Free Redacted Document - District Court of Delaware - Delaware

Case 1:04-cv-01551-JJF Document 163-6 Filed 11/02/2006 Page 1 014

Case 1:04-cv-01551-JJF Document 163-6 Filed 11/02/2006 Page 2 of 4
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

in re: ¥
: Chapter 7
STUDENT FINANCE CORPORATION, : '
1 Case No. O2—11620—JBR
Debtor. :
_ Z REI ·1>O€.l ORDER APPROVING SETTLEMENT BETWEEN
THE TRUSTEE AND ROYAL INDEMNITY COMPANY
{DOCKET NO. 883)
. +*1
AND NOW, this qgjday of October, 2004, upon the motion of Charles A. Stanziale, Jr.,
Chapter 7 Trustee (the "Chapter 7 Trustee") of the estate of the above—captioned debtor (the
"Debtor") to Approve Settlement with Royal Indemnity Company (the "Motion") seeking entry
of an Order approving the Settlement'; the Court having reviewed the Motion; it appearing to the
Court that: (a) it has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334 and
(b) this is a core proceeding pursuant to 28 U.S.C. § l57(b)(2); the Court finding that due and
adequate notice of the Motion has been given by the Chapter 7 Trustee; and the Court being fully
advised and having determined that the legal and factual bases set forth in the Motion establish
`just cause for the relief granted herein. hereby rules as follows:
l. The Motion is GRANTED.
2. The Settlement Tenn Sheet (the "Term Sheet") attached hereto as Exhibit "l",
which is incorporated by reference as if fully set forth herein, shall be. and hereby
is, APPROVED.
ltgplpitttlizctl terms not tlcfinecl herein shall hurt: the meanings ascribed to such terms in the Motion.

Case 1:04-cv-01551-JJF Document 163-6 Filed 11/02/2006 Page 3 of 4
3. The Chapter 7 Trustee and Royal are hereby authorized, without further order of
the Court, to enter into all assignments and other agreements necessary to fultill
the terms of the Term Sheet, and to take any and all other actions necessary to
consummate the terms of the Term Sheet in accordance with this Order.
4. The Chapter 7 Trustee and Royal are hereby authorized, without further order of
the Court, to take any and all actions consistent with, and otherwise act in
accordance with the terms of the Term Sheet.
5. Royal shall have an allowed unsecured pre-petition claim against the estate in the
amount of $516,622%,682, and an allowable secured pre—petition claim against the
estate in the amount of $15,799.010 Royal may amend these allowed claims
from time to time (notwithstanding any bar date) in order to reflect its loss up to
the date on which the Trustee proposes to make a final distribution or close the
estate.
6. lf, and to the extent that, the summary judgment that was entered in the United
States District Court for the District of Delaware against Royal is finally reversed,
vacated or modified so as to result in a lesser loss to Royal, the amount of Royal’s
allowed unsccurerl pre-petition claim shall be reduced accordingly so as to reflect
the actual amount ol` Royal`s loss.
7. Royal‘s secured pre~petition claim of $15,799,010 shall be allowed to the extent
of the value of the collateral underlying that claim. To the extent that the value of
such collateral is less than $15.799.010 any deficiency shall he treated as an

Case 1:04-cv-01551-JJF Document 163-6 Filed 11/02/2006 Page 4 of 4
additional unsecured claim of R0yal’s and shall be added to Royal‘s allowed
unsecured pre·petition claim of $516,628,68Z.
B. The Court shall retain jurisdiction over any matter or dispute arising from or
relating to the Settlement and/or implementation of this Order.
9. Any professional seeking fees from the estate shall submit an appropriate
application to the Court.
B. »&¤¢»¢`*fi•V
-— e Honorable Joel B. Rosenthal
United States Bankruptcy Ju ge