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Diamond 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."

CLICK HERE for full text of motion.

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