Case No. 01-16034 (AJG), Jointly Administered.United States Bankruptcy Court, S.D. New York.
April 21, 2004
Martin J. Bienenstock (MB 3001), Brian S. Rosen (BR 0571), Martin A. Sosland (Pro Hac Vice), WEIL, GOTSHAL MANGES LLP, New York, New York, Attorneys for the Debtors.
Leslie A. Berkoff (LB-4584), Garden City, New York, Lawrence E. Oscar (Ohio#0022696), Hahn Loeser Parks, LLP, Michael P. Shuster (Ohio#0064518), Cleveland, Ohio, MORITT HOCK HAMROFF
HOROWITZ LLP., Attorneys for Durrel Metal Products, TW Forge, Inc., Sterling Foundry, Inc. and Indiana Steel Wire LLC.
STIPULATION AND ORDER REGARDING MOTION OF DURREL METAL PRODUCTS, TW FORGE, INC., STERLING FOUNDRY, INC. AND INDIANA STEEL WIRE LLC FOR RELIEF FROM THE AUTOMATIC STAY TO EFFECT SETOFF
ARTHUR GONZALEZ, Bankruptcy Judge
Enron Energy Services, Inc., as debtor and debtor in possession (“EESI”) and Durrel Metal Products, TW Forge, Inc., Sterling Foundry, Inc. and Indiana Steel Wire LLC (collectively, the “Durrel Parties”), by and through their respective counsel, do hereby stipulate (the “Stipulation and Order”) as follows:
RECITALS:
A. Commencing on December 2, 2001 (the “Petition Date”) and periodically thereafter, Enron Corp. (“Enron”) and certain of Enron’s direct and indirect subsidiaries (collectively, the “Debtors”), including EESI, each filed a voluntary petition for relief under chapter 11 of title 11, United States Code (the “Bankruptcy Code”). The Debtors’ chapter 11 cases have been procedurally consolidated for administrative purposes. As of the date hereof,
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the Debtors continue to operate their businesses and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.
B. By motion, dated March 24, 2004 (the “Motion”), the Durrel Parties seek entry of an order for relief from the automatic stay to allow the Durrel Parties to effect a setoff of allegedly mutual prepetition obligations allegedly owing (a) from the Debtors to the Durrel Parties, and (b) from the Durrel Parties to the Debtors.
C. The Motion is currently set for hearing on April 22, 2004.
D. The Debtors have objected to certain claims filed by the Durrel Parties (the “Claim Objection”), which objection is currently set for an initial, non-evidentiary hearing on May 27, 2004.
E. In order to provide additional time for the parties to negotiate a potential consensual resolution of the Motion and the Claim Objection, EESI and the Durrel Parties desire that the hearing on the Motion be adjourned and the stay continue in effect on the terms provided herein.
NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED by EESI andthe Durrel Parties as follows:
1. An initial, non-evidentiary hearing shall be held to consider the Motion and the relief requested therein on May 27, 2004 at 10:00 a.m., or as soon thereafter as counsel may be heard (the “Initial Hearing”).
2. Objections to the Motion and the relief requested therein shall be filed on or before 5:00 p.m. (New York Time) on May 24, 2004. Objections to the Claim Objection shall be filed by the Durrel Parties by the same date and time.
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3. Pending the conclusion of, or as a result of, the Initial Hearing and a determination under section 362(d) of the Bankruptcy Code, the automatic stay shall continue in effect with respect to the Durrel Parties pursuant to section 362(e) of the Bankruptcy Code.
4. Except as expressly provided herein, the parties (including the statutory committee of unsecured creditors appointed in the Debtors’ chapter 11 cases) reserve all of their respective rights, claims and defenses with respect to the Motion and the relief sought therein.
5. The Bankruptcy Court shall retain exclusive jurisdiction over all matters related to or arising under this Stipulation and Order.
6. To facilitate execution, this Stipulation and Order may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature and acknowledgement of, or on behalf of, each party appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making proof of this Stipulation and Order to produce or account for more than a single counterpart containing the respective signatures and acknowledgement of, or on behalf of, each of the parties hereto. Facsimile signatures shall be binding to the same effect as originals.
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IT IS SO ORDERED.