In re Service Merchandise Company, Inc.

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

Court: United States Bankruptcy Court, M.D. Tennessee, Nashville Division

Date published: Feb 14, 2003

Case No. 399-02649, Jointly Administered (Bankr. M.D. Tenn. Feb. 14, 2003)

Opinion

Case No. 399-02649, Jointly Administered

February 14, 2003

Paul G. Jennings, Beth A. Dunning, BASS, BERRY SIMS, PLC, Nashville, TN, and John Wm. Butler, Jr., George N. Panagakis, SKADDEN, ARPS, SLATE, MEAGHER FLOM, Chicago, IL, Attorneys for Debtors and Debtors-in-Possession.

Robert H. Waldschmidt, Howell Fisher, PLLC, Nashville, TN, and Samuel R. Grafton, Popper Grafton, New York, NY, Attorneys for the Claimant.

AGREED ORDER RESOLVING CONTESTED CLAIM NOS. 1641 AND 3593 FILED BY THE GILLETTE COMPANY, INC.

GEORGE C. PAINE, II, United States Bankruptcy Judge.

Upon the Omnibus Objection to certain claims (Docket No. 6373) (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. 6552) (the "Response"), filed by The Gillette Company, Inc. (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 Nos. 1641 and 3593 (the "Claim") filed by the Claimant on the terms set forth in this Agreed Order and any additional terms set forth in the Settlement Letter Agreement between the Debtors and the Claimant dated September 25, 2002; and the Court being otherwise sufficiently advised, it is hereby

ORDERED, ADJUDGED AND DECREED:

1. Claim No. 1641 shall be and hereby is ALLOWED as allowed general prepetition non-priority unsecured claim in the amount of $600,000.00 (the "Allowed Amount") against Service Merchandise Company, Inc. in Case No. 399-02649.

2. Claim No. 1641 shall be and hereby is DISALLOWED to the extent it exceeds the Allowed Amount.

3. Claim No. 3595 shall be and hereby is DISALLOWED in its entirety.

4. 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.

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