Opinion
Case No. 01-6-4463 Case No. 01-6-4485
2012-01-19
In re: RAM WORKS CORPORATION., et al., Debtors.
Bridget Jarreau, Esquire Revenue Tax Specialist Supervisor Bankruptcy Section, Collections Division Louisiana Department of Revenue J. Daniel Vorsteg, Bar No. 26651 Whiteford, Taylor & Preston L.L.P. Counsel for the Debtors, Railworks Corporation, et al.
SO ORDERED
_________
DUNCAN W. KEER
U. S. BANKRUPTCY JUDGE
Jointly Administered under Case No. 01-6-4463
STIPULATION AND CONSENT ORDER RESOLVING
DEBTORS' OBJECTION TO CERTAIN CLAIMS FILED
BY THE LOUISIANA DEPARTMENT OF REVENUE
(Claim Nos. 2898, 3162, 3163, 3164, 3175, 3176, 3194,
3195, 3196, 3197, 3198, 3221, 3222, 3456, 3457 and 3460)
Railworks Corporation, et al., the above-captioned reorganized debtors (collectively, the "Debtors"), and the Louisiana Department of Revenue (the "LDR") hereby stipulate and agree as follows:
WHEREAS, on September 20, 2001 (the "Petition Date"), Railworks Corporation ("Railworks") and 22 of its affiliates filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Dura Wood, LLC ("Dura-Wood"), proof of claim number 2898 ("Claim No. 2898"), asserting a claim in the amount of $50.00 for sales taxes allegedly owed by Dura-Wood to the LDR. Claim No. 2898 was paid by the Debtors on or about 07/25/2005.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Railworks Track Services, Inc. ("Track Services"), proof of claim number 3162 ("Claim No. 3162"), asserting a claim in the amount of $523.64 for withholding taxes and corporate income and franchise taxes allegedly owed by Track Services to the LDR. Claim No. 3162 was subsequently amended by proof of claim number 3457 ("Claim No. 3457"). Claim No. 3457 was satisfied by the Debtor's payment pursuant to the Louisiana Tax Delinquency and Amnesty Act of 2009 (the "Amnesty Act") and subject to the terms and conditions of the Amnesty Act.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Railworks Wood Products, Inc. ("Wood Products"), proof of claim number 3163 ("Claim No. 3163"), asserting a claim in the amount of $261.67 for corporate income and franchise taxes allegedly owed by Wood Products to the LDR. Claim No. 3163 was paid by the Debtors on or about 07/13/2005.
WHEREAS, the LDR filed a proof of claim in the case of Debtor HSQ Technology Corporation ("HSQ"), proof of claim number 3164 ("Claim No. 3164"), asserting a claim in the amount of $257.76 for corporate income and franchise taxes allegedly owed by HSQ to the LDR. Claim No. 3164 was paid by the Debtors on or about 03/20/2006.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Neosho Construction Company ("Neosho"), proof of claim number 3175 ("Claim No. 3175"), asserting a claim in the amount of $616,169 for withholding taxes and sales taxes allegedly owed by Neosho to the LDR. Claim No. 3175 was amended by claim 3456, and that portion of Claim No. 3456 asserting withholding taxes owed by Neosho was satisfied by the Debtor's payment pursuant to the Amnesty Act (the "Amnesty Payment") and subject to the terms and conditions of the Amnesty Act. Claim No. 3456 was withdrawn by the LDR only to the extent it erroneously asserted sales taxes were due. The Debtor and the LDR agree that the $1,285.16 for the withholding tax portion of the claim was owed and was satisfied by the Amnesty Payment.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Railworks Track Systems, Inc. ("Track Systems"), proof of claim number 3176 ("Claim No. 3176"), asserting a claim in the amount of $261.67 for withholding taxes and corporate income and franchise taxes allegedly owed by Track Systems to the LDR. Claim No. 3176 was amended by proof of claim number 3222 ("Claim No. 3222). Claim No. 3222 was withdrawn by the LDR on or about 05/05/2003.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Wood Waste Energy, Inc. ("Wood Waste"), proof of claim number 3194 ("Claim No. 3194"), asserting a claim in the amount of $100.00 for certain taxes allegedly owed by Wood Waste to the LDR. Claim No. 3194 was withdrawn by the LDR on or about 01/21/2003.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Railworks, proof of claim number 3195 ("Claim No. 3195"), asserting a claim in the amount of $291.46 for corporate income and franchise taxes allegedly owed by Railworks to the LDR. Claim No. 3195 was satisfied by the Debtor's payment pursuant to the Amnesty Act and subject to the terms and conditions of the Amnesty Act.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Railworks Track Systems Texas, L.P. ("TS-Texas"), proof of claim number 3196 ("Claim No. 3196"), asserting a claim in the amount of $13,655.76 for sales taxes allegedly owed by TS-Texas to the LDR. Claim No. 3196 was paid by the Debtors on or about 03/20/2006.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Neosho, proof of claim number 3197 ("Claim No. 3197"), asserting a claim in the amount of $2,776.77 with respect to corporate income and franchise taxes allegedly owed by Neosho to the LDR. Claim No. 3197 was amended on or about 03/27/2006 and satisfied by the Debtor's payment pursuant to the Amnesty Act and subject to the terms and conditions of the Amnesty Act.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Dura-Wood, proof of claim number 3198 ("Claim No. 3198"), asserting a claim in the amount of $50.00 for sales taxes allegedly owed by Dura-Wood to the LDR. Claim No. 3198 is an inadvertent duplicate of Claim No. 2898 and the parties agree that Claim 3198 should be disallowed.
