Diamond Plan Administrator Objects to $11,000 Yahoo! Claim
July 7, 2009

Diamond Glass plan administrator Alfred Giuliano, who was appointed by the U.S. Bankruptcy Court to oversee the company's liquidation plan, has issued an objection a recently filed $11,000 administrative claim by Yahoo! HotJobs. The Yahoo! claim of $11,148.10 was filed in June against Diamond Glass for "certain amounts that [Diamond] failed to remit to Yahoo! post-petition. According to the claim filed by Yahoo!, the company had submitted three invoices, totaling the amount of the claim, between May 28 and June 20, 2008, for post-petition recruiting/advertising services on its HotJobs site. Yahoo! also claims that it continued to provide service to Diamond from May 28-November 27, 2008. (CLICK HERE for related story.)

However, in Guiliano's objection, filed yesterday, he notes that Diamond Glass was sold to Belron via an auction process on June 20, 2008, and after the closing of the sale, Diamond was "no longer actively engaged in operations" and therefore "Yahoo has not provided an actual benefit to the Debtors' estates, especially given the cessation of operations by the Debtors in late-June 2008."

In addition, on August 22, 2008, the Court issued an order authorizing Diamond to reject "nunc pro tunc certain executory contracts and unexpired non-residential real property leases," and, by this order, Giuliano claims the Yahoo! contract was rejected.

CLICK HERE for full text of objection.

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