Goodrich Corporation (“Goodrich”) filed a limited objection to the Debtors’ motion for entry of an order establishing and implementing exclusive and global procedures for the treatment of reclamation claims (the “Reclamation Procedures Motion”) and the Debtors’ motion for entry of an order establishing procedures for the assertion, resolution and satisfaction of claims asserted pursuant to section 503(b)(9) of the Bankruptcy Code (the “503(b)(9) Procedures Motion”). Under certain circumstances, reclamation permits a vendor to take back (reclaim) good delivered within up to 45 days before the filing of the bankruptcy cases. Bankruptcy Code section 503(b)(9) grants vendors an administrative expense priority over general unsecured claims for goods delivered within the 20 days prior to the filing of the bankruptcy cases. Goodrich argues that the proposed forms of order submitted with each of the motions may be interpreted and enforced such that any reclamation demand or proof of 503(b)(9) claims would be considered non-conforming, not timely received and/or otherwise flawed and possibly expunged based on the claimant’s failure to provide all of the information and/or each such item listed as required therein, regardless of whether the claimant has the information or documentation available to it. Goodrich requests that the proposed orders include a clarification that certain required information listed in the Reclamation Procedures Motion and the 503(b)(9) Procedures Motion be required only to the extent already available or known to the reclamation and/or 503(b)(9) claimant.
Freshpoint Dallas, Inc. (“Freshpoint Dallas”) filed an objection to the Debtors’ motion (the “PACA Motion”) for the establishment of procedures for the treatment of claims pursuant to the Perishable Agricultural Commodities Act (“PACA”). Freshpoint Dallas supplied the Debtors with fresh produce before the bankruptcy case and alleges that it has a PACA claim in the amount of $16,711.78 against the Debtors. Freshpoint Dallas argues that the procedures proposed by the Debtors for treatment of PACA claims are flawed because they misstate the procedure for preserving PACA rights and provide no firm deadline for payment of PACA claims. Freshpoint Dallas requests that the Debtors be required to pay prepetition PACA trust claims within ten (10) business days.
All three of these motions are scheduled to be heard by the bankruptcy court on December 13, 2011 at 2:00 p.m. (ET).
Lowenstein Sandler PC
Sharon Levine, Esq.
S. Jason Teele, Esq.
Nicole Stefanelli, Esq.