents that Versa and S&C withheld on the basis of attorney-client and work...
OPINION 1 Re: Docket Nos. 4, 7, & 11 BRENDAN LINEHAN SHANNON , Bankruptcy Judge . Before the Court is the Motion filed by the Official Committee of Unsecured Creditors' (the "Committee" or the "Plaintiff") for Mandatory Abstention and Remand (the "Motion") [Adv. Docket No 4]. Sprint Solutions, Inc. ("Sprint") objects [Adv. Docket No. 7] to the Motion. For the reasons stated below, the Court will grant the Motion and remand this matter to the Delaware Superior Court. BACKGROUND For...
OPINION Re: Docket Nos. 1, 52, 53, 55, 59, 60, 62, 63, 64, 71, 84 BRENDAN LINEHAN SHANNON , Bankruptcy Judge . Before the Court is the Defendants' Motion to Dismiss, 1 arguing that this Court lacks subject matter jurisdiction on the ground that the Complaint for declaratory relief filed by CareSource is unripe. CareSource contends that its claims for declaratory relief are ripe for decision. For the reasons that follow, the Court will deny the Motion. I. BACKGROUND The Standard...
MEMORANDUM OPINION 1 MARY F. WALRATH , Bankruptcy Judge . Before the Court is the Motion of Visagar M. Shyamsundar (the "Defendant") to Dismiss the Liquidating Trustee's Second Amended Complaint seeking, inter alia, the avoidance and recovery of preferential transfers to an insider. The Defendant argues that the alleged preferential transfers claim should be dismissed because the Liquidating Trustee fails to plead sufficient facts to show during the relevant period that American...
MEMORANDUM OPINION 1 Mary F. Walrath , United States Bankruptcy Judge . Before the Court is the Motion of Visagar M. Shyamsundar (the "Defendant") to Dismiss the Liquidating Trustee's Second Amended Complaint seeking, inter alia , the avoidance and recovery of preferential transfers to an insider. The Defendant argues that the alleged preferential transfers claim should be dismissed because the Liquidating Trustee fails to plead sufficient facts to show during the relevant period that...
OPINION 2 D.I. 293 KEVIN J. CAREY , Bankruptcy Judge . Before the Court is the Debtors' Omnibus Motion for Entry of An Order Authorizing the Rejection of Certain Executory Employment Contracts Nunc Pro Tunc to the Closing Date (D.I. 293) (the "Rejection Motion"), which seeks authorization to reject thirty contracts (collectively, the "Rejection Contracts"). Two of the Debtors' former employees, Andrea Baker and Hector Herrera (collectively, the "Objecting Employees"), jointly...
MEMORANDUM ORDER Re: D.I. Nos. 556 and 557 KEVIN GROSS , Bankruptcy Judge . International Fidelity Insurance Company ("IFIC") has moved for authorization to "Attend and Participate in the Rule 2004 Examinations to be Conducted by the Trustee on November 16 and November 17" (the "Motion"). IFIC wants to attend and participate in Rule 2004 examinations which the Chapter 7 Trustee has arranged to take. IFIC wants to attend and participate in the Rule 2004 examinations in connection with...
MEMORANDUM ORDER GRANTING SUMMARY JUDGMENT 1 Re: Docket Nos. 1, 32, 35, 78, 79, 80, 81, 93, 86, 87, and 88 Re: Docket Nos. 1, 31, 34, 77, 78, 79, 80, 85, 86, 87, and 92 BRENDAN LINEHAN SHANNON , Bankruptcy Judge . Upon consideration of the Trustee's Motions 2 for Summary Judgment Against Defendant Scott R. Hofmeister 3 (the "Motions") and accompanying memoranda of law filed by the Trustee 4 ; the opposition to the Motions 5 filed by Scott R. Hofmeister (the "Defendant"); and the...
OPINION 1 CHRISTOPHER S. SONTCHI , Bankruptcy Judge . This case requires the Court to apply California law to the interpretation of regulations promulgated by the California Air Resources Board implementing a "cap and trade" program for carbon emissions. JURISDICTION This Court has jurisdiction to consider this matter pursuant to 28 U.S.C. 157 and 1334 and the Amended Standing Order of Reference entered by the United States District Court for the District of Delaware on February 29,...
OPINION Re: D.I. 557 & 562 KEVIN GROSS , Bankruptcy Judge . INTRODUCTION The Court is addressing cross-motions for partial summary judgment filed by the plaintiff, PAH Litigation Trust (the "Litigation Trust"), and the defendants in the adversary proceeding, Water Street Healthcare Partners, L.P. and related entities ("Water Street") and Wind Point Partners IV, L.P. and related entities ("Wind Point") (collectively, the "Defendants"). The Litigation Trust and Defendants filed the cross-...
OPINION LAURIE SELBER SILVERSTEIN , UNITED STATES BANKRUPTCY JUDGE . On December 14, 2015, I entered an order confirming a plan of reorganization for then-debtors Millennium Lab Holdings II, LLC and certain of its affiliates ("Millennium" or "Debtors"). 1 The plan provided for third party releases in favor of various non-debtor entities, including, as relevant here, certain of the Debtors' equity holders who contributed $325 million to the estate as part of a settlement contained in the...
OPINION Sontchi , J. INTRODUCTION Before the Court is a motion for reconsideration of an order approving, among other things, a Termination Fee 1 in the amount of $275 million. The Court is taking the extraordinary step of reconsidering its order entered over one year ago because its approval of the Termination Fee was based upon a fundamental misapprehension of critical facts. The Court's misunderstanding was based upon imprecise and incorrect testimony by the Debtors' witness,...
MEMORANDUM OPINION 1 D.I. 1, 8, 9, & 10 MAY F. WALRATH , Bankruptcy Judge . Before the Court is a Motion to Dismiss the Complaint and to Transfer Venue filed by WMI Liquidating Trust (the "Liquidating Trust") in an adversary proceeding brought by Mark J. Sutton (the "Plaintiff"). In its Motion, the Liquidating Trust seeks to dismiss the Complaint for lack of service and failure to state a claim for relief and to transfer venue to the jurisdiction where the Plaintiff's individual...
MEMORANDUM OPINION 1 MARY F. WALRATH , Bankruptcy Judge . Before the Court is the Motion of True Line Wire, Guidance Installation, Inc. (the "Defendant") to dismiss the Complaint of Gavin Solmonese, LLC (the "Liquidating Trustee") seeking the avoidance and recovery of a preferential transfer. The Defendant asserts the defenses found in sections 547(c)(2)(A) and 547(c)(2)(B) of the Bankruptcy Code as grounds for dismissal. For the reasons set forth below, the Motion to Dismiss will be...
