Free Notice of Settlement - District Court of Delaware - Delaware

Case 1 :04-cv-00515-JJF Document 19 Filed O3/O9/2005 Page 1 of 3
1N TI-IE UNITED STATES DISTRICT COURT in
FOR THE DISTRICT OF DELAWARE
IN RE: FANSTEEL INC., ET AL., I )
)
Fansteel Inc., )
)
Plaintiff, ) Civil Action No. 04-515 (I JF)
)
v. ) _
) _.
Sempra Energy Sales, LLC, I ) _`
) Adversary Case No. 04-51061
Defendant. ) Bankruptcy Case No. 02-10109 (JJF) r
Objection Deadline: March 16, 2005 at 4:00 p.m. Eastern Time
Hearing Date: TBD, if necessary I
NOTICE OF SETTLEMENT OF AVOIDAN CE ACTION
Plaintiff. Fansteel, Inc., Reorganized Debtor (hereinafter referred to as "Plair1tiff"), files
this Notice of Settlement of Avoidance Action (the "Notice"). A proposed Mutual Settlement
Agreement and Release (the "Settlement Agreement") was entered into by Plaintiff and Sempra
Energy Sales, LLC (hereinafter referred to as "Defendant”), on March 7, 2005, a copy of which
is attached hereto, which Settlement Agreement provides, inter alia, the following:
I The Reorganized Debtors are the following entities; Fanstecl Inc. and Wellman Dynamics Corp.
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Case 1:04-cv-00515-JJF Document 19 Filed O3/O9/2005 Page 2 of 3 2
Name of Defendant: Sem ra Ener Sales
Civil Action No.: O4-515
Com • laint Amount: $88,725.71
Credit for New Value: - $0.00
Net Preference Claim : $88,725.71
Settlement Amount: $17,000 cash, waiver of $26,000 tiled claim
and 502(h) claim
Settlement is 38.5% of the Net Preference Claim
S • ecial Circumstances If Necessa : Substantial ordin course issues resent.
Plaintiff submits that the above Settlement Agreement is the product of arm’s-length ‘
negotiations between Plaintiff and Defendant. The Settlement Agreement represents a favorable
resolution of Plaintiffs claims and results in a cash payment and claim waiver to Plaintiff for the
benefit of creditors. Accordingly, Plaintiff further submits that the Settlement Agreement is fair
and reasonable, is in the best interest of the creditors, and is the result of the exercise of sound E
business judgment.
If you object to the terms of the settlement, you are required to file an objection to this
Settlement Agreement on or before March 16, 2005 at 4:00 p.m.
` THIS NOTICE IS SUBMITTED ON NEGATIVE NOTICE. ANY PARTY I
OBJ ECTING TO THE RELIEF REQUESTED HEREIN SHALL MAKE ITS OBJECTION I
KNOWN BY FILING AN OBJECTION TO THE PROPOSED SETTLEMENT, SERVED
UPON THE UNDERSIGNED AND FILED WITH THE COURT NO LATER THAN FIVE (5)
BUSINESS DAYS AFTER DELIVERY HEREOF. A HEARING ON THE NOTICE WILL BE
HELD AT A TIME TO BE DETERMINED BY THE COURT ONLY IF A TIMELY _
I The term "net prejizrence claim" as used herein means the total preference period transfers made to a creditor, less
the value to the Plaintiff of subsequent extensions of credit ("new value").
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Case 1:04-cv-00515-JJF Document 19 Filed O3/O9/2005 Page 3 of 3
OBJ ECTION IS FILED. IF NO SUCH OBJECTIONS ARE FILED, THE SETTLEMENT I
WILL BE DEEMED APPROVED WITHOUT FURTHER ORDER OF THE COURT.
Dated: March 9, 2005 SCHULTE, ROTH & ZABEL LLP
Jeffrey S. Sabin (J SS-7600)
David J. Ciminesi (DJ C-8156)
919 Third Avenue
New York, New York 10022
Telephone: (212) 756-2000
Facsimile: (212) 593-5955 _
AND
PACHULSK], STANG, ZIEHL, YOUNG, JONES
& WEINTRAUB P.C.
La Davis Jones (DE Bar No. 2436) .
J s E. O'Neill (DE Bar N0. 4042) J
Steven J. Kahn (CA Bar No. 76933) i
Jason S. Pomerantz (CA Bar No. 157216)
10100 Santa Monica Blvd.
1 lth Floor ,
Los Angeles, California 90067-4100
Telephone: 310/277-6910 {
Facsimile: 3 10/201 -0760 `
Counsel for Debtors and Reorganized Debtors
FANSTEEL 4
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