Opinion
Case #01-72167-DHA, APN 04-07077.
September 21, 2004
R. Clinton Stackhouse, Jr., Chapter 7 Trustee.
Cecelia Ann Weschler Office of the U.S. Trustee,
Jeremy M. Campana, Esquire, Attorney for Spartan International, Inc.
ORDER APPROVING COMPROMISE
THIS MATTER came before the Court upon the Chapter 7 Trustee's Application for Approval of Compromise, and based upon the representations of the Trustee, it appears to the Court and the Court finds as follows:
1. R. Clinton Stackhouse, Jr., ("Trustee") was appointed Chapter 7 Trustee in this case and is presently serving.
2. Trustee filed a Complaint initiating this adversary proceeding which sought to avoid an alleged preferential payment to Spartan International, Inc., in the amount of $17,899.87.
3. Trustee settled this and similar litigation using the following general approach:
(a) Trustee offered this settlement only where he deemed it appropriate to effect a quick, certain resolution rather than prolonged litigation with its inherent risk cost and delay;
(b) Where applicable, demonstrated new value was subtracted from the amount claimed by Trustee on a dollar for dollar basis, assuming such new value was demonstrated to the satisfaction of Trustee;
(c) On account of defenses asserted under 11 U.S.C. § 547 as well as the general factors listed in Paragraph 3(a) a 50% discount was given against the amount claimed by Trustee after any new value credit;
(d) Payment of the discounted amount must be paid within 30 days of any order approving the particular settlement;
(e) After receiving the negotiated amount, Trustee will dismiss with prejudice each case settled in this manner;
4. Additional or more specific terms to this particular settlement are set forth in the attached Exhibit A.
5. Notice of this settlement was sent on August 6, 2004 to all creditors and parties in interest allowing 20 days to object to or request a hearing upon the proposed settlement and no objection to this settlement has been filed with the Court or received by Trustee.
6. The amount of the compromise figure in this adversary proceeding, to be paid by the Defendant, Spartan International, Inc., within 30 days of the entry of this Order is $1,214.35.
7. The defendant by its signature hereby accepts the courts jurisdiction over the parties to this adversary proceeding and consents to the agreement set forth herein.
It is therefore ADJUDGED, ORDERED and DECREED that the compromise as described hereinabove is approved, the parties shall promptly and timely abide by terms of the compromise as set forth herein, and the Trustee is authorized to proceed as set forth above; and
It is FURTHER ORDERED that copies of this order, when entered, be sent to R. Clinton Stackhouse, Jr., Esq., P.O. Box 3640, Norfolk, VA 23514; Cecelia Ann Weschler, Esq., 200 Granby Street, Room 625, Norfolk, VA 23510; and to Jeremy M. Campana, Esq., Thompson Hine, LLP, 127 Public Square, 3900 Key Center, Cleveland, Ohio, 44114.
EXHIBIT A
August 27, 2004
R. Clinton Stackhouse, Jr. Stackhouse, Smith and Nexsen 1600 First Virginia Tower 555 East Main Street P.O. Box 3640 Norfolk, VA 23514
RE: Trak Auto — Spartan International, Inc. ("Spartan") Adv. Pro. 04-07077 Your File No. 12900
Dear Clinton:
This letter, which is subject to bankruptcy court approval, confirms that Spartan International, Inc. agrees to pay $1,214.35 (the "Settlement Payment) to R. Clinton Stackhouse, Jr., as trustee in the Chapter 11 case of Trak Auto Corporation (the "Trustee"). The Settlement Payment shall be made to the Trustee upon receipt of an order approving the settlement of this matter.
In exchange for the Settlement Payment, the Trustee agrees to dismiss the above-referenced adversary proceeding with prejudice and release any and all claims, whether contingent, liquidated, unliquidated, known or unknown against Spartan.
Further, the Trustee agrees that Spartan shall have an allowed $1,214.35 general unsecured claim, in addition to any other claim it may have, in the Chapter 11 case of Trak Auto Corporation. Spartan and the Trustee agree that this letter contains the entire understanding between the parties.
Agreed and accepted to:
R. Clinton Stackhouse, Jr. Jeremy M. Campana VSB 19358 OSB 0074548 Stackhouse, Smith and Nexsen Thompson Hine LLP P.O. Box 3640 127 Public Square, 3900 Key Center Norfolk, VA 23514 Cleveland, OH 44114 Phone: (757) 623-3555 Phone: (216) 566-5500.
Counsel to the Chapter 7 Trustee Counsel to Spartan International, Inc.