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.
According to the objection, ACH alleges that Diamond received a shipment of glass within the 20 days preceding April 1, the day Diamond filed for bankruptcy, and that it is owed $81,860.55 for this glass. However, 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.) This motion was granted on June 25.

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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