Plasticon Claims Register Update: Claim #18 filed by The Dow Chemical Company/Dow Credit Corporation , total amount claimed: $756159.92
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Claim 18
Extract
In re: Plasticon International, Inc. (07-50934)
In re: Pro Mold, Inc. (07-50935)
Dilworth Paxson LLP
Attorneys for The Dow Chemical Company
February 5, 2008
PROOF OF CLAIM OF THE DOW CHEMICAL COMPANY
This proof of claim (the “Claim”) evidences an unsecured claim in the amount of $756,159.92 held by The Dow Chemical Company and Dow Credit Corporation (together, “Dow”) against the bankruptcy estates of Plasticon International, Inc. (f/k/a Wicklund Holding Company) (“Plasticon”) and Pro Mold, Inc., a wholly-owned subsidiary of Plasticon, (together, with Plasticon, the “Debtors”).
Please note that, out of an abundance of caution, Dow filed the Claim in both cases in that it is difficult to distinguish among the Debtors and the various other affiliated-entities that are and/or were controlled by James N. Turek, Sr., Plasticon’s President and majority shareholder (“Turek”). Dow intends to withdraw the Claim from one of the cases if and at such time a determination is made as to the appropriate case in which the Claim should be filed.
The Claim represents monies owed to Dow by the Debtors through (i) Wicklund Holding Company (the former name of Plasticon) (“Wicklund”) and (ii) a Wicklund subsidiary, International Plastics, Inc. (f/k/a International Plastics Company) (“IPI”), both of which were controlled by Turek.
The basis for the Claim arose originally from a loan made by Dow to IPI in or about November 1990, which was (i) secured by the assets of IPI including certain patents for “Beam Bolsters” (the “Patents”), and (ii) guaranteed in part by Turek. As part of IPI’s Chapter 11 bankruptcy case filed in 1992, Dow was granted allowed secured claims in the amounts of $85,000 and approximately $2.3 million, respectively. IPI was required to surrender the Patents if it failed to make certain distributions to Dow with respect to such claims.
IPI had not made the requisite distributions to Dow by early 1999 and, to resolve Dow’s claims against IPI, Wicklund, agreed to purchase Dow’s rights in the Patents for
(i) $625,000 in payments to be remitted in five monthly installments of $125,000 each;
(ii) a $175,000 promissory note (the “Wicklund Note”); and
(iii) royalties equal to 5% of gross sales related to the “Beam Bolsters” Patents up to and until Dow receives $400,000 (the “Royalties”) on or about March 24, 1999. Although it received the $625,000 in payments, Dow did not receive payments under the promissory note or with respect to the Royalties.
Laser Engineering, Inc., another Turek controlled entity (“Laser”), filed for bankruptcy in October 1999. The Chapter 7 trustee appointed in Laser’s bankruptcy case alleged that the $625,000 in payments was made by Laser and not Wicklund. Thus, the Chapter 7 trustee initiated an adversary proceeding against Dow, Turek, Wicklund and IPI seeking to avoid and recover the $625,000 in payments alleging such payments were preferential and/or fraudulent.
As part of the settlement of this adversary proceeding, Dow remitted $60,000 to the Chapter 7 Trustee (the “Laser Settlement”) though it did not release its claims vis-à-vis the Laser Settlement Payment as to Turek, Wicklund and/or IPI.
The $756,159.92 Claim is unsecured and is comprised of the following amounts:
(i) $175,000 in principal and $121,159.92 in interest of 8.5% per annum owed on the Wicklund Note for the period of March 24, 1999 through the Debtors’ May 16, 2007 Petition Date (see the attached schedule);
(ii) $400,000 in Royalties; and (iii) the $60,000 Laser Settlement. [1]
[1] The Claim does not include interest as to either the Royalties or the Laser Settlement.
The agreements, orders and other documents that support the Claim are available upon request. Dow reserves the right to amend the Claim to, inter alia, include additional amounts inadvertently omitted as part hereof if necessary. By submitting the Claim, Dow neither intends nor shall be deemed to waive its right to challenge the jurisdiction of the United States Bankruptcy Court including, without limitation, the jurisdiction of the Court to adjudicate noncore matters, which Dow hereby expressly reserves without prejudice.
Proof of Claim of The Dow Chemical Company Schedule of Accrued Interest on $175,000 Wicklund Note
Year Balance with Interest Interest - 8.5% per annum Ending Balance
1999 $175,000.00 $11,492.46* $186,492.46
2000 $186,492.46 $14,875.00 $201,367.46
2001 $201,367.46 $14,875.00 $216,242.46
2002 $216,242.46 $14,875.00 $231,117.46
2003 $231,117.46 $14,875.00 $245,992.46
2004 $245,992.46 $14,875.00 $260,867.46
2005 $260,867.46 $14,875.00 $275,742.46
2006 $275,742.46 $14,875.00 $290,617.46
2007 $290,617.46 $5,542.46** $296,159.92
* Interest from note execution date of March 24, 1999
** Interest calculated through petition date of May 16, 2007 |
