Case No. 00-34533, Jointly Administered.United States Bankruptcy Court, E.D. Virginia, Richmond Division.
July 13, 2004
Troy Savenko, Bruce H. Matson (Va. Bar No. 22874), Troy Savenko (Va. Bar No. 44516), Katherine Macaulay Mueller (Va. Bar No. 44302), LeCLAIR RYAN, A Professional Corporation, Richmond, Virginia, Counsel for the Debtors.
ORDER SUSTAINING DEBTORS’ OBJECTION TO GENERAL UNSECURED CLAIMS SUBJECT TO ALTERNATIVE DISPUTE RESOLUTION PROCEDURES
DOUGLAS TICE, Chief Judge, Bankruptcy
This matter coming to be heard on the Debtors’ First Omnibus Objection To General Unsecured Claims Subject To This Court’s Order Pursuant To Sections 105(a), 362, 363, 502 And 503 Of The Bankruptcy Code And Federal Rule Of Bankruptcy Procedure 9019
Establishing Alternative Dispute Resolution Program To Permit Debtors To Liquidate Certain Prepetition Claims (the “Objection”) and responses thereto (the “Responses”). The Court has reviewed the Objection and Responses and heard the statements of counsel for the Debtors in support of the relief requested in the Objection and Fannie McRae, pro se, in support of her Response at a hearing before the Court on June 23, 2004 (the “Hearing”). The Court, has determined that the legal and factual bases set forth in the Objection and at the Hearing establish just cause for the relief herein granted. Accordingly, it is hereby
FOUND AND DETERMINED THAT:
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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).
C. Notice of the Objection and proposed order was served upon the last known addresses for the claimants listed on Exhibit A to the Objection and their respective counsel where applicable. Such notice was sufficient.
D. On July 27, 2001, this Court entered the Order Pursuant To Sections 105(a), 362, 363, 502 and 503 Of The Bankruptcy Code And Federal Rule Of Bankruptcy Procedure 9019 Establishing Alternative Dispute Resolution Program To Permit Debtors To Liquidate Certain Prepetition Claims (the “ADR Order”).
E. Among other relief granted therein, the ADR Order approved the use of the Alternative Dispute Resolution Procedures (the “ADR Procedures”).
F. The claimants and claims set forth on Exhibit A to the Objection are subject to the ADR Order and Procedures (the “Subject Claimants,” these claims, the “Subject Claims”). Until addressed by further order of this Court, the claimants listed on Exhibits 1 and 2 attached hereto have not been determined to be “Subject Claimants.”
G. The Subject Claimants were served properly with an ADR Package and failed to respond appropriately within the time proscribed by the ADR Order and Procedures.
H. Pursuant to Section 3.2 of the ADR Procedures, the Subject Claimants are deemed to have opted out of the ADR Program.
I. Pursuant to Section 1.2 of the ADR Procedures, the Subject Claims are barred provisionally.
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J. The Subject Claimants have taken no action to reinstate the Subject Claims as required by Section 1.2 of the ADR Procedures.
K. The Debtors have demonstrated good cause justifying the relief requested in the Motion.
Accordingly, it is hereby ADJUDGED, DECREED AND ORDERED that:
1. The Objection is SUSTAINED with regard to the Subject Claimants only;
2. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Motion.
3. The Subject Claims listed on Exhibit A to the Objection are hereby disallowed.
4. The Subject Claims for which no proof of claim has been filed are hereby disallowed, and any proof of claim filed subsequently shall be deemed disallowed without further order of this Court.
5. The hearing on the Objection as it relates to the claims and claimants listed on Exhibit 1 attached hereto is CONTINUED until July 21, 2004 at 2:00 p.m., the purpose of which continuance is to allow these claimants to initiate participation in the ADR Program.
6. The Objection as it relates to the claimants and claims listed on Exhibit 2 attached hereto is WITHDRAWN without prejudice to the Debtors to renew their objection on any ground should it be necessary.
7. Except to the extent expressly allowed herein, the Debtors maintain the right to object further to any and all claims, whether or not the subject of this Objection, on any grounds as allowed by applicable law.
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8. Upon entry, the Clerk shall serve a copy of this Order to counsel for the Debtors, who shall serve a copy thereof to those parties on Exhibit A to the Objection and Exhibits 1 and 2
attached hereto.
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EXHIBIT 1 ADR CLAIMS FOR WHICH OBJECTION CONTINUED
CLAIMANT CLAIM NO.
Buckner, Cassandra 009393, 012256 Cook, Freida Jane 010820 Cook, David 003416 Henley, Sheila 010642 Jenkins, Wayne 002537, 004606 Jewett, Steven 006246, 009488 Jones, John T. 000950 McRae, Fannie 012148 001660, 007153, 007154, 007155, 007156, 007157, Moore, Karen 010737, 010738, 010739, 010740, 010741, 010742 Musselman, Freda, Rose 010658, 001020 Sowers, Billy 002189, 005781, 012427
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EXHIBIT 2 CLAIMS FOR WHICH OBJECTION WITHDRAWN
CLAIMANT CLAIM NO.
Brinson, Peggy Brown, Theresa Gonzalez, Samuel Eloy 001226 Hall, Ricky 011955, 005780[1]
Nunley, Mary B. 003970, 010567, 010598 Thompson, Priscilla 012174, 012175
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