WHEREAS, the LDR filed a proof of claim in the case of Debtor Advanced Railroad Specialties, Inc. ("Advanced"), proof of claim number 3221 ("Claim No. 3221"), asserting a claim in the amount of $138.07 for corporate income and franchise taxes allegedly owed by Advanced to the LDR. Claim No. 3221 was subsequently amended by proof of claim number 3460 ("Claim No. 3460"). Claim No. 3460 was satisfied by the Debtor's payment pursuant to the Amnesty Act and subject to the terms and conditions of the Amnesty Act.
WHEREAS, on October 30, 2003, the Debtors filed their Amended Fourth Omnibus Objection to Allowance of Certain Claims which included an objection to Claim Nos. 2898, 3162, 3163, 3164, 3175, 3176, 3194, 3195, 3196, 3197, 3198, 3221 and 3222 (collectively the "Claims") on the grounds that the Claims were either overstated or paid, and should be reduced or disallowed in full.
WHEREAS, the LDR has withdrawn Claim No. 3456 except to the extent that the withholding tax portion of that claim was paid by the Debtor pursuant to the Amnesty Act.
WHEREAS, the LDR did not file a proof of claim numbered 3075 ("Claim No. 3075") in the Claims Registry, and this claim was filed by the Louisiana Department of Labor which the LDR does not and cannot represent on this claim.
WHEREAS, the Debtors and the LDR have agreed that Claim Nos. 3162, 3175, 3176, 3194, 3198, 3221 and 3222 should be disallowed in full.
WHEREAS, the Debtors and the LDR have agreed that Claim Nos. 2898, 3163, 3164 and 3196 were paid by the Debtors and should be expunged from the Claims Registry on the basis of Debtors' payment.
WHEREAS, the Debtors and the LDR have further agreed that Claim Nos. 3195, 3197 (as amended), 3457 and 3460 have been satisfied by the Debtors' payment pursuant to the Amnesty Act and subject to the terms and conditions of the Amnesty Act and should be expunged from the Claims Registry on the basis of that payment.
NOW, THEREFORE, it is, by the United States Bankruptcy Court for the District of Maryland
ORDERED, that Claim Nos. 3162, 3175, 3176, 3194, 3198, 3221 and 3222 are disallowed in full.
ORDERED, that Claim No. 3456 is hereby disallowed except to the extent that the withholding tax portion of that claim was paid by the Debtor pursuant to the Amnesty Act and subject to the terms and conditions of the Amnesty Act.
ORDERED, that Claim Nos. 3195, 3197 (as reduced), 3457 and 3460 are expunged from the Claims Registry on the basis of the respective Debtor's payment pursuant to the Amnesty Act and subject to the terms and conditions of the Amnesty Act.
ORDERED, that Claim Nos. 2898, 3163, 3164 and 3196 are hereby expunged from the Claims Registry on the basis of the respective Debtor's payment in full.
STIPULATED AND AGREED TO:
_________
Bridget Jarreau, Esquire
Revenue Tax Specialist Supervisor
Bankruptcy Section, Collections Division
Louisiana Department of Revenue
_________
J. Daniel Vorsteg, Bar No. 26651
Whiteford, Taylor & Preston L.L.P.
Counsel for the Debtors,
Railworks Corporation, et al.
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.
_________
J. Daniel Vorsteg
End of Order
cc:
J. Daniel Vorsteg, Esquire
Whiteford, Taylor & Preston L.L.P.
Seven Saint Paul Street
Baltimore, Maryland 21202
Bridget Jarreau, Esquire
Revenue Tax Specialist Supervisor
Bankruptcy Section, Collections Division
Louisiana Department of Revenue
617 North Third Street, 6th Floor
P.O. Box 66658
Baton Rouge, LA 70896-6658
Office of the U.S. Trustee
101 W. Lombard Street
Suite 2625
Baltimore, MD 21201
1880555