a998 Doc#395 Filed 11/07/12 Entered 11/07/12 18:02:00 Main Document Pg 1 of 5

Transcription

1 a998 Doc#395 Filed 11/07/12 Entered 11/07/12 18:02:00 Main Document Pg 1 UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION In re: Chapter 11 DELTA PRODUCE, L.P. 1, Case No LMC Debtors Jointly Administered MOTION TO RELEASE FUNDS HELD IN ESCROW THIS PLEADING REQUESTS RELIEF THAT MAY BE ADVERSE TO YOUR INTERESTS. IF NO TIMELY RESPONSE IS FILED WITHIN TWENTY-ONE (21) DAYS FROM THE DATE OF SERVICE, THE RELIEF REQUESTED HEREIN MAY BE GRANTED WITHOUT A HEARING BEING HELD. A TIMELY FILED RESPONSE IS NECESSARY FOR A HEARING TO BE HELD. TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE: NOW COMES, INTERNATIONAL BANK OF COMMERCE, ( IBC ), files its Motion to Release Funds Held in Escrow (the Motion ) pursuant to the terms of the Order Granting Motion for Entry of an Order Authorizing and Approving the Sale of Certain of the Debtors Property Free and Clear of Liens, Claims, Interests, and Encumbrances Outside the Ordinary Course of Business (the Sale Order Doc. No. 382), and in support thereof would show unto the Court as follows: I. INTRODUCTION 1.1 The Bankruptcy Court has jurisdiction over this proceeding pursuant to 28 U.S.C. 157 and 1334 and other applicable sections of the Bankruptcy Code and Amendments. 1.2 IBC is, and has at all times herein mentioned, a federally insured bank duly 1 Debtors are the following entities: Delta Produce, L.P. Case No LMC-11, Superior Tomato-Avocado, Ltd. Case No LMC-11, Atled, Ltd. Case No LMC- 11 and Staci Properties, Ltd. Case No LMC

2 a998 Doc#395 Filed 11/07/12 Entered 11/07/12 18:02:00 Main Document Pg 2 authorized to transact business in the state of Texas and may be served through counsel of record herein. 1.3 IBC is informed and believes, and based thereon, alleges that Debtors are and have been at all times herein mentioned been a Texas corporation, authorized to operate in Texas, whose address, shown on its voluntary petition, is 2001 S. Laredo Street, San Antonio, Texas On January 3, 2012 (the Petition Date ), the Debtors (with the exception of Staci Properties, Ltd. which filed its Chapter 11 case on January 9, 2012) filed voluntary petitions for relief under Chapter 11 of title 11 of the United States Code, 11 U.S.C (as amended, the Bankruptcy Code ). 1.5 Pursuant to the provisions of 11 U.S.C. 362(a), the filing of said petition operated as an automatic stay against IBC s rights to proceed against Debtors and/or to enforce its rights under applicable loan documents, including the right to foreclose. Upon IBC s information and belief, Debtors and/or the estate remain in possession of property securing claims owed to IBC. 1.6 The Order Granting Motion for Relief from Automatic Stay (the Lift Stay Order Doc. No. 392) on November 5, 2012 terminating the stay, authorizing IBC to take any and all steps under the terms of its loan documents and/or under the laws of the State of Texas to foreclose, offset and/or reposes its collateral. 1.7 Prior thereto, on October 31, 2012, this Court entered the Order Authorizing and Approving the Sale of Certain of the Debtors Property Free and Clear of Liens, Claims, Interests, and Encumbrances Outside the Ordinary Course of Business (the Sale Order ). The Sale Order required in part: PAGE - 2

3 a998 Doc#395 Filed 11/07/12 Entered 11/07/12 18:02:00 Main Document Pg 3 Debtor shall pay the remaining net Sales proceeds to IBC after deduction of all usual and customary closing costs (including payment of Debtors obligations under the Agreement), less $400, (the Escrowed Funds ) which shall be deposited into a segregated account established by Debtors at Frost Bank, styled the Atled Sale Proceeds Account (the Segregated Account ). Debtors shall hold and not disburse such Escrowed Funds from the Segregated Account pending further order of the Court, pending resolution of the PACA claims disputes against IBC...all liens, claims and encumbrances of IBC or PACA claimants against the Property are transferred and attach to the $400,000 in the Segregated Account with the same validity, extent and order of priority that existed with respect to the Property. 1.8 The Court ordered $400, to be held in escrow based upon claims made by Special PACA Trust Counsel as set forth within the Limited Objection to Motion to Sell Property Fee and Clear of Liens (Doc. No. 379). Therein, Special PACA Counsel asserted: current collections of PACA trust assets under the claims procedure order are sufficient to cover most, but perhaps not all of PACA trust claims approved by the Court. A few collections and other issues remain pending. In any event, Special PACA Trust Counsel believes that no more than $400,000 of PACA trust assets need to held in the Court s registry. (Limited Objection to Motion to Sell Property Fee and Clear of Liens Doc. No. 379) II. ARGUMENTS AND AUTHORITIES 2.1 Following the Entry of the Sale Order, a hearing was conducted in relation to Special PACA Counsel s Omnibus Objection to PACA Creditors Fee Applications (Doc. No. 347) and, by Omnibus Objection to PACA Creditors Applications for Attorneys Fees filed by interested party W. Scott Jensen (Doc. No. 331). At that hearing, the Bankruptcy Court denied all post-petition fee applications of PACA creditors attorneys. Consequently, attorneys fees approximating $300,000.00, previously made part and included within the PACA claims were disallowed thereby reducing the outstanding PACA claim amount, resulting in a deduction of the exposure to PACA claims from $400,000;00 as asserted within the Limited Objection to Motion to Sell Property Fee and Clear of Liens, to a claim in the approximate amount of $100, PAGE - 3

