Free Letter - District Court of Delaware - Delaware

Case 1:O4—cv-00951-JJF Document 45 Filed O4/13/2005 Paget of 3
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April 13, 2005
BY HAND DELIVERY
The Honorable J osepl:1 J. Farnan, Jr.
United States District Court
J. Caleb Boggs Federal Building
844 N. King Street
Lockbox 18
Wilmington, DE 19801
Re: JPMorgan Chase Bank v. U.S. Bank National
Association, C.A. No. 04-95l (HF; (D. Del.)
Dear Judge iiarnan:
As you know, U.S. Bank National Association (“U.S. Bank") and JPMorgan Chase
Bank ("JPMorgan”), in their respective capacities as trustees, are parties to an appeal from
the United States Bankruptcy Court for the District of Delaware ("Bankrttptcy Court")
relating to distributions under the confirmed plan of reorganization (‘“Plan") of Oakwood
Homes Corp. and its affiliates ("Debtors”) [Bankruptcy Case No. 02-13396]. Pursuant to
order dated July 6, 2004 ("Reserve Order"), the Bankruptcy Court conditioned a stay
pending appeal on JPMorgan posting a bond or letter of credit as security for any econornic
loss to creditors of the Debtors pending JPMorgan’s appeal of the Reserve Order. The
Reserve Order appeal is fully briefed and awaiting decision from this Court.
As you also know, U.S. Bank and JPMorgan are parties to a second appeal from the
Bankruptcy Court regarding allowance of claims of JPl\/[organ as part of the bankruptcy case
("Clairns Orders"). Pursuant to order dated February 17, 2005, this Court affirmed the
decisions ofthe Bankruptcy Court. JPMorgan has appealed the February 17, 2005 decision
of this Court; to the Third Circuit Court of Appeals.
By its rnernorandurn and order dated September 28, 2004 ("Stay Order") [C.A. No.
04-951, D.I. 22], this Court granted the emergency motion of JPl\/{organ for a stay pending

Case 1:04-cv-00951-JJF Document 45 Filed O4/13/2005 Page 2 of 3
The Honorable Joseph J. Farnan, Jr.
April 13, 2005
Page 2
appeal of the Claims Orders and Reserve Order without posting a bond. The Stay Order
provides that distribution of approximately $61,000,000 under the Debtorsf Plan shall be
stayed without posting a bond pending successful mediation or final resolution of the
Reserve Order appeal. On October 8, 2004, U.S. Bank filed a motion to reconsider ("l\/lotion
to Reconsider") the Stay Order, which motion is currently pending in this Court.
By consent of the parties, mediation of the Reserve Order appeal concluded and this
Court entered its briefing schedule for the Reserve Order appeal. As noted above, the parties
have fully briefed the appeal and are awaiting a decision or oral argument before this Court.
In recent discussions regarding the Claims Orders appeal to the Third Circuit, U.S.
Bank learned that JPMorgan contends that the Stay Order operates to stay any distribution of
the approximately $6l,000,000 in cash under the Plan until final resolution of the Reserve
Order appeal through the Third Circuit Court of Appeals. U.S. Bank contends that the Stay
Order only operates to stay distribution of the approximately $61,000,000 in cash only
through final resolution of the Reserve Order appeal by this Court. Thereafter, lPMorgan
must seek a stay pending appeal with the Third Circuit Court of Appeals.
U.S. Bank respectfully requests that this Court schedule a hearing on its Motion to
Reconsider to clarify this issue prior to a ruling on the Reserve Order appeal. ln light of the
fact that this Court affirmed the decisions of the Bankruptcy Court regarding the Claims
Orders, JP}/lorgan’s interpretation ofthe Stay Order, to the extent correct, unfairly prejudices
the rights of U.S. Bank and its constituency.
Rgppectfully/ig; oursgl . ,
ix 7
Karen C.Bifferato
cc: Clerk, U.S. District Court (by hand)
Russell C. Silberglied, Esq. (by hand)
Robert J. Dehney, Esq. (by hand)
Eric L. Schnabel, Esq. (by hand)
Mark S. Kenney, Esq. (by hand)
Christopher D. Loizides, Esq. (by hand)
William F. Taylor, Jr., Esq. (by hand)
Laurie Selber Silverstein, Esq. (by hand)
Robert J. Stark, Esq. (by facsimile and first-class rnail)
M. William Munno, Esq. (by facsimile and tirst-class mail)
Robert C. Goodrich, Jr., Esq. (by facsimile and tirst-class mail)
Michael J. Reilly, Esq. (by facsimile and first—class mail)

Case 1:04-cv-00951-JJF Document 45 Filed O4/13/2005 Page 3 of 3
The Honorable J osepb J. Faman, fr.
April 13, 2005
Page 3
Timothy B. DeSieno, Esq. (by facsimile and iirsvclass mail)
Steven G. Varner, Esq. (by facsimile and firsbclass mail)
Alex P. Herrington, Jr., Esq. (by facsimile and first—c1ass mail)
Peter Partee, Esq. (by facsimile and first-class mail)
Rheba Rutkowski, Esq. (by facsimile and iirsbclass mail)
G. Eric Brunstaci, Jr., Esq. (by facsimile and first-—class mail)
Michael B. Fisco, Esq. (by facsimile and first-class mail)
Abby E. Wilkinson, Esq. (by facsimile and firsaclass mail)
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