Opinion
Case No. 09-17787 (DWK)
2012-07-27
In re: TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al., Debtors.
SO ORDERED
______________________
U. S. BANKRUPTCY JUDGE
Chapter 11
(Jointly Administered)
STIPULATION AND CONSENT ORDER CONTINUING DEADLINE FOR THE FILING OF
OBJECTIONS TO CHAPTER 11 TRUSTEE'S MOTION PURSUANT TO SECTION 506(c)
WHEREAS, on May 9, 2012, the Court held a status conference (the "Status Conference") in Credit Suisse Securities (USA) LLC, as Collateral Agent v. TMST, Inc., et al., AP No. 09-00574 (DWK) (Bankr. D. Md. Aug. 28, 2009) (the "Adversary Proceeding");
WHEREAS, at the Status Conference, the parties agreed that Joel I. Sher, Chapter 11 Trustee (the "Trustee"), would file a motion pursuant to section 506(c) of 11 U.S.C. §§ 101 et seq. (the "Bankruptcy Code") for any costs and expenses that the Trustee seeks to recover against property determined in the Adversary Proceeding to be the collateral of Credit Suisse Securities (USA) LLC, Credit Suisse International, UBS AG (as successor to UBS Securities, LLC), Citigroup Global Markets, Ltd., JPMorgan Chase Funding Inc. (as successor to Bear Stearns Investment Products Inc.), Royal Bank of Scotland plc, RBS Securities Inc. (f/k/a Greenwich Capital Markets, Inc.), and Greenwich Capital Derivatives (collectively, the "Counterparties");
WHEREAS, Credit Suisse Securities (USA) LLC initiated and prosecuted the Adversary Proceeding as Collateral Agent on behalf of the Counterparties (the "Collateral Agent");
WHEREAS, on May 21, 2012, the Court entered an Order Setting Deadline for the Trustee to File 506(c) Motion (the "Preliminary Scheduling Order"), [No. 09-17787, D.I. 1578], providing "that if the Trustee files such a motion under Section 506(c), and there is any objection or response thereto, then the opposing parties shall consult and file such report as would be appropriate if the contested matter were an adversary proceeding and therefore Federal Rule [] 26(f) will apply to this matter. Such report shall include a proposed schedule";
WHEREAS, on May 31, 2012, the Trustee filed the Chapter 11 Trustee's Motion Pursuant to Section 506(c) (the "Motion"), [No. 09-17787, D.I. 1583];
WHEREAS, on June 13, 2012, the Court entered a Stipulation and Consent Order Setting Deadline for the Filing of Objections to Chapter 11 Trustee's Motion Pursuant to Section 506(c), [No. 09-17787, D.I. 1596], providing that "the deadline for the Collateral Agent and the Counterparties to file objections to the Motion shall be July 2, 2012";
WHEREAS, on June 29, 2012, the Court entered a Stipulation and Consent Order Resetting Deadline for the Filing of Objections to Chapter 11 Trustee's Motion Pursuant to Section 506(c), [No. 09-17787, D.I. 1610], providing that "the deadline for the Collateral Agent and the Counterparties to file objections to the Motion shall be July 16, 2012";
WHEREAS, on July 16, 2012, the Bankruptcy Court entered a Stipulation and Consent Order Resetting Deadline for the Filing of Objections to Chapter 11 Trustee's Motion Pursuant to 506(c), providing that the deadline for the Collateral Agent and the Counterparties to file objections to the Motion to Surcharge shall be July 30, 2012;
WHEREAS, the parties to the Adversary Proceeding, as well as the Counterparties, have agreed to the terms of a settlement of all litigation pending in the Adversary Proceeding (the "Proposed Settlement Agreement"), for which a motion seeking approval of the Proposed Settlement Agreement has been filed with the Court, [No. 09-17787, D.I. 1628];
WHEREAS, pursuant to the Proposed Settlement Agreement, the Collateral Agent, the Counterparties and the Trustee have agreed to a (60) day continuance of the July 30, 2012 deadline for filing objections to the Motion, to enable the parties to: (i) present to the Court the Proposed Settlement Agreement; and (ii) resume negotiations related to the Motion, with goal of resolving either all or some portion of the Trustee's claims therein;
WHEREAS the parties continue to reserve all rights, including (but not limited to) any argument as to the standing of any party to file an objection to the Motion;
IT IS HEREBY STIPULATED, AGREED AND ORDERED that
(1) the deadline for the Collateral Agent and the Counterparties to file objections to the Motion shall be Friday, September 28, 2012; and
(2) in accordance with the Preliminary Scheduling Order, if any objection(s) to the Motion is/are filed, the Trustee and any objector(s) will consult and file a report in accordance with Rule 26(f) of the Federal Rules of Civil Procedure, including a proposed schedule.
WHITEFORD TAYLOR PRESTON LLP
______________________
John F. Carlton (Bar No. 06591)
Todd M. Brooks (Bar No. 28515)
Seven Saint Paul Street
Baltimore, Maryland 21202-1636
jcarlton@wtplaw.com
tbrooks@wtplaw.com
- and
Douglas K. Mayer, Esquire
David C. Bryan, Esquire
A.J. Martinez, Esquire
WACHTELL, LIPTON, ROSEN & KATZ
51 West 52nd Street
New York, New York 10019
dkmayer@wlrk.com
dcbryan@wlrk.com
ajmartinez@wlrk.com
Counsel for Credit Suisse Securities (USA) LLC,
Collateral Agent
SHAPIRO SHER GUINOT & SANDLER
______________________
Joel I. Sher (Bar No. 00719)
Richard M. Goldberg (Bar No. 07994)
Daniel J. Zeller (Bar No. 28107)
36 South Charles Street, 20th Floor
Baltimore, Maryland 21201
jis@shapirosher.com
rmg@shapirosher.com
djz@shapirosher.com
Counsel to Joel I. Sher, Chapter 11 Trustee