Diamond Applies for Authorization to Retain Bankruptcy Counsel; Safelite, CRL, Among 30 Largest Unsecured Creditors in Motion

Diamond Glass Inc. has filed an application for the court to authorize the retention and employment of employ Foley & Lardner LLP as general bankruptcy counsel nunc pro tunc to the petition date (i.e., retroactively). The motion was filed on April 8 in the U.S. Bankruptcy Court of Delaware. Diamond filed for reorganization under Chapter 11 on April 1 (CLICK HERE for related story.).

Within the motion, Diamond's counsel notes that Foley & Lardner originally was retained on August 15, 2007, with a retainer fee of $50,000 "in connection with an out-of-court or bankruptcy restructuring, and the eventual planning and preparation for filing these cases."

The motion also includes requests for authorization for compensation for Foley on an hourly basis, with a request for authorization to pay Michael Richman, partner, who spoke extensively during the initial hearing, $895 per hour. Fees for the others names in the case from Foley & Lardner range from $545 per hour to $200 per hour.

During the 90 days prior to the April 1 filing for reorganization, Foley had received payments associated with the Diamond case of approximately $560,379, according to court documents.

Richman also filed an affidavit showing that the firm "has not represented the Debtor's creditors, equity security holders or any other parties-in-interest, or their respective attorneys in any matters relating to the Debtors or their estates." Within the affidavit, Richman lists the following 30 largest unsecured creditors, which includes several glass industry creditors not listed in the original filing, such C.R. Laurence Co. Inc., Equalizer Industries Inc. and Safelite.

The full list from Richman's affidavit is as follows:

• AGC Automotive Americas
• American Express
• Auto Temp Inc.
• Automotive Components Holding
• Autover Corp.*
• Bartelstone
• C.R. Laurence Co. Inc.*
• Calex Truck Brokers Inc.*
  
• Crinamex
  
• Dupli Craft Printing*
  
• Equalizer Industries Inc.*
  
• Gold Glass Group Corp.
  
• Greenville Glass Industries
  
• Guardian Auto Glass
  
• Ketchum Directory Advertising
  
• Libbey Owens Ford (SBWILLCA)
  
• Libbey Owens Ford (Shortbuy)
  
• Libbey Owens Ford-Truckload
  
• Minnoka Motor Sales*
  
• Morgan Lewis & Bockius LLP*
  
• Mygrant Glass Co. Inc.
  
• PHH
  
• PPG Auto Glass LLC
  
• PPG Industries Inc.
  
• PPG-Creighton
  
• Safelite*
  
• Settles Realty Trust*
  
• Shenzhen CSH Automotive SAF
  
• SIKA Corp.
• Xinyi Group (Glass Co.)
  
  

*Not included on original list from April 1 filing.

CLICK HERE for full text of motion and affidavit.

Need more info and analysis about the issues?
CLICK HERE to subscribe to AGRR magazine.