Free Bankruptcy Appeal - District Court of Delaware - Delaware

Case 1:06-cv-00158-JJF

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Case 1:06-cv-00158-JJF

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IN 'rflE CNI7ED S'r ATE3 B WTGY COL%T FOR 1XE DISmICT OF DEI.AWARE
--

Ln re:
KBRTMWESTEIKV CORPOTPSal?ON,

: Chaprcr l l

:

C w No. 83-12872 (JLP)
to W k e t

RwrganizeQBbtor,

: Re!-

No,3388

OIPDEW DENYING FlOTIBK OFTRE PtAh' C O S M W E E : JIV A 02: m CONSUMMATIOR ASD E&JPLE%fEn"TATION m E OF AUTAOMZING AND D W C T I N G NORTW\F"E.STEW COWOMTION TO UISTmIJTE SURPLUS DISTNBUTIONS

Implementation sf &e Plan for a d e r Aililo~zing Dimring N o ~ W e a e a n md Cowmdon to
Distn'kule Swlkrs Dislriibutions [ h k e l Xu. 33083 ( h"Molion"); md rhe Csurll hafing o

z c v i w d h e Motion md the reldd reqonses; w~d hearkg h v h g h a held on Imanuary 11,
2W6 ([he "SXe~irrgq~& mleeff,,l: the Ms~sn; the Court hackg head rko slatmen& of la and
g h e relief requmd in &e Motion d the H e h g ; and aAer d w delfbmtim
md suaiicimt eausc qp@nringthemfor, i t is h m b y

THE GCal=RT
A*

S r W CBNGLWES TIIAT: k

The finding of fact md conclusions o f law s l forlk Rerei~rmd on W rmod at

&e J m u 11, 2 M h m ~ n g ~ cons~tucch i s Court's G & i n ~of Get arnd conclusions of law

pumwat to Rule 52 of Il.re F d m l Rules of Civil b e d w e , a made applieerble hereh by ptcy Rule 7852 sand W14. To t)lc extent my of the following Endings of f a ~ conse(utc I

wr:clusiow of la!^, &(bey m dii)~t@?13 To b e exteslt aroy sf the following conclusions o f as such.
law constilure A d i n @ o f f a t , they we &opted srs such.

D.
6.

Ti%G r bas j ~ s d i c t i o n ul over rbis case d e r 28 U.S.C.
IXs i s a core p m c d i n g pumauant to 28 U.S.G.

1334@),

I S7(bX2),

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D.
tile

DUOmd iadquole n o ~ w bmn giver] la all me entitled ttierets, including hgs is

Saufilia and Exchwgc: C o r n i s i o n , d no slhm or frrrrher notice is necessq s r q u M .

E.

Tile b u r l hw rev,iiew& the Mshon md a l plendings ru;.lnt& rherero, including,
e

but nai lr r t ,Ihe follol~ng: inw o

Jeider of Ad Woe @ o n ~ t t w 6 m 7 bbUloIdem ao Mollion sf Plan of 1 ConsrniW in Aid of Cons tion & Implmmtadon of the Plars for M e e Amrizing and D h f i n g No~Wcstenr Cawration to Distribute Surglus Dislributiom [DoekeZ 30.33223;
Joint Objcclion of Magen Asscr Mar~agennmtCosg. md Luw Debmture Trust a m p m y of Now York to Ms~sn rhe Plan ComjiUsc i Aid of sf n Cowrnm&on und ImpIem~nWiala the Plan for &dm AulEzorihng mil of Di~cting NonhWostm Gsmmtion to Di&butc Suvlus Mstribi~titiom [ h c k e l No, 33251;

+

Response of First htmrara 8mk and Missouls Parking C o r n i s i o n lo Plan C ~ ~ a ~ Mocion for Order Authon'zing md D i m i n g c ' s
f";s&!Vwlm 33291;

C s ~ s r a l i o ns BQsAbute S q l u s Dis~buiisns h k e t KO. I [

rn

R v n s e of h'orihWm~cmCavolmion to -Modon of Plm Committee i n Aid of Consumation a t hplmcnta6on of b e P h for Order nd Aurltsddng md DhcGng Y o d W Goprzrtiora to Distn'bute Surplw Distributio~s [Docket KO. 34mJ;md

e

Plm Committee" %nibus R q i y lo 0)Jobt mjmion s &am Assc?z f magmesrl G o ~ m t i m and Law Deberuum Trus! a m p m y md OT) KorthWeslm Covraf.riiaa%R m w to Motion sf Vim Commitlee in

rion md Implementdon s f [he P m foir BraXer L A u h h i n g arnd arecling NonhWesfem Corporation t Diajt~bute o Surgllrs Bis&l"burions peckel No. 34151.
r'.

The Corn has revre~\~ed o ~ W e s t m N Colpomtion2 CC"Noa'bVwlePrr" a n d &
prcy W e (&e

&lend& d Re~iatQPd o f R e s r ~ l i ~ a l i o n Plan IJndw Chapter I I of Lhc
""~m'")" and rlre W e r Confirming Debtor" Second Anrend&

md Reslatcd Plar o' f

%$dm m Mllercira hltwt othemlse &fir! r r u

. :;:I t .!

h v c thE nrcening~ sscdbcd to such r c m m t Plan. . k

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".P~NI")'

and the Order Confirnling I>ebtor9s Second Amerrtled and Restated Plat1 of

Reorganization Under Chapter 11 o f tlre Bafirugtey Code entered on or abollt October 19, 2004

G.