4 a998 Doc#395 Filed 11/07/12 Entered 11/07/12 18:02:00 Main Document Pg IBC has duly perfected pre and post-petition liens evidenced by prepetition loan documents and post-petition Orders of the Court, while liens have attached to the $400, Escrow Fund. The Bankruptcy Court s Lift Stay Order dated November 5, 2012 authorizes IBC to take any and all steps to reposes and foreclose on its collateral and requires Debtor to cooperate fully with IBC s efforts to reposes or gain possession of its collateral. 2.3 The Court Order denying attorneys fees, reducing PACA exposure by approximately $300, and eliminating the need to retain $400, in escrow. At this time no more than $100, in risk exposure exists to the PACA claims. PRAYER WHEREFORE, PREMISES CONSIDERED, IBC respectfully requests, upon due consideration, that this Court require PACA Special Counsel to set forth the reduced amount of PACA exposure, after deducting amount of disallowed attorneys fees that the Court fix the maximum amount of PACA exposure in relation to the $400, Escrow Fund, that the $400, Escrow Fund be reduced to an amount of the reduced PACA exposure and that the amount so released, be ordered turned over to IBC to applied to outstanding IBC loan obligations, and that IBC be provided such other relief at law or in equity to which IBC may be justly entitled. Respectfully submitted, MARTIN & DROUGHT, P.C Bank of America Plaza 300 Convent Street San Antonio, Texas (210) / (210) By: /s/ Michael G. Colvard Michael G. Colvard State Bar No PAGE - 4

5 a998 Doc#395 Filed 11/07/12 Entered 11/07/12 18:02:00 Main Document Pg 5 ATTORNEYS FOR INTERNATIONAL BANK OF COMMERCE CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the above and foregoing instrument was forwarded via United States Mail, First Class, postage prepaid, to the parties listed on the attached service list on November 7, /s/michael G. Colvard Michael G. Colvard PAGE - 5

6 a998 Doc#395-1 Filed 11/07/12 Entered 11/07/12 18:02:00 Service List Pg 1 of 3 Delta Produce, LP 2001 S Laredo St Super Tomato-Avocado, Ltd S Laredo St Staci Properties, Ltd S Laredo St Atled, Ltd. 200 S Laredo St United States Trustee - SA12 US Trustee's Office 615 E Houston, Suite 533 PO Box 1539 San Antonio, TX Craig A. Stokes Stokes Law Offices, LLP 3330 Oakwell Court, Suite 225 San Antonio, TX A&A Transportation, Inc College Park San Antonio, TX William R. Davis Jr Allen M. DeBard Langley & Banack, Inc 745 E Mulberry, Suite 900 San Antonio, TX Del Campo Supreme, Inc. 672 W. Frontage Rd. Noales, AZ Dimare Newman, Inc. P.O. Box 517 Newman, CA Divine Ripe, LLC 9901 S. Jackson Rd. #A Pharr, TX Frank's Distributing of Produce P.O. Box 2020 Nogales, AZ Harllee Packing, Inc. P.O. Box 8 Palmetto, FL Alamo Leasing 2010 NW Military Hwy. San Antonio, TX International Bank of Commerce 130 E. Travis Harvest Crown Co., Inc. P.O. Box Bakersfield, CA J-C Distributing, Inc N. Donna Avenue Nogales, AZ Juniper Tomato Grower, Inc. P.O. Box 38 Greensboro, FL IFCO Systems NA 5250 Tacco Drive San Antonio, TX Kingdom Fresh Produce, Inc North Goolie Rd., #A Donna, TX Mission Produce, Inc Vineyad Ave., Suite 300 Oxnard, CA Rio Queen Citrus 4012 E. Goodwin Rd. Mission, TX Royal Flavor, LLC 2655 Melksee St. San Diego, CA Internal Revenue Service P.O. Box 7346 Philadelphia, PA Valero Marketing & Supply P.O. Box 300 Amarillo, TX A & D Carriers 4126 Luckenbach Rd. San Antonio, TX A&A Concepts, LLC 1219 S. Zarzamora St. Averitt Brokerage Co., Inc. Mr. David Faubion 9999 Perrin Beitel, Suite B San Antonio, TX B. Catalani, Inc S. Zarzamora, #326 Banana Distributing Company 1500 S. Zarzamora

