Free Response - District Court of Connecticut - Connecticut

Case 3:02-cv-01725-AWT Document 1 14 Filed 12/17/2007 Page 1 of 4
UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
IN RE SCOTT CABLE COMMUNICATIONS, INC.,
Debtor
N0. 3:02-CV-1725 (AW I )
UNITED STATES OF AMERICA, Consolidated Bankruptcy Appeals
Appellant (Bankruptcy Coun Case No.
98-5 1923)
v.
SCOTT CABLE COMMUNICATIONS, INC.,
STATE STREET BANK AND TRUST COMPANY,
as Trustee for certain note holders and AKIN, GUMP,
STRAUSS, HAUER & F ELD, LLP,
AppeHees
RESPONSE OF U.S. BANK NATIONAL ASSOCIATION,
AS INDENTURE TRUS'l`EE, TO THE MOTION OF THE COMMONVVEALTH OF
VIRGINIA, DEPARTMENT OF TAXATION TO PRESENT A STATEMENT IN
SUPPORT OF THE UNITED STATES
U.S. Bank National Association, successor to State Street Bank and Trust
Company, as Indenture Trustee (the "Indenture Trustee" or "U.S. Bank") for the 16%
Junior Subordinated Secured PIK Notes (the "]unior Secured Notes") and an Appellee in
the above matter, by and through its undersigned counsel, hereby respectfully submits
this Response to the Motion 0f the Commonwealth of Virginia, Department of Taxation to
Present a Statement in Support of the United States dated November 26, 2007 (the
"Virginia Motion”). For the reasons outlined and addressed briefly herein, the Virginia
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Case 3:02-cv-01725-AWT Document 114 Filed 12/17/2007 Page 2 of 4
Motion should be denied and the statement attached to the Virginia Motion should be
stricken from the record.
The Commonwealth of Virginia, Department of Taxation, is not a party to the
instant appeal. Moreover, the only matter that is now properly before this Court is a
rehearing motion in which the United States has challenged the decision rendered by this
Court in this appeal. This is not the proper forum or stage of the proceedings for a non-
party filing such as that proposed. This appeal was filed in 2002, and it has already been
heard and decided by this Court. The Commonwealth of Virginia, Department of
Taxation, has never been a party or at any time throughout the duration of this appeal
sought to intervene or be heard in this matter. It is inappropriate for such a non—party, at
this stage in the proceedings, to file such a pleading in an effort to lend support to a
rehearing motion.
It is apparent from the substance of this filing that the Commonwealth of Virginia
is simply seeking some advantage for the United States, and indirectly in its view, itself,
in the litigation pending in the United States Bankruptcy Court for the District of
Delaware in which the United States has sought to reprioritize the rights of secured
noteholders (the "Delaware Adversary Proceeding"). The statement attached to the
Virginia Motion on its face and substantively is a pleading in support of arguments not
going directly to this appeal, but rather going to the issues that are being fully addressed
on the merits in the Delaware adversary proceeding. The Commonwealth of Virginia is,
by its own admission, not a party in the Delaware Adversary Proceeding either. The
Virginia Motion is an attempt to argue in favor of recharacterization and equitable
subordination, issues not properly before this Court.
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Case 3:02-cv-01725-AWT Document 114 Filed 12/17/2007 Page 3 of 4
The Appellee has argued that the rehearing motion and subsequent filings by the
United States are an improper attempt to seek some advantage in the Delaware
proceedings. This filing by the Commonwealth of Virginia is similarly an improper
attempt to do the same thing, but even worse by an entity that is neither a party to this
appeal nor a party to the Delaware adversary proceeding.
For reasons including those set forth above, the Virginia Motion should be denied.
Dated: December 17, 2007
Hartford, Connecticut
U.S. BANK NATIONAL
ASSOCIATION, AS INDENTURE 1
TRUSTEE,
By /s/ Kathleen M. LaManna
Ira H. Goldman (ct05 656) _
Kathleen M. LaManna (ct06740)
Marie C. Pollio (ct26644)
For Shipman & Goodwin LLP
One Constitution Plaza
Hartford, CT 06103
_ (860) 251-5000
Its Attorneys
492540 v.02
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Case 3:02-cv-01725-AWT Document 114 Filed 12/17/2007 Page 4 of 4
CERTIFICATE OF SERVICE
This is to certify that the foregoing Response of U.S. Bank National Association,
as Indenture Trustee, was filed via the Cou1t’s ECF system which will result in service on
all parties entitled thereto on the 17th day of December, 2007.
Daniel Golden, Esq.
Mitchell Hurley, Esq.
Shuba Satyaprasad, Esq.
Akin, Gump, Strauss, Hauer & Feld, LLP
590 Madison Avenue
New York, NY 10022
Peter Sklarew, Esq.
A Alan M. Shapiro, Esq.
U.S. Department of Justice
P.O. Box 55
Ben Franklin Station,
Washington, DC 20044
/s/ Kathleen M. LaManna
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