Opinion
Case No. 01-60386-DOT, Procedurally Consolidated
November 7, 2002
Benjamin C. Ackerly, Tyler P. Brown, HUNTON WILLIAMS, Richmond, Virginia, Counsel for Keith L. Phillips, Chapter 11 Trustee.
H. Jason Gold, Valerie P. Morrison, Raymond R. Pring, Jr., WILEY REIN FIELDING LLP, McLean, Virginia, Counsel for Merchants Express Money Order Company and MEMO Money Order Company.
ORDER GRANTING CHAPTER 11 TRUSTEE'S MOTION FOR APPROVAL OF SETTLEMENT WITH MERCHANTS EXPRESS MONEY ORDER COMPANY AND MEMO MONEY ORDER COMPANY
This matter came before the Court on the Motion of Keith L. Phillips, the Chapter 11 Trustee in these Chapter 11 cases (the "Trustee"), by counsel, pursuant to § 105 of the United States Bankruptcy Code, 11 U.S.C. § 101-1330 (the "Bankruptcy Code"), and Rule 9019 of the Federal Rules of Bankruptcy Procedure, for Entry of an Order Approving Settlement (the "MEMO Settlement Motion") with Merchants Express Money Order Company and MEMO Money Order Company ("MEMO"). The Court, having reviewed and considered the MEMO Settlement Motion, and having heard the arguments of counsel at the expedited hearing on the MEMO Settlement Motion on November 7, 2002, finds that (a) the Court has jurisdiction over this matter pursuant to 28 U.S.C. § 157 and 1334, (b) this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2), (c) notice of the MEMO Settlement Motion and the proposed Order granting the MEMO Settlement Motion was sufficient under the circumstances, (d) the terms of the settlement as set forth in the MEMO Settlement Motion are fair and reasonable and are the result of good faith, arms' length negotiations, and (e) no objections were filed in response to the MEMO Settlement Motion. Finding that the relief requested in the MEMO Settlement Motion is reasonable and necessary, and it appearing just and proper to do so, it is accordingly hereby
ORDERED, ADJUDGED, AND DECREED THAT:
1. The MEMO Settlement Motion is hereby GRANTED.
2. The terms of the settlement as set forth in the MEMO Settlement Motion are APPROVED in their entirety.
3. Without limiting the foregoing, MEMO holds a valid first priority post-petition lien on all proceeds of MEMO money order sales to secure post-petition obligations, notwithstanding that such proceeds may be commingled with other funds. The extent of MEMO's lien and the method for determining how the proceeds are to be divided among competing lienholders, if any, is an open issue that shall be determined by further order of the Court.
4. The Trustee is directed to serve a copy of this Order as entered on all necessary parties and to file with the Court the appropriate certificate of service.