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    United States Bankruptcy Court For The Eastern District of Michigan Southern Division - Detroit

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    Chapter 11 Dockets
    Unifi Manufacturing Inc. and Unifi Textured Polyester LLC filed a response to Collins & Aikman Litigation Trust's Seventy-Ninth Omnibus Objection to Claims. Unifi asserts that their claims of $4,989,886.23 and $2,423,172.51 were previously determined to be allowed as nonpriority unsecured claims. The objection alleges Unifi's claims should be disallowed due to an adversary proceeding brought by the Debtors to recover avoidable transfers, but Unifi denies any liability in that proceeding. Unifi argues the objection provides no evidence to overcome the prima facie validity of their claims, and the objection is premature until the adversary proceeding is resolved.

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    United States Bankruptcy Court For The Eastern District of Michigan Southern Division - Detroit

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    Chapter 11 Dockets
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    Unifi Manufacturing Inc. and Unifi Textured Polyester LLC filed a response to Collins & Aikman Litigation Trust's Seventy-Ninth Omnibus Objection to Claims. Unifi asserts that their claims of $4,989,886.23 and $2,423,172.51 were previously determined to be allowed as nonpriority unsecured claims. The objection alleges Unifi's claims should be disallowed due to an adversary proceeding brought by the Debtors to recover avoidable transfers, but Unifi denies any liability in that proceeding. Unifi argues the objection provides no evidence to overcome the prima facie validity of their claims, and the objection is premature until the adversary proceeding is resolved.

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    Unifi Manufacturing Inc. and Unifi Textured Polyester LLC filed a response to Collins & Aikman Litigation Trust's Seventy-Ninth Omnibus Objection to Claims. Unifi asserts that their claims of $4,989,886.23 and $2,423,172.51 were previously determined to be allowed as nonpriority unsecured claims. The objection alleges Unifi's claims should be disallowed due to an adversary proceeding brought by the Debtors to recover avoidable transfers, but Unifi denies any liability in that proceeding. Unifi argues the objection provides no evidence to overcome the prima facie validity of their claims, and the objection is premature until the adversary proceeding is resolved.

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    37 views4 pages

    United States Bankruptcy Court For The Eastern District of Michigan Southern Division - Detroit

    Uploaded by

    Chapter 11 Dockets
    Unifi Manufacturing Inc. and Unifi Textured Polyester LLC filed a response to Collins & Aikman Litigation Trust's Seventy-Ninth Omnibus Objection to Claims. Unifi asserts that their claims of $4,989,886.23 and $2,423,172.51 were previously determined to be allowed as nonpriority unsecured claims. The objection alleges Unifi's claims should be disallowed due to an adversary proceeding brought by the Debtors to recover avoidable transfers, but Unifi denies any liability in that proceeding. Unifi argues the objection provides no evidence to overcome the prima facie validity of their claims, and the objection is premature until the adversary proceeding is resolved.

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    UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION - DETROIT ____________________________________ ) In re ) Chapter 11 ) COLLINS

    & AIKMAN CORPORATION, ) Case No. 05-55927 (SWR) et al., ) Jointly Administered ) Debtors. ) Judge Steven W. Rhodes ____________________________________) RESPONSE OF UNIFI MANUFACTURING INC. AND UNIFI TEXTURED POLYESTER LLC TO LITIGATION TRUSTS SEVENTY-NINTH OMNIBUS OBJECTION TO CLAIMS Unifi Manufacturing Inc. and Unifi Textured Polyester LLC (collectively, Unifi), file this response to the Collins & Aikman Litigation Trusts Seventy-Ninth Omnibus Objection to Claims (the Objection) [Docket No. 9878] and in support thereof state as follows: 1. Unifi timely filed proofs of claim nos. 6067 and 5993, which, pursuant to

    previous objections by the Collins & Aikman Litigation Trust (the Trust) and orders thereon, are allowed as nonpriority unsecured claims in the amounts of $4,989,886.23 and $2,423,172.51, respectively. 2. In the Objection, the Trust alleges that Unifis claims should be disallowed

    for the reason that Unifi is subject to an adversary proceeding brought by the Debtors to recover property or an avoidable transfer, and thus Unifis claims should be disallowed and expunged pursuant to 11 U.S.C. 502(d). 3. The Debtors have commenced an adversary proceeding against Unifi, adv.

