Free Status Report - District Court of Arizona - Arizona

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Quarles & Brady LLP
Firm State Bar No. 00443100 One Renaissance Square Two North Central Avenue Phoenix, Arizona 85004-2391
TELEPHONE 602.229.5200

Attorneys for Defendant Xeba, Inc. André H. Merrett (State Bar No. 020889)

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA

Philips Components, Plaintiff, vs. XEBA, Inc., Racer Technologies, a division of XEBA, Inc., Racer USA, Racer Computer France, S.A., I.T.C.I., Defendants.

NO. CV-02-1632 PHX ROS JOINT STATUS REPORT REGARDING BANKRUPTCY PROCEEDINGS

Phillips Components and Xeba, Inc. in the above-captioned action hereby submit the following Status Report regarding Xeba, Inc.'s bankruptcy case pending as In re Xeba, Inc. Case Number 2:03-bk-18093-RJH (the "Xeba Bankruptcy"). According to counsel for the Trustee, the Trustee is in the process of liquidating the assets of the Estate. All litigation in Trustee's counsel's office has been resolved. The Trustee needs to complete the administration of the Estate. Claims against Xeba will be paid in the order of priority. It is expected that there will be administrative claims, and secured creditor Comerica Bank has asserted a security interest in Xeba's accounts receivable.

Case 2:02-cv-01632-ROS QBPHX\981041.70020\2137466.1

Document 51

Filed 11/07/2007

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Counsel for the Trustee was not familiar with Philips Components' claim against Xeba. However, if the claim becomes an allowed claim, Philips will be paid pro rata if there are estate assets available to pay unsecured creditors. Undersigned counsel for Xeba has spoken with Philips' counsel regarding Philips dismissal of this action. Such a dismissal seems sensible since neither counsel continue to represent the parties in the bankruptcy proceeding or otherwise and because Philips claims against Xeba may be resolved in the bankruptcy proceeding. Counsel for Philips has promised to contact his client regarding the dismissal of this action. DATED this 7th day of November, 2007. QUARLES & BRADY LLP One Renaissance Square Two North Central Avenue Phoenix, AZ 85004-2391

By s/André H. Merrett André H. Merrett Attorneys for Defendant XEBA, Inc.

By s/Harry L. Howe Harry L. Howe, Esq. 10505 North 69th Street, Suite 101

Scottsdale, Arizona 85253 Attorney for Plaintiff Philips Components

Case 2:02-cv-01632-ROS QBPHX\981041.70020\2137466.1

Document 51 -2Filed 11/07/2007

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ORIGINAL electronically filed with the District Court and a COPY of the foregoing hand-delivered to Judge Silver this 7th day of November, 2007. /Lisa Fox

Case 2:02-cv-01632-ROS QBPHX\981041.70020\2137466.1

Document 51 -3Filed 11/07/2007

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