Case Nos. 01-41593-293.United States Bankruptcy Court, E.D. Missouri, Eastern Division.
August 24, 2004
Mark L. Prager, Michael J. Small, Derek L. Wright, FOLEY
LARDNER LLP, Chicago, Illinois, Attorneys for SCOTT PELTZ, as Chapter 11 Plan, Administrator for BIS Administration, Inc., f/k/a Bridge Information Systems, Inc. et al.,
NOTICE OF COMPROMISE OF CERTAIN CLAIMS OF J.J. KENNY, INC.
DAVID McDONALD, Chief Judge, Bankruptcy
Scott Peltz, as Chapter 11 Plan Administrator for BIS Administration, Inc., f/k/a Bridge Information Systems, Inc., et al., by and through his attorneys, hereby notices the settlement and compromise of certain claims of J.J. Kenny, Inc. (“J.J. Kenny”), and states as follows:
1. On February 15, 2001, BIS and certain of its subsidiaries (collectively, the “Debtors”) filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Missouri, Eastern Division (the “Bankruptcy Court”).
2. In accordance with Section 8.03 of the Second Amended Joint Plan of Liquidation (“the Plan”), as confirmed by order of the Bankruptcy Court, and Section 1.2 of the Plan Administrator Agreement, the Plan Administrator may settle, compromise or otherwise resolve any Disputed Claim without approval of the Bankruptcy Court.
3. J.J. Kenny filed an administrative claim, docket entry 554 (the “Application”), in the amount of $94,657.00 against the Debtors on July 10, 2001.
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4. J.J. Kenny filed claim number 1217, a pre-petition, unsecured, non-priority claim in the amount of $71,875.00 against the Debtors on June 28, 2001 (“Claim 1217”). However, this claim was later amended by a subsequent proof of claim number 1690.
5. J.J. Kenny filed claim number 1690, a pre-petition, unsecured, non-priority claim in the amount of $159,625.00 against the Debtors on August 21, 2001 (“Claim 1690”). However, this claim was later amended by a subsequent proof of claim number 1773.
6. J.J. Kenny filed claim number 1773, a pre-petition, unsecured, non-priority claim in the amount of $443,378.00 against the Debtors on December 5, 2001 (“Claim 1773,” and together with the Application, Claim 1217, and Claim 1690, the “Claims”). This is the surviving claim after the two previously listed amended claims.
7. The Plan Administrator filed an objection to the Application, Claim 1217, Claim 1690 and Claim 1773 on August 7, 2003 (the “Objection”).
8. The Plan Administrator alleges that J.J. Kenny received $87,500.00 from Debtor during the 90-day preference period preceding the filing of Debtor’s petition.
9. The Plan Administrator asserted, pursuant to sections 547 and 550 of the Bankruptcy Code, that the Plan Administrator is entitled to recover $87,500.00 as a preferential transfer.
10. The Plan Administrator filed a complaint against J.J. Kenny in the amount of $87,500.00 on February 11, 2003 (Adv. Pro. No. 03-4363-293) (the “Complaint”).
11. The parties have entered into a settlement agreement, following arms-length negotiations, resolving the Claims and the Complaint.
12. Under the terms of the Settlement Agreement, J.J. Kenny agreed to pay the Plan Administrator $25,000.00 and the Plan Administrator agreed to allow Claim 1773 (the
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Claim”) as a single, unsecured, pre-petition, non-priority claim solely against the Debtor, TLR Administration, Inc. f/k/a Telerate, Inc., Case No. 01-41611-293. J.J. Kenny agreed to withdraw any and all additional claims against the Debtors, and the Plan Administrator agreed to withdraw the Objection and the Complaint.
THEREFORE, Claim 1217, Claim 1690, Claim 1773, the Application and the Objection are resolved, under the terms set forth in the Settlement Agreement.
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SO ORDERED, claim numbers 1217, 1690, and the administrative claim filed by J.J. Kenny shall be withdrawn, and claim number 1773 filed by J.J. Kenny shall be allowed, as specified in the Notice of Compromise of Certain Claims of J.J. Kenny, this ____ day of August, 2004.
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