Case No. 01 B 14424 (Jointly Administered)United States Bankruptcy Court, N.D. Illinois, Eastern Division
June 17, 2002
STIPULATION AND ORDER MODIFYING AUTOMATIC STAY FOR LIMITED PURPOSE OF EFFECTUATING SETOFF
JOHN H. SQUIRES, United States Bankruptcy Judge
This stipulation and order by and between National Steel Corporation (“NSC”) and Joseph Behr Sons (“Behr”) sets forth the terms and conditions under which NSC and Behr have consented to entry of the within Order.
Recitals
WHEREAS, NSC and 41 of its subsidiaries (collectively, “Debtors”) commenced cases under Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) on March 6, 2002 (the “Petition Date”);
WHEREAS, Debtors are continuing in possession of their property and operating and managing their businesses as debtors-in-possession pursuant to Sections 1107 and 1108 of the Bankruptcy Code;
WHEREAS, Debtors’ above-captioned cases are being jointly administered before this Court;
WHEREAS, this Court has jurisdiction over the matters arising pursuant to this stipulation and Order, as well as over NSC and Behr;
WHEREAS, prior to the Petition Date, NSC was obligated and indebted to Behr for certain amounts arising from NSC’s purchase of scrap processing services from Behr pursuant to certain agreements between NSC and Behr (the “Prepetition Behr Claim”);
WHEREAS, prior to the Petition Date, Behr was obligated and indebted to NSC for certain amounts arising from Behr’s purchase of scrap metal from NSC pursuant to certain agreements (the “Prepetition NSC Claim”);
WHEREAS, pursuant to Section 362 (a)(7) of the Bankruptcy Code, Behr has been stayed from proceeding with the setoff that is the subject of this stipulation and Order;
NOW THEREFORE, in consideration of the foregoing and in consideration of the terms, conditions and mutual agreements set forth herein, IT IS HEREBY STIPULATED, AGREED AND ORDERED THAT;
1. The Prepetition NSC Claim is approximately $447,390.81.
2. The Prepetition Behr Claim is approximately $411,989.06.
3. Effective upon entry of this stipulation and Order, the automatic stay is modified for the limited purpose of permitting Behr to effectuate the setoff set forth herein. As a result of this setoff, Behr is obligated and indebted to NSC in the pre-petition amount of $35,401.75 (the “Behr Debt”).
4. Except as set forth in paragraph 3 herein, the automatic stay shall remain in full force and effect and shall not otherwise be deemed modified, lifted or waived in any manner.
5. Within two (2) business days of full execution of this stipulation, Behr shall pay NSC the Behr Debt.
6. NSC consents to the lifting of the automatic stay pursuant to Section 362 (d) of the United States Bankruptcy Code for the purpose of allowing the setoff agreed to herein, and NSC agrees to move the Bankruptcy Court for approval of this stipulation pursuant to Fed.R.Bankr.Pro. 4001 (d).
7. This Court shall retain jurisdiction to hear and determine any matters arising from or relating to this stipulation and Order.
8. This stipulation and Order may be signed in counterparts, each of which counterpart shall constitute an original, but all of which together shall constitute one and the same agreement.