01/15/2008 354 Agreed Order on Motion for Relief from Stay filed by Pro Plas LLC (RE: related document(s)83 Motion for Relief From Stay filed by Creditor Pro Plas LLC). (baa) (Entered: 01/15/2008)
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Doc 354
In Re:
Case No. 07-50934
Judge William S. Howard
Chapter 11
PLASTICON INTERNATIONAL, INC.
Debtor.
PRO PLAS LLC,
Movant,
v.
PLASTICON INTERNATIONAL, INC.
Respondent
AGREED FINAL ORDER ON MOTION FOR RELIEF FROM AUTOMATIC STAY FILED BY PRO PLAS LLC
On the 10th day of January 2008, came on to be heard the Motion for Relief from Automatic Stay filed by Pro Plas LLC, a Missouri limited liability company (“Pro Plas”)(“Motion”),(D.E. #83) filed in the above-styled and numbered case. The Court finds that all parties received notice as required by law of the filing of the Motion (D.E. #83), the hearing thereon on November 19, 2007, the Court’s Order on the Motion (“Order”)(D.E. #330), the Motion for Immediate Relief Pursuant to Order on Motion for Relief (D.E. #334), the hearing
thereon on December 20, 2007, and the Court’s Order thereon. Further, the Court finds the parties have agreed as follows:
Jurisdiction and Bankruptcy Filing
1. The Court has jurisdiction regarding this matter pursuant to 28 U.S.C. §1334 and 28 U.S.C. §157 and the Local Rules for the United States District Court for the Eastern District of Kentucky.
2. This matter is a core proceeding pursuant to 28 U.S.C. §157(b)(2)(D).
3. On May 16, 2007 Debtor Plasticon International, Inc. (“Debtor Plasticon”), filed its Voluntary Chapter 11 Petition for Relief in the United States Bankruptcy Court for the Eastern District of Kentucky, Lexington Division (“Court”).
4. Debtor Plasticon continued to operate its business and manage its financial affairs pursuant to Sections 1107 and 1108 of the Bankruptcy Code from May 16, 2007 until October 3, 2007, under the control of James N. Turek, Sr., Debtor Plasticon’s President.
5. On October 3, 2007, this Court ordered the Appointment of a Chapter 11 Trustee. The Office of the United States Trustee appointed Stephen Palmer to serve as the Chapter 11
Trustee (“Trustee”).
6. Even with the appointment of a Chapter 11 Trustee, Debtor Plasticon continues to struggle and its financial condition continues to decline.
December 6, 2007 Order (D.E. #330)
7. On December 6, 2007 the Court signed and the Clerk entered the Order on Motion for Relief from Automatic Stay filed by Pro Plas (“Order”)(D.E. #330) and the Order is incorporated herein by reference.
December 20, 2007
8. The Court denied Pro Plas’ request for immediate relief from the automatic stay of 11 U.S.C. Section 362 but authorized the Murphy Entities to publish the notice of foreclosure in January 2008.
Compromise and Settlement Agreement
9. The parties entered into a Compromise and Settlement Agreement filed on January 4, 2008 and incorporated herein by reference in its entirety (the “Agreement”).
10. The Agreement was also filed in Debtor Pro Mold, Inc.’s bankruptcy case (USBC-EDKY Case No. 07-50935).
Agreed Final Order On Motion For Relief From Automatic Stay Filed By Pro Plas LLC, John P. Murphy III Revocable Trust No. 1, 10315 LLC And John P. Murphy (Pro Mold D.E. #346)
11. On January 10, 2008 the Court signed and the Clerk entered the Agreed Final Order on Motion for Relief From Automatic Stay filed by Pro Plas LLC, John P. Murphy III Revocable Trust No. 1, 10315 LLC and John P. Murphy (collectively the “Murphy Entities”)(Pro Mold D.E. #346).
12. The Agreed Order on Motion for Relief from Automatic Stay in Debtor Pro Mold’s case is incorporated herein by reference.
Agreed Final Order On Motion For Relief From Automatic Stay Filed By Pro Plas, LLC
13. Pro Plas is not granted relief from the automatic stay to foreclose its security interest in Pro Mold Stock Certificate No. 4 representing one thousand (1,000) shares of common stock of Debtor Pro Mold.
14. The holder of Pro Mold Stock Certificate No. 4 will surrender Pro Mold Stock Certificate No. 4 representing one thousand (1,000) shares of common stock of Debtor Pro Mold to Chapter 11 Trustee Stephen Palmer pursuant to the terms of the Agreement.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED THAT,
A. Concurrently with the granting of relief from the automatic stay in Debtor Pro Mold’s case to the Murphy Entities, the Court hereby grants consistent relief from the automatic stay in this case to Pro Plas LLC.
B. The Agreed Order on Motion for Relief from Automatic Stay in Debtor Pro Mold’s case (Pro Mold D.E. #346) shall be and is hereby incorporated herein by reference.
C. Pro Plas LLC shall not foreclose its security interest in Pro Mold Stock Certificate No. 4 representing one thousand (1,000) shares of common stock of Debtor Pro Mold.
D. Pro Plas LLC or the holder of Pro Mold Stock Certificate No. 4 shall surrender Pro Mold Stock Certificate No. 4 representing one thousand (1,000) shares of common stock of Debtor Pro Mold to Chapter 11 Trustee Stephen Palmer pursuant to the terms of the Agreement.
E. Oral findings of fact and conclusions made by the Court at the hearing are incorporated herein by reference in their entirety.
F. The automatic stay shall be and is hereby terminated as described in the Agreed Order on Motion for Relief from Automatic Stay in Debtor Pro Mold’s case (Pro Mold D.E. #346) and as described hereinabove.
AGREED TO AND TO BE ENTERED:
/s/ E. Rebecca Case
E. Rebecca Case
Howard S. Smotkin
STONE, LEYTON & GERSHMAN
A Professional Corporation
7733 Forsyth Boulevard, Suite 500
St. Louis, Missouri 63105
(314) 721-7011
(314) 721-8660 Facsimile
rcase@stoneleyton.com
Attorneys for Pro Plas LLC
/s/ Elizabeth Lee Thompson
Elizabeth Lee Thompson
Stites & Harbison
250 West Main
2300 Lexington Financial Center
Lexington, Kentucky 40507
(859) 226-2389
ethompson@stites.com
Attorneys for Chapter 11 Trustee Kenneth Henry
/s/ Stephen Barnes
Jonathan L. Gay
Stephen Barnes
Walther, Roark, Gay & Todd, PLC
163 East Main Street, Suite 200
Lexington, Kentucky 40588-1598
(859) 225-4714
jgay@wrgfirm.com
Attorneys for Chapter 11 Trustee Stephen Palmer
Pursuant to Local Rule 9022-1(c), E. Rebecca Case shall cause a copy of this order to be served on each of the parties designated to receive this order pursuant to Local Rule 9022-1(a) and shall file with the court a certificate of service of the order upon such parties within ten (10) days hereof.
Plasticon International, Inc.
Attorney for Debtor
Office of the U.S. Trustee
Eric Assouline
Gregory R. Schaaf
Attorney for Official Unsecured Creditors’ Committee in Plasticon International, Inc.
Kenneth C. Henry
Attorney for Pro Mold Chapter 11 Trustee
Steven Palmer
Attorney for Plasticon Chapter 11 Trustee
Master Service List No. 2
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The affixing of this Court's electronic seal below is proof this document has been signed by the Judge and electronically entered by the Clerk in the official record of this case.
Signed By:
William S. Howard
Bankruptcy Judge
Dated: Tuesday, January 15, 2008
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