08/27/2007 173 Response Filed by Official Committee of Unsecured Creditors (RE: related document(s)168 Application to Employ). (Langdon, Dean) (Entered: 08/27/2007)
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Doc 173
IN RE:
CHAPTER 11
PLASTICON INTERNATIONAL, INC. CASE NO. 07-50934
DEBTOR
RESPONSE TO APPLICATION TO EMPLOY FOWLER, MEASLE & BELL PLLC
Comes the Official Committee of Unsecured Creditors (the “Committee”), by its proposed counsel, and for its response to the Application to Employ Fowler, Measle & Bell PLLC as attorneys for Debtor (the “Application”) [Doc. No. 168], states as follows:
BACKGROUND AND JURISDICTION
1. On or about May 16, 2007, Plasticon International Inc. (“Debtor”) filed a petition of relief under Chapter 11 of the Bankruptcy Code in United States Bankruptcy Court for the Eastern District of Kentucky, Lexington Division. The Debtor is operating its business as a debtor-in-possession pursuant to 11 U.S.C. §§ 107(a) and 1108.
2. This Court has jurisdiction over the Application pursuant to 28 U.S.C. § 1334, and it is a core proceeding under 28 U.S.C. § 157(b)(2)(A). Venue is proper in this district pursuant to 28 U.S.C. § 1408 and 1409.
3. Simultaneously with the filing of the Debtor’s petition, its wholly owned subsidiary, Pro Mold Inc.(“Pro Mold”), filed a petition for relief under Chapter 11 of the Bankruptcy Code, Case No: 07-50935 in this Court.
4. On or about June 18, 2007 the Court overruled a Motion for Joint Administration of the cases of the Debtor and Pro Mold [Doc. No. 74].
5. On or about June 26, 2007 the Office of the United States Trustee filed a Notice of a Reconstituted Unsecured Creditors Committee [Doc. No. 84]. Shortly thereafter, on July 11, 2007 the firm of Wise DelCotto PLLC (the “Firm”) applied to be employed as counsel for the Committee [Doc. No. 102]. Objections to the Firm’s Application were filed by the United States Trustee [Doc. No. 121] and Pro Plas, LLC [Doc. No. 122]. The issues raised by the objections included a potential conflict of interest of a partner of the Firm and the Firm’s request for payment of a retainer to counsel for the Committee.
6. The Court conducted a hearing on the Wise DelCotto Application on August 6, 2007, and allowed the parties additional time to submit information relevant to the Wise DelCotto Application.
7. In the interim, Wise DelCotto and the Office of the United States Trustee have resolved the objection of the U.S. Trustee’s office. (A copy of the Agreed Order resolving the objection of the United States Trustee is attached as Exhibit A).
8. However, the parties have been unable to resolve the Pro Plas objection to Wise DelCotto’s request for a retainer, nor have Wise DelCotto or the Committee been able to identify a source for payment of the requested retainer.
9. Although an official committee of unsecured creditors was appointed in the Pro Mold case [Doc. No. 91], that committee was disbanded [Doc. No. 131].
OBJECTION
10. The Committee does not object to the retention of Fowler, Measle & Bell as counsel for the Debtor and Debtor-in-Possession.
11. The Committee is advised, and does believe, that Debtor’s prior counsel, Wyatt, Tarrant & Combs, holds a retainer in the approximate amount of $55,000, as set forth in that firm’s application to be employed [Doc. No. 8]. The Application of Fowler, Measle & Bell requests Debtor’s former counsel to turn over any remaining retainer to Fowler, Measle & Bell. The Committee files this response to note its concurrence with this request, and to further assert that any retainer turned over from the firm of Wyatt, Tarrant & Combs should be preserved for the benefit of both counsel for the Debtors and counsel for the Committee.
WHEREFORE, the Official Committee of Unsecured Creditors of Plasticon International Inc. respectfully requests that the Application of Fowler, Measle & Bell to be employed as attorneys for the Debtor be granted, that any order approving said Application require that the firm of Wyatt, Tarrant & Combs account for and deliver to Fowler, Measle & Bell any retainer in its possession, and that any funds so delivered to Fowler, Measle & Bell be maintained in an escrow account for the benefit of counsel for the Debtors and counsel for the Committee.
NOTICE
Notice is hereby given that the foregoing Response shall be brought on for hearing before the United States Bankruptcy Court for the Eastern District of Kentucky, 100 East Vine Street, 3rd Floor, Lexington, Kentucky, on September 6, 2007 at the hour of 2:15 p.m., or as soon thereafter as counsel may be heard.
Respectfully submitted,
WISE DELCOTTO PLLC
/s/ Dean A. Langdon, Esq.
200 North Upper Street
Lexington, KY 40507
Tel. No. (859) 231-5800
Fax No. (859) 281-1179
E-mail: dlangdon@wisedel.com
PROPOSED COUNSEL FOR OFFICIAL
COMMITTEE OF UNSECURED CREDITORS
OF PLASTICON INTERNATIONAL, INC. |
