KLESTADT & WINTERS, LLP Ian R. Winters Sean C.

Southard Proposed Counsel to the Official Committee of Unsecured Creditors 570 Seventh Avenue, 17th Floor New York, NY 10017 (212) 972-3000

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------------x : In re: : : LEHR CONSTRUCTION CORP. : : Debtor. : : --------------------------------------------------------------x

Chapter 11 Case No. 11-10723 (SHL)

RESPONSE OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS TO MOTION OF F&G MECHANICAL CORPORATION AND MEADOWLAND FIRE PROTECTION FOR AN ORDER (I) COMPELLING IMMEDIATE PAYMENT OF POST-PETITION ADMINISTRATIVE EXPENSE CLAIMS; AND (II) COMPELLING THE DEBTOR TO ASSUME OR REJECT EXECUTORY CONTRACTS OR, IN THE ALTERNATIVE, MODIFYING THE AUTOMATIC STAY TO PERMIT MOVANTS TO TERMINATE THE EXECUTORY CONTRACTS IN THEIR SOLE DISCRETION The Official Committee of Unsecured Creditors (the Committee) of Lehr Construction Corp., debtor and debtor-in-possession in the above-captioned chapter 11 case (Debtor), by and through its counsel, Klestadt & Winters, LLP, as and for its response (Response) to the motion of F&G Mechanical Corporation and Meadowland Fire Protection (the Movants) seeking to (i) compel immediate payment of post-petition administrative expense claims, and (ii) compelling the Debtor to assume or reject executor contracts or, in the alternative, modifying the automatic stay to permit Movants to terminate the executor contracts (the Motion), hereby sets forth as follows:

Factual Background 1. The Debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy

Code with the United States Bankruptcy Court for the Southern District of New York on February 21, 2011 (the Petition Date). 2. 3. The Debtor is a builder in New York City specializing in interior construction. On March 11, 2011, the Office of the United States Trustee appointed the

Committee, which consists of the following five (5) members: (i) Robert Samuels, Inc., (ii) Superior Acoustics, Inc., (iii) Marlin, Inc., (iv) Rockmor Electric Enterprises, Inc., and (v) BP Mechanical Corp. 4. 5. The Movants filed the Motion on March 14, 2011. On March 15, 2011, the Committee selected Klestadt & Winters, LLP as its

counsel to represent the Committee in all matters relating to the Debtors Chapter 11 case. 6. On March 21, 2011, the Debtor filed its limited objection to the Motion (the

Debtors Objection). RESPONSE 7. The Committee generally agrees with and supports the positions set forth in

Debtors Objection that postpetition services and goods provided by Movants are entitled to administrative priority. 8. No evidence has been provided by the Movants concerning the completion of the

jobs in question and/or the portion of such goods and services provided after the Petition Date. It appears that the Debtor disputes the amounts in question for which Movants seek payment and the Committee reserves all rights concerning the extent to which benefit was conferred on this estate following the Petition Date.

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In accordance with the ample authority within this District and on the assumption

that the agreements between the Movants and the Debtor are executory, the Committee believes that the Debtor should be afforded additional time before it is compelled to assume or reject executory contracts in this case. Requiring the Debtor to assume an executory contract at this early stage of the case risks substantial administrative claims accruing. 10. The immediate payment requested by the Movants from the Debtor following

receipt of funds under the NBA project is also problematic to the Committee since it may jeopardize the Debtors cash flow and may serve to accelerate the ordinary course entitlements of the Movants to payment. WHEREFORE, the Committee requests that this Court fashion any relief granted to the Movants in accordance with the positions set forth in this Response. Dated: New York, New York March 22, 2011 Respectfully submitted,
KLESTADT & WINTERS, LLP Proposed Counsel to the Official Committee of Unsecured Creditors By: /s/Sean C. Southard__________ Ian R. Winters Sean C. Southard 570 Seventh Avenue, 17th Floor New York, New York 10017

(212) 972-3000

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