Opinion
Case No. 04-13819 Jointly Administered.
November 19, 2004.
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., Michael J. Canning, Esq., ARNOLD PORTER LLP, Denver, Colorado, and Washington, DC, and New York, New York.
Lawrence E. Rifken, Esq., Douglas M. Foley, Esq., David I. Swan, Esq., McGUIREWOODS LLP, McLean, Virginia, Counsel to the Debtors and Debtors-in-Possession.
Neil J. Orleans, Esq., GOINS, UNDERKOFLER, CRAWFORD LANGDON, Dallas, Texas and Alan Rosenblum, Esq., ROSENBLUM ROSENBLUM, L.L.C., Alexandria, Virginia, Counsel to Aviall Services, Inc.
STIPULATION AND CONSENT ORDER AUTHORIZING AVIALL SERVICES, INC. TO SETOFF PRE-PETITION CLAIMS UNDER 11 U.S.C. §§ 105, 362 AND 553
The Debtors and debtors-in-possession in the above-captioned cases (collectively, the "Debtors"), and Aviall Services, Inc. ("Aviall"), by and through their undersigned counsel, hereby stipulate and agree as set forth below with respect to the motion ("Motion") filed October 22, 2004, wherein Aviall moved this Court for entry an Order, pursuant to §§ 105 and 553(a) of the Bankruptcy Code, authorizing Aviall to setoff pre-petition obligations owed by Aviall to the Debtors against pre-petition obligations owed by the Debtors to Aviall; and the Court finding that (i) it has jurisdiction over the matters raised in the Motion pursuant to 28 U.S.C. §§ 157 and 1334; (ii) this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); (iii) the relief requested in the Motion is in the best interest of the Debtors, their estates and their creditors; (iv) proper and adequate notice of the Motion and the hearing thereon has been given and no other further notice is necessary and (v) upon the record herein after due deliberation thereon good and sufficient cause exists for the granting of said relief as set forth herein. Therefore,
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
1. The Motion is GRANTED.
2. Aviall be and is hereby authorized, pursuant to §§ 105, 362 and 553(a) of the Bankruptcy Code, to setoff pre-petition obligations owed by it against pre-petition obligations owed by the Debtors as follows: the sum of $12,332.00 owed pre-petition by Aviall to Debtor Piedmont Airlines, Inc. ("Piedmont") may be setoff against the pre-petition obligations owed by Piedmont to Aviall of $18,214.71, reducing the pre-petition balance owed to Aviall from Piedmont to $5,882.71.
3. Aviall be and is hereby authorized, pursuant to §§ 105, 362 and 553(a) of the Bankruptcy Code, to setoff pre-petition obligations owed by it against pre-petition obligations owed by the Debtors as follows: the sum of $52,805.91 owed pre-petition by Aviall to Debtor PSA Airlines, Inc. ("PSA") may be setoff against the pre-petition obligations owed by PSA to Aviall of $137,364.45, reducing the pre-petition balance owed to Aviall from PSA to $84,558.54.