In re:

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE
Chapter 11
ELECTROGLAS, INC., et al.,
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Case No. 09-12416 (PJW)
Debtors. Jointly Administered
Related Docket No. 542
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ORDER SUSTAINING THIRD OMNIBUS OBJECTION OF THE DEBTORS AND
DEBTORS-IN-POSSESSION TO CLAIMS PURSUANT TO SECTION 502 OF THE
BANKRUPTCY CODE AND RULE 3007 OF THE FEDERAL RULES
OF BANKRUPTCY PROCEDURE (SUBSTANTIVE OBJECTION)
Upon consideration ofthe Third Omnibus Objection of the Debtors and Debtors-
in-Possession to Claims Pursuant to Section 502 ofthe Bankruptcy Code and Rule 3007 of the
Federal Rules of Bankruptcy Procedure (Substantive Objection) (the "Objection");
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and the
Court, having reviewed and considered the Objection, finds that the Objection is well taken; that
the Court has jurisdiction to consider the Objection and the relief requested therein pursuant to
28 U.S.C. 157 and 1334; and that consideration of the Objection and the requested relief is a
core proceeding that the Court may determine pursuant to 28 U.S.C. 157(b); and that venue is
proper before this Court pursuant to 28 U.S.C. 1408 and 1409; and that due and proper notice
of the Objection has been given under the particular circumstances, all parties in interest have
been afforded an opportunity to be heard, and no other or further notice need be provided; and
that the relief requested therein is in the best interests of the Debtors, their estates, their creditors,
and other parties in interest; and that cause exists to sustain the Objection; and upon all of the
2
The Debtors are Electroglas, Inc. and Electroglas International, Inc.
Capitalized terms used but not otherwise defined herein shall have the meaning ascribed
to them in the Objection.
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proceedings had before the Court; and upon the record herein; and after due deliberation thereon;
and good and sufficient cause appearing therefor, it is hereby
ORDERED, ADJUDGED, AND DECREED that the Objection hereby is
SUSTAINED; and it is further
ORDERED, ADJUDGED, AND DECREED that pursuant to Bankruptcy Code
section 502(b) and Bankruptcy Rule 3007, the Claims listed in Exhibit A attached to the
Objection (with the exception ofthe Claims ofQinghong K. Gao) are hereby disallowed in their
entirety and expunged; and it is further
ORDERED, ADJUDGED, AND DECREED that pursuant to Bankruptcy Code
section 502(b) and Bankruptcy Rule 3007, the Claims listed in Exhibit B attached to the
Objection (with the exception of the Claim ofRDC Machine) are hereby reduced to the
respective amounts set forth in the 'Modified Amount' column of Exhibit B to the Objection;
and it is further
ORDERED, ADJUDGED, AND DECREED that pursuant to Bankruptcy Code
section 502(b) and Bankruptcy Rule 3007, the Claims listed in Exhibit B attached to the
Objection (with the exception ofthe Claim ofRDC Machine) are hereby reclassified in the
respective classification status(es) set forth in the 'Modified Classification Status' column of
Exhibit B to the Objection; and it is further
ORDERED, that this Order is without prejudice to the right of the Committee
and/or the Unsecured Creditor Carveout Trustee (as defined in Debtors' Plan of Liquidation
under Chapter 11 of the Bankruptcy Code) to assert objections to the allowance and/or
classification of the claims addressed herein at a future date; and it is further
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..
ORDERED that the Hearing on the Objection as it relates to the Claims of
Qinghong K. Gao and RDC Machine is continued to the Hearing scheduled for June 16, 2010 at
9:30 a.m. (ET); and it is further
ORDERED, ADJUDGED, AND DECREED that the Debtors may amend,
modify, or supplement the Objection, and may file additional substantive and non-substantive
objections to claims filed in these cases, including the claims identified on the Objection; and it
is further
ORDERED, ADJUDGED, AND DECREED that the Debtors and the claims
agent, Omni Management Group, LLC, and the Clerk of this Court are authorized to take all
actions necessary or appropriate to give effect to this Order; and it is further
ORDERED, ADJUDGED, AND DECREED that, to the extent that the Objection
fails to comply with Local Rule 3007-1, such non-compliance is non-material and is hereby
waived; and it is further
ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction over any and all matters arising from or related to the implementation or
interpretation of this Order; and it is further
ORDERED, ADJUDGED, AND DECREED that notwithstanding any
Bankruptcy Rule to the contrary, this Order shall take effect immediately upon signature.
M orllf'..-_
The Honorable Peter . Walsh
Dated:
United States Bankruptcy Judge
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