Case No. 02-B02474 (Jointly Administered).United States Bankruptcy Court, N.D. Illinois, Eastern Division.
June 14, 2004
Andrew Goldman, Esquire by permission, Wilmer Cutler Pickering, New York, New York, Attorney for Kmart Corporation.
Traccy L. Rannals, Esquire, Gainsburgh, Benjamin, David, Meunier Warshauer, Suite, New Orleans, Louisiana, Attorney for Yvonne Strug and Gerald Strug.
AGREED ORDER BETWEEN KMART AND YVONNE STRUG AND GERALD STRUG TO MODIFY AUTOMATIC STAY AND PLAN INJUNCTION
SUSAN SONDERBY, Chief Judge, Bankruptcy
This Agreed Order is entered into and submitted to the Court in accordance with the agreement of Kmart Corporation and certain of its subsidiaries, former debtors and debtors-in-possession in the above captioned cases (collectively, “Kmart”) and Yvonne Strug and Gerald Strug, in resolution of the Strugs’ Motion for Relief from the Automatic Stay and for Relief from Article 12.11 of Kmart’s First Amended Joint Plan of Reorganization (the “Plan”; Docket No. 23572) (the “Motion”), to a modification of the automatic stay and the plan injunction which became effective as of May 6, 2003, the effective date of Kmart’s First Amended Joint Plan of Reorganization, pursuant to Article 12.11 thereof and 11 U.S.C. § 524 and 1141 (the “Plan Injunction”) as set forth herein; it appearing to the Court that the relief should be granted,
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED THAT:
1. Yvonne Strug and Gerald Strug have exhausted that certain person injury settlement procedure (the “Claims Procedure”) approved by this Court on September 8, 2003 (Docket No. 17525).
Page 2
2. The automatic stay provision of 11 U.S.C. § 362(a) (the “Automatic Stay”) and the Plan Injunction, with respect to certain litigation styled: Yvonne Strug and Gerald Strug v. Kmart Corporation, docket No. 591-921 “E” pending in the 24th Judicial District Court, Gretna, Louisiana (the “Litigation”), in which Yvonne Strug and Gerald Strug seek to establish and liquidate a personal injury claim (the “Claim”), are hereby modified in accordance with the terms set forth in this Agreed Order.
3. The Automatic Stay and the Plan Injunction are partially lifted to permit the Litigation to proceed and continue to a final judgment or settlement.
4. Notwithstanding anything in this Agreed Order to the contrary, the Automatic Stay and the Plan Injunction shall remain in effect with respect to any and all actions by Yvonne Strug and Gerald Strug to execute on any final judgment or settlement against Kmart, Kmart’s estates, the reorganized debtors, or any of their property; provided however, that once the Claim is liquidated by a final judgment or settlement, Yvonne Strug and Gerald Strug may, notwithstanding anything in this Agreed Order to the contrary, seek payment of such Claim in accordance with the Plan or the Claims Procedure.
5. Nothing in this Agreed Order shall be deemed an admission of fact on the part of Kmart with respect to the Claim or any facts alleged in the Motion or in the Litigation.
6. This Court shall retain jurisdiction to hear any matters or disputes arising from or relating to this Agreed Order.
Page 1