Tlse Court has reviewed the

fallowing stipulations (collectively, the

4cStiii)~I~li~ns1'):
a

Stipulation and Order Resolving Section III of the Limited Objection of PPL Monma, ELG lo Confirmation of the Debtor" First Amended Plan of Reorghzfltion Under Chapter I I of the: Bmkruptcy Code md the Debtor's Motion Pursuant to Sections 105(ai), 363(b) and 502(a) of the Ban4rruplcy Code for Estirrlalion of PPL Montana, LLC" Claim and to Establish Disputed Claim Rescwe [Docket No. 2 1831; and

,a

Stipulariorl m ~ d Order Establishing a Disputed Clai~ns Reserve fDoeket

No.23 173 (the ""QUIPS Litjigation Reserve Stipulation'").
3

The Motion is premature in view o f the litigation surrounding the unresolved ard

disputed clain~sof Magten Asset Mmnngernent Covoratican ("Maglen'" m d Law Debenture
Trust Company oENew York ("Xaw Delaentwe"').

I,

There are surglus shms in ~e Disputed Claim Reserve establislied pursumt to

7 h ~ u ~ " & fi et section 7 ofthe plan,& 5 ~ i t edbje 6 F @&/GJ@/ IJ T e n L-t +/4~3710n -fS' F;KNL s ~ R P L d e 7 e r / r ; , u ~ 7 / m , Z J. Seetion 7.7 of the Plm requires 61 resolution of d disp~~ted 11 1 claims before tllere

4)
~

j G

can be any S q l u s Distribution md does not require NodhWestern to distribute Surlplus
Distribution from the Disputed Clairns Kesewe every six (6) mcsnlhs from the Effective Date of the Plan.

K,

The QUIPS Litigatiorr Reserve Stipulation applies to protect potential distribution

to Magtcn and Law Debenture in thcs event tlleir recovery exceeds the segregated reservc

provided for tllerein.

L.

Section 7.7 of the Pm md the QUII% Litigation Reserve Stipulation precluaie lm

my distribution from the Disputed CKaini Resenre urltil the disputed clairns of Magteri and Law

Debelllure with respect to the QUIPS Litigation me resolved.
----.--\?aPi'ializad tcrrns used herein but tlor csherwisr:defined sllall havz (he meanh~gs ascribed to such terns in the Plan.

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M.
2006,

D\le and adequate notice was provided to the SEC aid the SEC: did not tile any

responsive pleadings in comeclior~ with the Motion or apgsea before the (:owl on J m u q I I ,

TIZEREFOKEj;, I T IS ZIEESlEBW OmEwD, ADJIIUGED, AND UECWED TWA"T:
1,

The Motion is TIENIED.

2

Tile SEC is baared from asserring any cltliln against Nort1.1Wresternpursu~mt the to

Hm Data Order, the Plm and the Cenfimation Order.
3.
Notvvilhstmding mflhing to the c o n u q herein, consistent with Section 10.8 of

the Plm, notlring in this Order shall release ally non-Debtor, includir~g officer andor director my

of the Debtor aneb/or my Nan-Debtor included in the Released Padies, from liability to the SllC,

in cormection G& my legal actican brought by such governmental ~lnit against such person(s).
4.

This Order shall t&e effect irnmedrately ulysn its entry.
'nis Csufi sl~all retain jurfsdietion to hem and deternine all niatters sing from

5,

the implementation ofthis Order,

Dated: Wilmingon, Delaware F'ebnrary 2006

e,

c" ."

XTED STAmS BANKRUPTCY JUDGE

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TRANSMITTAL SHEET FOR APPEAL SUBMITTED TO U.S. DISTRICT COURT Case Number: 03-12872 Deputy Clerk Transferring Case: Lisa M. Ciconte (302) 252-2900 ext. 5115 Case Type: Appeal - AP-06-13 and AP-06-14 Order and Date Entered Order Denying Motion of the Plan Committee in Aid of Consummation and Implementation of the Plan for Order Authorizing and Directing Northwestern Corporation to Distribute Surplus Distributions (Related Doc # 3308) Order Signed on 2/2/2006 Debtor: Counsel: NorthWestern Corporation Dennis A. Meloro Greenberg Traurig, LLP The Nemours Building 1007 North Orange Street, Suite 1200 Wilmington, DE 19801 (302) 661-7000

Telephone:

Appellant(s): Counsel:

Telephone:

Plan Committee Eric M. Sutty The Bayard Firm 222 Delaware Avenue, Suite 900 Wilmington, DE 19899 (302) 655-5000

Appellant(s): Counsel:

Telephone:

Ad Hoc Committee of Class 7 Debtholders Adam G. Landis Landis, Rath & Cobb LLP 919 Market Street, Suite 600 Wilmington, DE 19801 (302) 467-4400

Appellees: Counsel:

Telephone:

NorthWestern Corporation Dennis A. Meloro Greenberg Traurig, LLP The Nemours Building 1007 North Orange Street, Suite 1200 Wilmington, DE 19801 (302) 661-7000

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Appellees: Counsel:

Telephone:

Magten Asset Management Corporation Elio Battista, Jr. Blank Rome LLP 1201 Market Street, Suite 800 Wilmington, DE 19801 (302) 425-6400

Appellees: Counsel:

Telephone:

Law Debenture Trust Company of New York Kathleen M. Miller Smith, Katzenstein & Furlow LLP 800 Delaware Avenue, 7th Floor Wilmington, DE 19899 (302) 652-8400