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Non-Tech : Plasticon: Fact or Fiction - Discuss it here -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (158)	8/3/2007 4:25:41 AM
From: scion	Read Replies (1) \| Respond to of 191

Another Pacer update 02 Aug 07 Debtor Plasticon International, Inc. Bankruptcy Petition #: 07-50934-wsh Filing Date # Docket Text 08/02/2007 139 Objection Filed by Pro Plas LLC (RE: related document(s)113 Motion to Assume/Reject Leases or Executory Contracts, filed by Debtor Plasticon International, Inc.). (Case, E.) (Entered: 08/02/2007) IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF KENTUCKY LEXINGTON DIVISION In Re: ) Case No. 07-50934 Judge William S. Howard PLASTICON INTERNATIONAL, INC., ) Chapter 11 Debtor. OBJECTION TO DEBTOR’S MOTION FOR LEAVE TO ASSUME EXECUTORY INSURANCE CONTRACT WITH ANTHEM BLUE CROSS BLUE SHIELD AND SERVICE CONTRACT WITH IKON OFFICE SOLUTIONS Creditor Pro Plas, LLC, a Missouri limited liability company ("Pro Plas"), files this its Objection to Debtor’s Motion for Leave to Assume Executory Insurance Contract with Anthem Blue Cross Blue Shield and Service Contract with Ikon Office Solutions (“Objection to Debtor’s Motion”) in the above-entitled and numbered cause and in support thereof respectfully states the following: A. 1. Pro Plas admits the allegations contained in paragraph 1 of Debtor’s Motion. 2. Pro Plas admits that 11 U.S.C. §365(a) allows a debtor-in possession to assume or reject executory contracts or unexpired leases. Pro Plas is without sufficient knowledge to admit or deny the remaining allegations contained in Paragraph 2 and therefore deny the same. 3. Pro Plas is without sufficient knowledge to either admit or deny the allegations contained in paragraph 3 of Debtor’s Motion. 4. Pro Plas is without sufficient knowledge to either admit or deny the allegations contained in paragraph 4 of Debtor’s Motion. 5. Pro Plas denies the allegations contained in paragraph 6 of Debtor’s Motion. B. Answering further, Pro Plas states the following: 6. 11 U.S.C. §365(d)(2) provides: In a case under Chapter 9, 11, 12, or 13 of this title, the trustee may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor any time before the confirmation of a plan, but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. 7. The executory contracts should not be assumed until confirmation of a plan in this Chapter 11 case. 8. If the executory contracts are assumed at this time and the Chapter 11 reorganization case is later converted to a Chapter 7 liquidation case, the assumption will have an adverse impact on the creditors holding general unsecured claims. 9. The assumed executory contracts will be Chapter 11 administrative expense claims pursuant to 11 U.S.C. §503(b). 10. If the executory contracts are not assumed at this time and the Chapter 11 reorganization case is later converted to a Chapter 7 liquidation case, the executory contracts will be deemed to be prepetition general unsecured claims. 11. If the Chapter 11 reorganization case is converted to a Chapter 7 liquidation case: a. the Chapter 7 administrative expense claims will have priority over the Chapter 11 administrative expense claims pursuant to 11 U.S.C. Section 726(b). b. the Chapter 11 administrative expense claims will have priority over the general unsecured claims pursuant to 11 U.S.C. Section 507(a)(2). 12. Debtor’s assumption of the executory contract prior to the confirmation of a plan prejudices the creditors holding allowed general unsecured claims. WHEREFORE, Creditor Pro Plas, LLC, a Missouri limited liability company requests that the Court deny the Debtor’s Motion for Leave to Assume Executory Insurance Contract with Anthem Blue Cross Blue Shield and Service Contract with Ikon Office Solutions. STONE, LEYTON & GERSHMAN A Professional Corporation By: /s/ E. Rebecca Case E. Rebecca Case, EDMO #2800 Howard S. Smotkin, EDMO #4407 7733 Forsyth Boulevard, Suite 500 St. Louis, Missouri 63105 (314) 721-7011 (314) 721-8660 Facsimile erc@stoneleyton.com hss@stoneleyton.com Attorneys for Pro Plas, LLC CERTIFICATE OF SERVICE This is to certify that a true and correct copy of the foregoing document has been served electronically in the method established under CM/ECF Administrative Procedures Manual and the Local Court Standing Order dated July 25, 2002 via electronic and/or first class, postage prepaid U.S. mail on this 2nd day of August 2007. /s/ E. Rebecca Case E. Rebecca Case