Free Declaration - District Court of Delaware - Delaware

Case 1:06-cv-00521-GMS

Document 8

Filed 06/26/2007

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWAR
Civil Action No. 06-00520-GMS, 06-00521-GMS

In re: NELLSON NURACEUTICAL, INC., et al.
Debtors.
Bankruptcy Case No. 06- 10072 (CSS)

UNITED STATES TRUSTEE AND OFFICIAL COMMITTEE OF UNSECURD CREDITORS
Appellants,
v.

NELLSON NUTRACEUTICAL, INC., et ale
Appellees.

APPEAL FROM THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE (Christopher S. Sontchi, Judge)

DECLARA TION OF JAMES M. FRAGNOLI IN SUPPORT OF APPELLEES' MOTION TO DISMISS APPEAL ON MOOTNESS GROUNS
PACHUSKI STANG ZIEHL YOUNG JONES & WEINTRAUB LLP
Laura Davis Jones (Bar No. 2436)

Richard M. Pachulski (CA Bar No. 90073) Brad R. Godshall (CA Bar No. 105438) Maxim B. Litvak (CA Bar No. 215852) Rachel Lowy Werkheiser (Bar No. 3753)
919 North Market Street, 17th Floor

P.O. Box 8705 Wilmington, DE 19899-8705 (Courier 19801)
Telephone: (302) 652-4100 Facsimile: (302) 652-4400

Counsel for the Appellees
DATED:

June 26,2007

59903-001 \DOCS_DE: 128562.2

Case 1:06-cv-00521-GMS

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STATE OF CALIFORNIA )
ss) COUNTY OF LOS ANGELES )
I, James M. Fragnoli, declare as follows:
1. I am the Corporate Controller of

NeIlson Nutraceutical, Inc. ("Nellson"),

Nellson Holdings, Inc. ("NeIlson Holdings"), Nellson Intermediate Holdings, Inc. ("Nellson
Intermediate"), Nellson Northern Operating, Inc. (''Nellson Northern"), Nellson Nutraceutical

Eastern Division, Inc. ("Nellson Eastern"), Nellson Nutraceutical Powder Division, Inc.

("Nellson Powder") and Vitex Foods, Inc. ("Vitex") (collectively, the "Debtors" or the
"Appellees").!

2. My current duties for the Debtors include general supervision of, and
responsibilty for, many aspects of

the Debtors' financial affairs; assisting with the financial

activities of the Debtors; and other related matters.
3. In my capacities with the Debtors, I have general knowledge of

the

Debtors' books and records, and am familar with the Debtors' financial and operational affairs.
4. I submit this Declaration in support of the Appellees' Motion to Dismiss

Appeal on Mootness Grounds. All statements in this Declaration are based upon my personal
knowledge, my review of

the Debtors' books and records, or relevant documents and other

information prepared or collected by the Debtors' employees. If I were called to testify as a
witness in this matter, I could and would competently testify to each ofthe facts set forth herein

i Capitalized terms not otherwise defined herein shall have the meaning ascribed to them In the Appellees' Motion
to Dismiss the Appeal on Mootness Grounds.

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based upon my personal knowledge, review of documents, or opinion. I am authorized to submit
this Declaration on behalf of the Debtors.
5. On July 31,2006, the Debtors made their first payment to employees

under the management incentive program (the "MIP") for achieving the operational benchmarks

set fort for the first half of 2006. The aggregate sum of $550,000 was paid at that time.
6. The Debtors did not achieve their performance targets for the second half

of 2006. Accordingly, no additional payments under the MIP were made.
I declare under penalty of perjury that the foregoing is true and correct. Executed

this ;¿ (,

th day of June, 2007.

NELLSON NUTRACEUTICAL, NELLSON HOLDINGS, INC., NELLSON INTERMEDIATE HOLDINGS, INC., NELLSON NORTHERN OPERATING, INC., NELLSON NUTRACEUTICAL EASTERN DIVISION, INC., NELLSON NUTRACEUTICAL POWDER DIVISION, INC. AND VITEX FOODS, INC.

BY~1l £
J es M. Fragnoli

Corporate Controller

59903-001 \DOCS -ÐE: 128562.2

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Case 1:06-cv-00521-GMS

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE
In re:

NELLSON NUTRACEUTICAL, INC., et aI.,
Debtors. UNITED STATES TRUSTEE AND THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS,

Appellants,
v.