7 a998 Doc#395-1 Filed 11/07/12 Entered 11/07/12 18:02:00 Service List Pg 2 Coosemans Houston, Inc Produce Row Houston, TX of 3 Fresh Farm Direct, LLC 106 Adams St., Suite 2A Monte Vista, CLO Gonzalez Mexican Produce 2501 W. Military Hwy., A-23 McAllen, TX Harllee Packing, Inc. P.O. Box 8 Palmetto, FL Henry Avocado Corp. P.O. Box Escondidio, CA Kitchen Pride P.O. Box 585 Gonzales, TX Le Best Banana Supply Co. P.O. Box 295 Hidalgo, TX M&P Logistics LP 1500 S. Zarzamora, #308 Maxim Egg Farms P.O. BOx Dallas, TX Rio Bravo Produce 1006 S. Cesar Chavez Edinburg, TX Slankard Produce Co., Inc S. Zarzamora Sunriver Sales P.O. Box 2738 Visalia, CA Touchstone & Associates 1500 S. Zarzamora St., #205 Willson Davis Company 1500 S. Zarzamora Robert E. Goldman 1 East Broward Blvd. Ste. 700 Fort Lauderdale, FL Tijerina & Sons, LLC c/o Zachary B. Aoki Thurman & Phillips, P.C IH-10 West, Suite 1000 San Antonio, TX David G. Aelvoet Linebarger Gogan Blair 711 Navarro, Suite 300 Flatiron Capital c/o Robert L. Barrows 800 Broadway San Antonio, TX General Electric Capital Corp, NMHG Financial Services, Inc. c/o William H. Daniel McGinnis, Lochridge & Kilgore 600 Congress Ave., Ste Austin, X Divine Ripe, LLC c/o John Kurt Stephen Cardenas & Stephen 100 South Bicentennial McAllen, TX Market Dispatch Service, Inc. c/o Celinda Baez Guerra Flume Law Firm, LLP 1020 N.E. Loop 410, Ste. 200 San Antonio, TX Muller Trading c/o Bruce W. Akerly Cantey Hanger LLP 1999 Bryan St., Suite 3300 Dallas, TX Divine Ripe, Rio Queen Citrus, Eco-Farms Sales, Garguilo, Inc. c/o Michael J. Black Burns & Black 750 Rittiman Road San Antonio, TX Steven E. Nurenberg Meuers Law Firm 5395 Park Centra Court Naples, FL Daimler Trust c/o Stephen G. Wilcox Bassel & Wilcox P.O. Box Fort Worth, TX Paul T. Curl/ Diana M. Geis Curl & Stahl, P.C. 700 N. St. Mary s Street, Suite 1930 Wilson Davis Co. c/o Paul D. Barkhurst Barkhurst & Hinojosa, PC 110 Broadway, Suite 350 W. Scott Jenson c/o Elliott S. Cappuccio/Randall Pulman/Leslie S. Hyman Pulman Cappuccio Pullen & Benson 2161 NW Military Hwy., Suite 400 San Antonio, TX PACCAR Financial Corp. c/o Robert J. Reagan Reagan McLain Lee & Hatch, LLP 6060 North Central Expy., Ste. 690 Dallas, TX Harllee Packing, Inc. c/o Chris S. Tillmanns Bracewell & Giuliani, LLP 711 Louisiana Street, Ste Houston, TX

8 a998 Doc#395-1 Filed 11/07/12 Entered 11/07/12 18:02:00 Service List Pg 3 Harllee Packing, Inc. c/o Jake Blanchard Fowler White Boggs P.A. 501 E. Kennedy Blvd., Ste Tampa, FL of 3 Key Equipment Finance c/o Mark W. Stout Padfield & Stout, LLP 777 Main Street, Suite 1920 Fort Worth, TX Guadalupe County c/o Lee Gordon McCreary, Veselka, Bragg & Allen P.O. Box 1269 Round Rock, Texas Jason A. Starks Assistant Attorney General P.O. Box Austin, TX James S. Wilkins Willis & Wilkins, LLP 100 W. Houston Street, Ste. 1275