Glass Objects to ACH Motion
Diamond Glass has filed a preliminary objection to Automotive Component
Holdings Inc.'s (ACH) motion for relief from the automatic stay
to offset mutual prepetition claims between the two companies. (CLICK
HERE for related story.)
In its original motion, ACH, which recently was purchased by Zeledyne
LLC, claimed that it sold glass to Diamond pre-petition, on credit
terms, and that Diamond performed auto glass replacement services
for it on credit terms. Currently, ACH alleges it 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.
According to the Diamond objection, company officials at Diamond
"do not concede that the amount of either the ACH claim or
ACH debt as alleged by ACH is accurate."
"Moreover, beyond this accounting issue, it is unclear whether
ACH still has a claim which is subject to setoff," the motion
continues. The motion cites the press release issued by Zeledyne
Inc. in April (CLICK
HERE for related story), noting that Zeledyne had purchased
ACH's glass business, and, "before the Debtors can respond
fully to the Motion, ACH must specify what portion of the ACH Claim
was sold to Zeledyne."
HERE for full text of motion.
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