Jointly Administered Bankruptcy Case No. 301-12036, Adv. Proc. No. 303-0699A.United States Bankruptcy Court, M.D. Tennessee, Nashville Division.
February 28, 2005.
Beth A. Dunning, DUNNING LAW GROUP, PLLC, Brentwood, Tennessee, Counsel for the Consolidated Debtors acting by and through the Plan Administrator.
John W. Lamb, Jr., BOULT, CUMMINGS, CONNERS BERRY, PLC, Counsel for Defendant.
AGREED ORDER OF SETTLEMENT AND DISMISSAL
KEITH LUNDIN, Bankruptcy Judge
This matter is before the Court upon the Complaint (the “Complaint”)[2] filed by Phoenix Restaurant Group, Inc. (“PRG”) and the PRG affiliates (with PRG, collectively, the “Consolidated Debtors”)[3] against Omaha Public Power District (OPPD) (the “Defendant”; and with the Consolidated Debtors, collectively, the “Parties”), which Complaint seeks avoidance
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and recovery of certain payments under sections 547 and 550 of the United States Bankruptcy Code, 11 U.S.C. §§ 101–1330 (the “Bankruptcy Code”). Based upon the agreements, acknowledgements, stipulated facts, and conclusions of the Parties set forth below, which are evidenced and acknowledged by the signatures of the Parties on this Order, the record herein, and all other circumstances, therefore,
THE COURT FINDS, ADJUDGES AND DECREES:
A. The Complaint seeks to avoid and recover the value of certain payments (the “Payments”) made to the Defendant prior to the commencement of these bankruptcy cases.
B. The Consolidated Debtors and the Defendant have agreed to a settlement and resolution (the “Settlement”) of all factual and legal issues in this adversary proceeding.
C. Pursuant to the Settlement and in partial consideration therefor, the Defendant has agreed to pay to the Consolidated Debtors the amount of $2,838.47 (the “Settlement Amount”).
D. Pursuant to the Settlement and in partial consideration therefor, the Defendant has expressly agreed to voluntarily waive (the “Claim Waiver”) the following claims against the Consolidated Debtors (the “Waived Claims”):
(i) any and all claims identified by the Consolidated Debtors on any schedules or amended schedules filed under 11 U.S.C. §§ 521(1) or 1106(a)(2) in these bankruptcy cases:
(ii) notwithstanding any rights of the Defendant under 11 U.S.C. § 502(h), any and all claims arising from the payment of the Settlement Amount; and
(iii) any and all other claims, within the meaning of 11 U.S.C. § 101(5), that have been or could be asserted against the Consolidated Debtors in these bankruptcy cases, that are based on or arising as a result of any rights, claims, demands, suites,Page 3
actions, causes of action, damages, costs, losses, expenses, liabilities or defenses that Defendant has held or asserted, or that Defendant may now or in the future hold or assert against the Consolidated Debtors, and that arose, within the meaning of the Bankruptcy Code, on or before entry of this Order, whether or not such claims are secured, unsecured, whether or not such claims arose prepetition or postpetition, whether or not such claims are entitled to administrative expense status or any other priority status, whether or not such claims are evidenced by a proof of claim filed in these bankruptcy cases and whether or not such claims have been transferred to any other person or entity or continue to be held by Defendant.
E. The Defendant expressly acknowledges and agrees that the Defendant understands the effect of the Claim Waiver and that such Claim Waiver was agreed to only after the Defendant had adequate opportunity to consult with counsel of the Defendant’s choosing regarding the Defendant’s legal rights and the effect of such Claim Waiver.
F. Pursuant to the Settlement and in partial consideration therefore, upon full compliance by the Defendant with the terms of the Settlement and this Order, the Consolidated Debtors agree to completely and fully remise, release, acquit, and forever discharge Defendant from any and all rights, claims, demands, suits, actions, causes of action, obligations, damages, costs, losses, expenses and liabilities, arising under 11 U.S.C. §§ 522, 544, 545, 547, 548, 549, 553 or 550 (the “Avoidance Recovery Claims”).
G. In consideration of the Settlement Amount and the Claim Waiver, the Consolidated Debtors have agreed to dismiss the Complaint with prejudice against the Defendant from any further liability on the allegations raised in the Complaint.
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H. Sections 21.12 and 18.12.5 of the confirmed Plan, among others, grant the Plan Administrator discretion to resolve all claims and controversies in these bankruptcy cases on behalf of the Consolidated Debtors, without further notice, hearing or Court authority.
I. Dismissal of the Complaint with prejudice against Defendant, on the terms set forth in this Order, is appropriate under all of the circumstances.
THEREFORE, THE COURT ORDERS, ADJUDGES AND DECREES:
1. In accordance with the knowing and voluntary Claim Waiver by the Defendant, the Waived Claims shall be DISALLOWED in their entirety and the Defendant shall not have and is forever barred from asserting, liquidating, collecting on or receiving a distribution on the Waived Claims and the Consolidated Debtors are hereby released and forever discharged from the Waived Claims.
2. The Defendant is hereby released and forever discharged from the Avoidance Recovery Claims.
3. The Court hereby dismisses with prejudice this adversary proceeding against the Defendant, conditioned upon the Parties’ compliance with all of the terms of the Settlement, and the terms of this Order, the Parties having agreed and represented, as confirmed by the signatures of authorized representatives of the Parties below, that their assent to any particular term in the Settlement is conditioned upon and consideration for the other terms, the severance of any one of which the Parties represent would negate their agreement to the Settlement.
4. Notwithstanding anything in this Order to the contrary, no waiver or release of claims granted hereunder shall be deemed to be a waiver or release of liability as aganist the Consolidated Debtors, but rather a waiverand release of any right to collect any such liability
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from the Conolidated Debtors, to satisfy such liability from assets of the Debtors and/or to participate in any distribution of assets of the Consolidated Debtors.
5. If the Defendant breaches the terms of this Order or the Settlement and/or withdraws or stops payment on any tender of the Settlement Amount or fails to immediately pay the full Settlement Amount, then the limitation of liability and other benefits granted to the Defendant in this Order shall be null, void and of no effect, and the Consolidated Debtors shall be entitled to have this Order vacated, to reinstitute this adversary proceeding and/or to otherwise fully pursue the causes of action set forth in the Complaint, as if no Settlement had occurred, along with any claims for damages suffered by the Consolidated Debtors or their estates, and in any such circumstance, the Defendant shall be barred from asserting any defense to such actions on the basis of the Settlement or any term set forth this Order.
6. Except to the extent a particular claim is specifically allowed or disallowed by the terms of this Order, neither the agreement of the Consolidated Debtors to the Settlement nor the terms of this Order shall be deemed to be a waiver, judicial determination, res judicata or preclusive, of any rights that the Consolidated Debtors might otherwise have to object or otherwise dispute, on any grounds, any claim asserted by the Defendant.
7. Except to the extent the Court does not have subject matter jurisdiction under applicable law, any matters or disputes related to the enforcement of the terms of this Order or that otherwise arise from, or are related to this Order, shall be heard by this Court unless otherwise agreed in writing by the Parties.