Free Letter - District Court of Delaware - Delaware

Case 1 :04-cv-01389-JJF Document 82 Filed 10/26/2005 Page 1 of 2
CURTIS, MALLETTPREVOST, COLT sr Moor.; I.I_I==
ATTORNEYS AND COLINSELLORS AT l.Aw
FRANKFURT Muec:AT FOI PARK AVENUE TELEPHONE EI 2-595-5000
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October 26, 2005
VIA FEDERAL EXPRESS
The Honorable Joseph J. Farnan, Jr.
United States District Court
District of Delaware
844 King Street
Wilmington, DE 19801
Re: In re North Western Corporation
Bankruptcy Case No.: 03-12872 gJLP]
Dear Judge Faman:
We write on behalf of NorthWestem Corporation ("NorthWestem"), in response
to the letter dated October 25, 2005 from Magten Asset Management Corp. ("Magten") regarding
the proposed appointment of Louis C. Bechtle as Special Master in certain litigation matters
pending before the Court (the "Actions").l
I Based upon the proceedings at the status conference held by Your Honor on October 21, 2005,
our understanding is that the Court intended for the appointment of the Special Master for the
following three matters: (1) Civil Action No. 04-1 494—JJF, Magtcn’s action against
l\lorthWestern relating to the 2002 transfer of assets commonly referred to as the “Going Flat
Transaction? (2) Civil Action No. 04-1256-JJ F, Magten’s action against Paul, Hastings,
J anofsky & Walker LLP alleging aiding and abetting claims with respect to the Going Flat
Transaction; and (3) Civil Action No. 05-0499-JJF, Magterfs action against Michael J. Hanson
and Ernie Kindt, former ofticers of NorthWeste1n’s subsidiary whose assets were transferred in
the Going Flat Transaction. We believe that the reference to Civil Action No. 05-0209-JJF in the
Court’s October 24, 2005 Order was included in error. That action relates to Magten’s appeal of
the Bankruptcy Court’s March 10, 2005 decision denying Magten’s 9019 Motion to approve a
proposed settlement with NorthWestern.
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Case 1:04-cv-01389-JJF Document 82 Filed 10/26/2005 Page 2 of 2
cunris, Manner-pnavosr, coisr s. Mosu: i.i.i= HOD. Joseph J. Parham, Ji`.
ATTORNEYS AND COUNSELLOR5 AT LAW 2 26,
Northwestern has no objection to the appointment of .Judge Bechtle as Special
Master in the Actions. Although Judge Bechtle has served as a mediator in connection with
certain appeals of fee applications in the NorthWestern bankruptcy case, NorthWestern does not
believe that this gives rise to any conflict of interest or that it would otherwise impair his
impartiality in connection with the Actions. As Magten itself recognizes in its letter, the
"appellate issues relating to fees" are different from the "issues relating to the fraudulent
conveyance" that are presented in the Actions. Any incidental information that may have been
provided in connection with the fee application appeals has no relevance to the Actions.
Accordingly, Magten's concerns regarding the proposed appointment are misplaced.
NorthWeste1‘n`s position is that, unless Judge Bechtle deems it necessary to recuse himself,
N`orthWestern is confidant that he will be able to serve as a fair and impartial Special Master in
the Actions.
NorthWestern believes the appointment of a Special Master will be helpful in
facilitating the prompt resolution of the Actions, and hopes the selection ofthe individual who
will serve in this capacity will be determined without undue delay or protracted objections.
Respectfully Submitted,
i
cc: Clerk of Court (Via CMF)
Gary L. Kaplan, Esq. (Vic: E-Mail)
David A. Jenkins, Esq. (Via E-Mail)
Kathleen M. Miller, Esq. (Via E-Mail)
Bijan Amini, Esq. (Via E-Mail)
William E. Chipman, Jr., Esq. (Via E-Mail)
Neil B. Glassman, Esq. (Wa E-Mail)
Charlene D. Davis, Esq. (Via E-Mail)
Adam G. Landis, Esq. (Via E-Mail)
Robert J. Dehney, Esq. (Via E-Mail)
Curtis S. Miller, Esq. (Via E-Mail)
David L. Finger, Esq. (Vic: E-Mail)
Jesse H. Austin, lll, Esq. (Via E-Mail)
Karol K. Denniston, Esq. (Via E-Mail)
Amanda Darwin, Esq. (Via E-Mail)
John V. Snellings, Esq. (Via E-Mail)
Alan W. Kornberg, Esq. (I/in E-Mail)
Margaret A. Phillips, Esq. (Via E-Mail)
Stanley T. Kaleczyc, Esq. (Via E-Mail)
Denise Seastone Kraft, Esq. (Via E-Mail)
Office of thc United States Trustee (Vic: Federal Express)
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