Civil Action No. 06-520 (GMS) Civil Action No. 06-521 (GMS)

NELLSON NUTRACEUTICAL, INC., et aI.,
Appellees.

Bankptcy Case No. 06-10072 (CSS)
Appeal No. 06-45

AFFIDAVIT OF SERVICE

STATE OF DELAWARE )
)SS:

COUNTY OF NEW CASTLE )
Karina Yee, being duly sworn according to law, deposes and says that she is Pachulski Stang Ziehl Young Jones & Weintraub LLP, counsel for the Appellees, in the above-captioned action, and that on the 26th day of June, 2007, she caused a copy of the following document(s) to be served upon the attached service list(s) in the manner indicated:
employed by the law firm of

Declaration of James M. Fragnoli in Support of Appellees' Motion to Dismiss

Appeal on Mootness Grounds

Karina Yee

Kf ~

VANESSA A. PRESTON

tary Public My Commission Expires:

tary Public - State of Delaware My Comm. Expires March 21, 2008

Q)i(-Ð~

59903-002\DOCS_DE: 128606.4

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Nellson Nutraceutical, Inc. Appeal Service List
Case No. 06-10072 (CSS)
Document No. 120478

02 - Interoffice Delivery 06 - Hand Delivery
05 - First Class Mail
(Counsel to the Debtors)

Hand Delivery (Counsel to Fremont Investors VII, LLC) Mark D. Collins, Esquire Richards Layton & Finger One Rodney Square 920 North King Street Wilmington, DE 19801

Laura Davis Jones, Esquire Rachel Lowy Werkheiser, Esquire Pachulski Stang Ziehl Young Jones &
Weintraub LLP

Hand Delivery
(Counsel to Informal Committee of

First Lien

919 North Market Street, 1 ih Floor P.O. Box 8705 . Wilmington, DE 19899-8705

Lenders) Robert S. Brady, Esquire Young Conaway Stargatt & Taylor LLP The Brandywine Building 1000 West Street, 1 ih Floor Wilmington, DE 19801

Interoffice Mail
(Counsel to the Debtors)

Maxim B. Litvak, Esquire Pachulski Stang Ziehl Young Jones &
Weintraub LLP 150 California Street, 15th Floor
San Francisco, CA 941 i 1

Hand Delivery (Counsel to UBS) Richard W. Riley, Esquire Duane Morrs LLP 1100 North Market Street, Suite 1200 Wilmington, DE 19801 Hand Delivery (Counsel to the Official Committee of Unsecured Creditors)

Interoffice Mail
(Counsel to the Debtors)

Richard M. Pachulski, Esquire Brad R. Godshall, Esquire Pachulski Stang Ziehl Young Jones &
Weintraub LLP

Kurt F. Gwyne, Esquire
Reed Smith LLP 1201 Market Street, Suite 1500 Wilmington, DE 19801

10100 Santa Monica Boulevard, Suite 1100 Los Angeles, CA 90067 Hand Delivery (United States Trustee)

First Class Mail
Wiliam Harrngton, Esquire Office ofthe United States Trustee J. Caleb Boggs Federal Building
844 N. King Street, Suite 2207
Lockbox 35

(Counsel to UBS) James J. Holman, Esquire Duane Morrs LLP
30 South 17th Street
Philadelphia, P A

First Class Mail
(Counsel to UBS) Gregory A Bray, Esquire Thomas R. Kreller, Esquire Milbank, Tweed, Hadley & McCloy LLP
601 South Figueroa Street, 30th Floor

Wilmington, DE 19801
Hand Delivery (Mediator) J. Richard Tucker, Esquire Maron Marvel Bradley & Anderson, P .A. 1201 N. Market Street, Suite 900 Wilmington, DE 19801

Los Angeles, CA 90017

Case 1:06-cv-00521-GMS

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First Class Mail
(Counsel to Fremont Investors VII, LLC) Suzzanne Uhland, Esquire O'Melveny & Myers LLP
Embarcadero Center West

275 Battery Street San Francisco, CA 94111-3305

Fist Class Mail
(Counsel to the Ad Hoc Committee of

First

Lien Lenders)
Fred Hodara, Esquire

Akin Gump Strauss Hauer & Feld LLP 590 Madison Avenue New York, NY 10022

First Class Mail
(Counsel to the Official Committee of Unsecured Creditors) Claudia Springer, Esquire Reed Smith LLP 2500 One Liberty Place 1650 Market Street Philadelphia, P A 19103