Diamond Objects to Payment of Administrative Claim to ACH
Diamond Glass, now known as D.G. Liquidation Corp. in the bankruptcy case, has filed an objection to the Automotive Component Holdings LLC's (ACH) motion for allowance and payment of an administrative claim related to glass it had sold to Diamond.
Diamond Glass, now known as D.G. Liquidation Corp. in the bankruptcy
case, has filed an objection to the Automotive Component Holdings LLC's
(ACH) motion for allowance and payment of an administrative claim related
to glass it had sold to Diamond.
Diamond claims that in this original motion for "setoff," that ACH "did not specify which invoices and claims of ACH were being satisfied by the setoff, leaving doubt as to whether [its] claims that were setoff were general unsecured claims or those that could be characterized as administrative claims."
"If the setoff covered those claims that ACH is now alleging are administrative claims under section 504(b)(9), then the claim amount of $81,860.55 should be treated as a general unsecured claims," reads the objection, which was authored by Michael Richman, Mark Salzberg and Erika Morabito of Foley and Lardner LLP, and Michael Nestor, Joseph Barry, Donald Bowman and Kara Hammond Coyle of Young Conaway Stargatt & Taylor LLP.
Finally, Diamond also claims that ACH's request that the administrative payment should be made "immediately and without delay" should not be recognized.
"Because ACH has failed to allege any necessity, its request for immediate payment should be denied," the objection continues. "Furthermore, to require the Debtors to do so would be to the prejudice of the Debtors and other creditors, including other creditors with administrative claims."
CLICK HERE for full text of objection.
CLICK HERE for full text of ACH's original motion.
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