IN RE SERVICE MERCHANDISE COMPANY, INC., (Bankr.M.D.Tenn. 2003)

In re Service Merchandise Company, Inc., et al., Chapter 11, Debtors.

Case No. 399-02649, Jointly Administered.United States Bankruptcy Court, M.D. Tennessee, Nashville Division.
May 28, 2003.

Paul G. Jennings, Beth A. Dunning, Bass, Berry Sims PLC, Nashville, Tennessee, Attorneys for Debtors and Debtors-in-Possession.

John Wm. Butler, Jr., George N. Panagakis, Skadden, Arps, Slate, Meagher Flom (Illinois), Chicago, IL, Attorneys for Debtors and Debtors-in-Possession.

Robert C. Goodrich, Jr., Ronald G. Steen, Jr., Stites Harbison, PLLC, Nashville, Tennessee, Attorney for Claimant.

AGREED ORDER RESOLVING CONTESTED CLAIM NO. 161 OF PETULA ASSOCIATES, LTD.
GEORGE C. PAINE, II, United States Bankruptcy Judge

Upon the Omnibus Objection to certain claims (Docket No. 6696) (the “Objection”), filed by Service Merchandise Company, Inc. (“Service Merchandise”) and 31 of its affiliates (the “Affiliate Debtors”), debtors and debtors-in-possession in the above-captioned cases (Service Merchandise and the Affiliate Debtors collectively, the “Debtors”) and the response to the Objection (Docket No. 6951) (the “Response”), filed by Petula Associates, Ltd. (the “Claimant”); and the Debtors and the Claimant having agreed, as signified by the signatures of counsel below, to a resolution of the disputes related to Claim No. 1611 (the “Claim”) on the terms set forth in this Agreed Order; and the court being otherwise sufficiently advised, it is hereby

ORDERED, ADJUDGED AND DECREED:

1. The Claim shall be and hereby is ALLOWED as allowed general prepetition non-priority unsecured claim in the amount of $1,500,000.00 (the “Allowed Amount”) against Service Merchandise Company, Inc. in Case No. 399-02649.

2. The Claim shall be and hereby is DISALLOWED to the extent it exceeds the Allowed Amount.

3. The automatic stay imposed by 11 U.S.C. § 362(a) remains in effect with respect to any and all actions to collect or enforce the claim allowed in this Order and/or any other claims against the Debtors or against the assets of the Debtors or any affiliate or insider of the Debtors.

4. The Claimant shall have no other claims, whether secured, unsecured, prepetition, postpetition, administrative, priority or otherwise against the Debtors or their estates.