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.
HERE for full text of objection.
Need more info and analysis about the issues?
HERE to subscribe to AGRR magazine.