    proc. no. 07-05600 (the Adversary Proceeding), to recover allegedly preferential payments, and Unifi has filed an answer denying any liability for the allegedly

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    preferential payments and has otherwise defended against the Debtors assertions made in the Adversary Proceeding. 4. 11 U.S.C. 502(d) provides that the court shall disallow any claim of an

    entity from which property is recoverable under section * * * 550 * * * or that is a transferee of a transfer avoidable under section * * * 547 * * *. 5. The bare assertion by the Debtors in the Adversary Proceeding that Unifi

    received preferential payments that are avoidable and recoverable does not make it true. 6. Pursuant to Fed. R. Bankr. P. 3001(f), a properly filed proof of claim is

    prima facia evidence of the validity and amount of the claim. In re Fullmer, 962 F.2d 1463, 1466 (10th Cir. 1992). 7. To overcome this prima facie evidence, the objecting party must bring

    forward evidence equal in probative force to that underlying the proof of claim. Brown v. IRS, 82 F.3d 801, 805 (8th Cir. 1996); In re Fullmer, 962 F.2d at 1466; In re Hemingway Transport, Inc., 993 F.2d 915, 925 (1st Cir. 1993), cert. denied, 114 S. Ct. 303 (1993) (The interposition of an objection does not deprive the proof of claim of presumptive validity unless the objection is supported by substantial evidence.); In re Allegheny International, Inc., 954 F.2d 167, 173-174 (3rd Cir. 1992); 4 Collier on Bankruptcy, 502.02(3)(f) (15th ed. rev.). 8. In the Objection, the Trust has introduced no evidence that would

    overcome the prima facie validity of Unifis claims. 9. The Objection is premature, in that the claims and defenses raised in the

    Adversary Proceeding will be resolved, either through settlement or by the Court, in the Adversary Proceeding.

    DELIB:3002506.1\134991-00001

    WHEREFORE, having fully responded to the Objection, Unifi requests the following relief: 1. alternative, 2. That the Objection be continued with regard to Unifis claims pending That the Objection be denied with regard to Unifis claims; or, in the

    resolution of the claims and defenses raised in the Adversary Proceeding. Dated this 12th day of August, 2008. MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.

    _/s/ Donald J. Hutchinson_____ Donald J. Hutchinson (P39545) 150 West Jefferson Avenue, Suite 2500 Detroit, Michigan 48226 Telephone: 313-963-6420 Facsimile: 313-496-8450 hutchinson@millercanfield.com and David M. Grogan N.C. Bar No. 19570 SHUMAKER, LOOP & KENDRICK, LLP 128 South Tryon Street, Suite 1800 Charlotte, North Carolina 28202 Telephone: 704-375-0057 Facsimile: 704-332-1197 Attorneys for Unifi

    DELIB:3002506.1\134991-00001

    UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION - DETROIT ____________________________________ ) In re ) Chapter 11 ) COLLINS & AIKMAN CORPORATION, ) Case No. 05-55927 (SWR) et al., ) Jointly Administered ) Debtors. ) Judge Steven W. Rhodes ____________________________________) CERTIFICATE OF SERVICE This is to certify that the foregoing RESPONSE OF UNIFI MANUFACTURING INC. AND UNIFI TEXTURED POLYESTER LLC TO LITIGATION TRUSTS SEVENTY-NINTH OMNIBUS OBJECTION TO CLAIMS was served by placing a true and correct copy thereof in an envelope with firstclass postage affixed and by depositing the same in the United States Post Office in Detroit, Michigan, addressed to the following person: H. William Burdett, Jr., Esq. Boyle Burdett 14950 East Jefferson, Suite 200 Grosse Pointe Park, MI 48230 Dated this 12th day of August, 2008.

    _/s/ Donald J. Hutchinson_____ Donald J. Hutchinson

    DELIB:3002506.1\134991-00001

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