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