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ACH Motion Granted in Diamond Case

A motion made by Automotive Components Holdings LLC (ACH) in the bankruptcy case of Diamond Glass has been granted by the judge overseeing the case. ACH had previously motioned for relief from the automatic stay to offset the mutual prepetition claims between ACH and Diamond Glass Inc. (CLICK HERE for related story.)

In the original motion, ACH, which recently was purchased by Zeledyne LLC, wrote that it had sold glass to Diamond pre-petition, on credit terms, and that Diamond had performed auto glass replacement services for it on credit terms. Currently, ACH has an unpaid prepetition contract claim against Diamond for $572,327.32 for glass that it sold and delivered to Diamond prior to the April 1 filing, while it owes Diamond approximately $350,000 for work Diamond performed for it under the companies' joint contract.

In the order signed by U.S. Bankruptcy judge Christopher S. Sontchi, it reads, "The automatic stay is hereby terminated to allow ACH to offset its prepetition indebtedness owed to Diamond Glass Inc. in the amount of $350,483.07 against ACH's prepetition claim against Diamond Glass."

ACH also had issued an objection to Diamond's motion for approval of the asset purchase agreement and authorization of the sale of its assets, in light of the aforementioned pre-petition claims, but the objection was denied by the court, "as moot," based on the granting of the original motion.

CLICK HERE for full text of order granting ACH's motion.

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