Opinion
Case No: 11-27863
09-06-2012
In re: CANTRELL/CUTTER PRINTING, INC. Debtor
Richard M. McGill Federal Bar No. 02834 LAW OFFICES OF RICHARD M. McGILL Attorney for Cantrell/Cutter Printing Inc. John R. Harney Federal Bar No. 06572 O'DONOGHUE & O'DONOGHUE LLP Attorney for Printing Local 72 Industry Pension Fund
SO ORDERED
_________________
WENDELIN I. LIPP
U. S. BANKRUPTCY JUDGE
WENDELIN I. LIPP
U.S. BANKRUPTCY JUDGE
STIPULATION AND CONSENT ORDER RESOLVING MOTION OF TRUSTEES
OF PRINTING LOCAL 72 INDUSTRY PENSION FUND FOR ENTRY OF AN
ORDER ALLOWING AND DIRECTING PAYMENT OF ADMINISTRATIVE
EXPENSES
This Stipulation and Consent Order ("Stipulation") is made between (i) Cantrell-Cutter Printing, Inc. ("Debtor") and (ii) Trustees of the Printing Local 72 Industry Pension Fund ("Pension Fund" and together with the Debtor, the "Parties") and by and through their attorneys, hereby agree and stipulate with respect to the following:
RECITALS
A. On September 1, 2011 the Debtor filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code ("the Bankruptcy Code").
B. On June 11, 2012, the Pension Fund, a jointly-trusted multiemployer employee pension plan as those terms are defined in Sections 3(3) and 3(37) of the Employee and Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. §§ 1002(3) and (37) to whom the Debtor is required to remit reports and contributions pursuant to its Collective Bargaining Agreement with the International Brotherhood of Teamsters Graphic Communications Union, Local 72-C (the "Local 72"), filed a Motion for Entry of an Order Allowing and Directing Payment of Administrative Expenses and Payment of Contributions [Docket No. 64].
C. At all relevant times, the Debtor and the International Brotherhood of Teamsters Graphic Communications Union, Local 72-C (the "Local 72") have been parties to a collective bargaining agreement (the "CBA") pursuant to which the Debtor has been obligated (i) to contribute a specific amount to the Pension Fund in connection with each hour of employment within the trade and geographical jurisdiction of Local 72 and (ii) to submit monthly reports (the "Reports") showing the covered employees and each hour worked and the corresponding amounts due to the Pension Fund.
D. No Objection to the Pension Fund's Motion for Payment of Administrative Expenses has been filed.
E. The Debtor has not sought to modify or reject the CBA through the process set out in 11 U.S.C. § 1113.
F. The Debtor has failed to pay both pre-petition and post-petition contributions due to the Pension Fund for work performed at Debtor's request from October 2010 through and including July 2012 in the amount of $45,991.50;
NOW THEREFORE, it is hereby stipulated and agreed by and between the Parties, through their undersigned counsel:
(1) The Debtor assumes the CBA and agrees to continue to be bound by its provisions.
(2) Pursuant to Section 507(a)(2) of the Bankruptcy Code, the Pension Fund is entitled to an Administrative Claim for all contributions owed pursuant to the CBA.
(3) In order to cure any defects and defaults in the CBA as required by Section 365 of the Bankruptcy Code, the Debtor shall pay to Plaintiffs, $45,991.50 in delinquent contributions to the Pension Fund for work performed from October 2010 through and including July 2012 in weekly installments of $1,000, payable each Friday, until such delinquent contributions are fully repaid;
(4) The Debtor shall, on and after this date, make timely contributions (i.e. contributions due and owing for work performed on and after August 1, 2012) to the Pension Fund mandated by the CBA now in effect and as subsequently extended or modified, or as superseded by a new CBA, plus any interest and liquidated damages required by the Trust Agreement for failure to make timely contributions;
(5) The Parties recognize that any interest or liquidated damages owed by the Debtor for late payment of contributions shall be classified as a general unsecured claim of the Debtor's bankruptcy estate.
(6) Should Debtor fail to comply with any terms of this Stipulation and Consent Order, Plaintiffs may refile their Motion for Payment of Administrative Expenses with this Court and, upon timely notice to the Debtor, may at that time seek further appropriate monetary and/or injunctive relief.
(7) The Debtor shall file a Plan of Reorganization incorporating the above provisions; and it is SO STIPULATED AND AGREED: _________________
Richard M. McGill
Federal Bar No. 02834
LAW OFFICES OF
RICHARD M. McGILL
Attorney for Cantrell/Cutter Printing Inc.
_________________
John R. Harney
Federal Bar No. 06572
O'DONOGHUE & O'DONOGHUE LLP
Attorney for Printing Local 72 Industry
Pension Fund
I HEREBY CERTIFY that the terms of the copy of the consent order submitted to the Court are identical to those set forth in the original consent order; and the signatures represented by the /s/ ___ on this copy reference the signatures of consenting parties on the original consent order.
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John R. Harney