Opinion
Case No. 09-31696 (NVA) Case No. 09-31696 (NVA), Case No. 09-31702 (NVA), Case No. 09-31703 (NVA), Case No. 09-31704 (NVA), Case No. 09-31706 (NVA), Case No. 09-31707 (NVA), Case No. 09-31708 (NVA), Case No. 09-31709 (NVA), (Jointly Administered Under Case No. 09-31696 (NVA)).
April 14, 2011
Irving E. Walker (Bar No. 00179), G. David Dean (Bar No. 26987), Cole, Schotz, Meisel, Forman Leonard, P.A., Baltimore, Maryland, Attorneys for Reorganized Debtors.
Joseph Selba, Esquire (Bar No. 29181), Bishop, Daneman Simpson, LLC, Baltimore, Maryland, Attorneys for Claimants.
The above-captioned debtors and debtors-in-possession (together, the "Debtors" or "Reorganized Debtors"), Dixie Construction Company, Inc. ("Dixie"), Shawn A. Pyle ("Pyle"), and Diane H. Dixon ("Dixon," and together with Dixie and Pyle, the "Claimants"), by their respective undersigned counsel, hereby stipulate and agree as follows:
Recitals
1. On March 16, 2010, Dixie filed a secured proof of claim (claim no. 38) against Debtor Gemcraft Homes Forest Hill, LLC, in the amount of $3,500,000 (the "Dixie GFH Claim").
2. On March 16, 2010, Dixie filed a secured proof of claim (claim no. 38) against Debtor DLM, LLC in the amount of $3,500,000 (the "Dixie DLM Claim").
3. On March 16, 2010, Pyle and Dixon filed a joint secured proof of claim (claim no. 39) against Debtor DLM, LLC in the amount of $805,000.00 (the "Pyle Claim").
4. On March 14, 2011, the Reorganized Debtors filed their Third Omnibus Objection to Certain (I) No Liability Claims, (II) Duplicative Claims, (III) Overstated Claims, and (IV) Improperly Classified Claims [Docket No. 1012] (the "Third Omnibus Objection"). In the Third Omnibus Objection, the Reorganized Debtors objected, inter alia, to (i) the Dixie DLM Claim as being duplicative of the Dixie GFH Claim; (ii) the Dixie GFH Claim as being improperly classified as a secured claim and overstated; and (iii) the Pyle Claim as being improperly classified as a secured claim and overstated.
5. Following the filing of the Objection, the Claimants, through counsel, provided the Reorganized Debtors with additional information regarding the amount of the claims, including details regarding accrued prepetition interest on the respective claims.
6. After negotiations, in the interest of resolving the Third Omnibus Objection with respect to the claims of the Claimants, the Reorganized Debtors and the Claimants have agreed as follows, with the provisions of this Stipulation effective and binding on each of the parties hereto upon Court approval of this Stipulation:
Stipulation
7. The Third Omnibus Objection shall be deemed withdrawn as to the claims of the Claimants.
8. The Dixie DLM Claim shall be disallowed in its entirety.
9. The Dixie GFH Claim shall be reclassified in its entirety as a general unsecured Class 8 claim. The Dixie GFH Claim shall further be reduced and allowed as a general unsecured Class 8 claim in the amount of $1,959,340.07, consisting of $1,300,000 in principal and $659,340.07 in accrued and unpaid prepetition interest.
10. The Pyle Claim shall be reclassified in its entirety as a general unsecured Class 8 claim. The Pyle Claim shall further be allowed as a general unsecured Class 8 claim in the amount of $917,127.20, consisting of $805,000 in principal and $112,127.70 in accrued and unpaid prepetition interest.
11. The Claimants shall have no further claims against the Debtors' bankruptcy estates and hereby waive any such other claims to the extent they exist.
Consent Order
NOW, THEREFORE, upon the consent of the parties hereto, the foregoing Stipulation is hereby APPROVED.
Certification
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.