Opinion
Case No. 399-02649 Jointly Administered.
September 16, 2004
Paul G. Jennings, Beth A. Dunning, BASS, BERRY SIMS PLC, Nashville, TN.
John Wm. Butler, Jr., George N. Panagakis, SKADDEN, ARPS, SLATE, MEAGHER FLOM (ILLINOIS), Chicago, IL, Attorneys for Reorganized Debtors.
J. Dimmitt Smith, Graham Dunn PC, Seattle, WA, Attorney for the Claimant.
Upon Service Merchandise Company, Inc. ("Service Merchandise") and 31 of its affiliates (the "Affiliate Debtors"), reorganized debtors in the above-captioned cases (Service Merchandise and the Affiliate Debtors collectively, the "Reorganized Debtors") and The Lane Company (the "Claimant) having agreed, as signified by the signatures of counsel below, to amend the prior Agreed Order Allowing in Part and Disallowing in Part Claim Nos. 3799 and 5111 filed by the Lane Company (Docket No. 8805) (the "Prior Order") and to resolve Claim Nos. 3799 and 5111 (the "Claims") filed by the Claimant on the terms set forth in this Agreed Order; and the Claims having been resolved as part of an agreement to resolve Adversary Proceeding Number 304-0447A filed against the Claimant and The Principal Life Insurance Company by the Reorganized Debtors; and the Court being otherwise sufficiently advised, it is hereby
ORDERED, ADJUDGED AND DECREED:
1. The terms of the Prior Order are hereby amended by the terms of this Agreed Order and, to the extent the terms of this Agreed Order and the Prior Order conflict, the terms of this Agreed Order shall be controlling.
2. Claim No. 3799 shall be and hereby is ALLOWED as a general prepetition non-priority unsecured claim in the amount of $16,374.14 against Service Merchandise Company, Inc. in Case No. 399-02649. Claimant shall retain the prior distribution made on account of this claim and shall continue to receive subsequent distribution on this allowed amount.
3. Claim No. 5111 shall be and hereby is ALLOWED as an administrative priority claim in the amount of $23,000.00 against Service Merchandise Company, Inc. in Case No. 399-02649; the remainder of Claim No. 5111 is hereby DISALLOWED. The Reorganized Debtors and the Claimant acknowledge that this priority claim has been satisfied, that the Claimant is entitled to retain the payments made on account of this priority claim, and that the Reorganized Debtors have no future obligations on account of this priority claim.
4. The remainder of Claim Nos. 3799 and 5111 are hereby DISALLOWED to the extent they exceed the amounts listed in Paragraphs 2 and 3 of this Order.
5. All future distributions on account of the Claims shall be made upon the terms contained herein.
6. All distributions on account of the claim allowed by this Order are governed by the terms of the Reorganized Debtors' confirmed chapter 11 plan, and any other actions to collect or enforce the claim allowed in the Order and/or any other claims against the Reorganized Debtors or against the assets of the Reorganized Debtors or any affiliate or insider of the Reorganized Debtors are prohibited by the plan and confirmation order entered May 13, 2003.
7. The Claimant shall have no other claims, whether secured, unsecured, prepetition, postpetition, administrative, priority or otherwise against the Debtors or their estates.