Case No. 01-60386-DOT, Chapter 11, Procedurally ConsolidatedUnited States Bankruptcy Court, E.D. Virginia, Richmond Division
June 18, 2002
Counsel for Keith L. Phillips, Chapter 11 Trustee: Benjamin C. Ackerly, VSB #9120 and Tyler P. Brown, VSB #28072 with Hunton Williams from Richmond, Virginia.
ORDER GRANTING CHAPTER 11 TRUSTEE’S MOTION PURSUANT TO 11 U.S.C. § 365 FOR ENTRY OF AN ORDER AUTHORIZING REJECTION OF CERTAIN MANAGEMENT CONTINUITY AGREEMENTS
DOUGLAS O. TICE, United States Bankruptcy Court Judge
This matter came before the Court on the Motion of Keith L. Phillips (the “Trustee”), the duly appointed Chapter 11 Trustee for the above-captioned debtors (the “Debtors”) for an pursuant to 11 U.S.C. § 365 for entry of an order authorizing rejection of certain Management Continuity Agreements (the “Motion”) and the Limited Objection to the Motion filed by the Official Committee of Unsecured Creditors (the “Limited Objection”). The Court having considered the Motion and the Limited Objection, the arguments of counsel and the evidence presented at a hearing to consider the Motion and the Court finding that: (a) the Court has jurisdiction over this matter pursuant to 28 U.S.C. § 157 and 1334, (b) this is a core proceeding pursuant to 28 U.S.C. § 157 (b)(2), and (c) notice of the Motion was sufficient under the circumstances. Accordingly, the Court having determined that the legal and factual bases set forth in the Motion and at the hearing establish just cause for the relief granted herein,
It is hereby ORDERED that:
1. The Motion is GRANTED.
2. Capitalized terms not defined herein shall have the meaning ascribed to them in the Motion.
3. The three Management Continuity Agreements between the Debtors and David McComas, Naeem Ahmad and Thomas Terry are hereby rejected effective as of the date hereof pursuant to 11 U.S.C. § 365 only to the extent necessary and applicable.
4. Nothing herein shall affect the rights of the Trustee, the Committee and all other parties in interest to challenge the Agreements as void ab initio under applicable bankruptcy and non-bankruptcy law, and to object to, or otherwise seek to subordinate, any alleged claims that may be asserted by the Executives under the Agreements.
5. The Clerk of Court shall send a copy of this Order as entered to all necessary parties pursuant to the Local Rules.