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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DISTRICT

) Chapter 11 ) Case No. 05-55927 (SWR) COLLINS & AIKMAN CORPORATION, et al., ) ) Jointly Administered ) Debtors. ) Honorable Stephen W. Rhodes ______________________________________________________________________________ JOINDER OF JPMORGAN CHASE BANK, AS PREPETITION AGENT, IN SUPPORT OF COMMENTS OF C&A LITIGATION TRUST TO PROPOSED ORDER REGARDING MEDIATION JPMorgan Chase Bank, N.A., as administrative agent (the Pre-Petition Agent) for the pre-petition senior secured lenders (the Pre-Petition Lenders), by its counsel, Wachtell, Lipton, Rosen & Katz and Dykema Gossett PLLC, hereby files this Joinder in Support of the Comments of the C&A Litigation Trust (the Trust) to the Proposed Order Regarding Mediation of Preference Litigation (the Mediation Order), and respectfully states as follows: 1. The Pre-Petition Lenders are the beneficiaries of a 75 percent economic stake in

In re:

the Trust. The approximately 870 outstanding preference actions seeking the return of over $470 million of pre-petition transfers by the Debtors are among the Trusts principal assets. 2. On October 1, 2007, this Court issued its Request for Comments on Proposed

Order Regarding Mediation. On October 15, 2007, the Trust filed its Comments to Proposed Order Regarding Mediation of Preference Litigation (the Trusts Comments), which were formulated by the Trust in consultation with, inter alia, the Pre-Petition Agents counsel.

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3.

The Pre-Petition Agent supports the modifications to the Mediation Order

requested in the Trusts Comments. As discussed below, two of the Trusts Comments are of particular importance to the Pre-Petition Agent. 4. First, for all of the reasons set forth by the Trust in its objection to the selection of

Messrs. Erman and Rochkind (and other designated attorneys in their firms) as mediators, the Pre-Petition Agent believes that such appointments are inappropriate given that their law firms together represent the defendants in over 90 ongoing preference actions seeking to recover nearly $30 million. This raises not only an impermissible appearance of impropriety, but indeed actual conflicts of interest on the part of individual attorneys designated to mediate, neither of which barriers can be remedied by an ethical wall. The Pre-Petition Agent joins in the Trusts request that the Court appoint only truly neutral mediators, whose firms do not represent any of the defendants in the preference actions. 5. Second, the Pre-Petition Agent is concerned that the Mediation Order both control

and fairly allocate the costs of the mediation program, so as to maximize the value of the Trusts assets. The Pre-Petition Agent believes that both sides in the preference actions will share in the benefits of mediation -- working toward achieving fair and mutually agreeable settlements in a cost- and time-efficient manner -- and hence it is only fair that the defendants should bear equal responsibility with the Trust for paying the fees and expenses of mediation. Moreover, the PrePetition Agent agrees with the Trusts request that flat fees for Track I and Track II actions be set by dividing the per diem rate by the number of mediations anticipated to occur each day. This recommendation will cap the costs of mediation and create an incentive for the mediator to proceed as efficiently as possible when approaching each individual case. In the Pre-Petition

Agents view, a flat fee structure will contribute both reduction and certainty to the overall cost of the mediation program. WHEREFORE, the Pre-Petition Agent respectfully requests that the Trusts Comments be incorporated into the Mediation Order, together with such other and further relief as may be just and proper. Respectfully submitted, DYKEMA GOSSETT PLLC

By: /s/ Ronald L. Rose Ronald L. Rose (P19621) 39577 Woodward Ave., Suite 300 Bloomfield Hills, MI 48304 (248) 203-0519 and -

Harold S. Novikoff David C. Bryan WACHTELL, LIPTON, ROSEN & KATZ 51 West 52nd Street New York, New York 10019 (212) 403-1000 Attorneys for JPMorgan Chase Bank, N.A., as PrePetition Agent Dated: October 15, 2007
BH01\808159.1 ID\RLR

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