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, et al., Debtors. / RESPONSE OF TRANSPORTATION SERVICES, INC. TO THE COLLINS & AIKMAN LITIGATION TRUSTS SEVENTY-FIRST OMNIBUS OBJECTION TO CLAIMS (INSUFFICIENT BOOKS AND RECORDS) Transportation Services, Inc. (hereinafter TSI), by and through its attorneys, Kupelian Ormond & Magy, P.C., hereby submits its response to the Collins & Aikman Litigation Trusts Seventy-First Omnibus Objection to Claims (Insufficient Books and Records) (the Objection) as it relates to the Proof of Claim asserted by TSI, numbered 1768 (the Claim), and states as follows: 1. On or about May 17, 2005 (the Petition Date) each of the Debtors filed Case No. 05-55927-SWR Hon. Steven W. Rhodes Chapter 11 (Jointly Administered)
voluntary petitions under Chapter 11 of Title 11 of the United States Code (the Bankruptcy Code), thereby commencing the above-captioned cases. 2. On or about December 8, 2005, TSI timely filed the Claim, including all
relevant supporting documentation evidencing the debt owed by Debtors to TSI related to the pre-petition services rendered by TSI to and for the benefit of the Debtors. See Exhibit 1 attached hereto. 3. On July 30, 2008, the Collins & Aikman Litigation Trust (the Trust), as
successor to the Debtors, filed its Seventy-First Omnibus Objection to Claims (the Objection), which included TSIs Claim.
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except to indicate that the Claim could not be reconciled with the Debtors books and records. 5. In accordance with Rule 3003(c)(4) of the Federal Rules of Bankruptcy
Procedure (the Bankruptcy Rules), [a] proof of claim or interest executed and filed in accordance with this subdivision shall supercede any scheduling of that claim or interest pursuant to 521(1) of the Bankruptcy Code. Furthermore, in accordance with Rule 3001(f) of the Bankruptcy Rules, [a] proof of claim executed and filed in accordance with these rules shall constitute prima facie evidence of the validity and amount of the claim. 6. Therefore, pursuant to Rule 3001(f) of the Bankruptcy Rules, the Trust has
the burden of producing evidence rebutting the prima facie validity of TSIs Claim. See, e.g., In re Lanza, 51 B.R. 125, 127 (Bankr. D.N.J. 1985) (onus is on the debtor to overcome the presumption of validity). 7. To satisfy this burden, the Trust must present a substantial factual basis
to overcome the prima facie validity of a proof of claim [and] [t]his evidence must be of a probative force equal to that of the creditors proof of claim. In re Hinkley, 58 B.R. 339, 348 (Bankr. S.D. Tex. 1986); see also In re Reilly, 245 B.R. 768, 773 (2d Cir. B.A.P. 2000) ([t]o overcome this prima facie evidence, the objecting party must come forth with evidence which, if believed, would refute at least one of the allegations essential to the claim). 8. The Trust has offered no evidence in support of the objection to the Claim
asserted by TSI.
9.
to the Objection is a defendant in presently pending preference actions, and therefore, such claimants cannot recover on their claims pursuant to 11 U.S.C. 502(d). 10. However, on or about August 15, 2008, the Trust and TSI entered into a
Stipulation of Settlement (the Settlement) to resolve any pending preference action between the parties, wherein the Debtors covenanted that TSIs waiver and release of claims pursuant to the Settlement shall not apply to any previously filed or scheduled claim(s). . . and nothing herein shall be deemed or construed to prejudice or impair such claims. See Exhibit 2 attached hereto. 11. TSIs Claim is a previously filed claim, antedating the Settlement by
almost three (3) years, and pursuant to the Settlement, the Trust agreed to allow TSIs Claim.. 12. TSI has fully resolved all preference claims asserted by the Trust, and
therefore, is entitled to recover on its Claim. WHEREFORE, TSI respectfully requests that this Court (i) overrule the Objection to the extent that that Objection relates to TSIs claims, and (ii) grant TSI such other and further relief as this Court deems just and proper. Respectfully submitted, KUPELIAN ORMOND & MAGY, P.C. By: /s/_Terrance A. Hiller, Jr.________ Terrance A. Hiller, Jr. (P55699) Attorney for Transportation Services, Inc. 25800 Northwestern Hwy., Suite 950 Southfield, MI 48075 248.357.0000 tah@kompc.com
EXHIBIT 1
EXHIBIT 2
SETTLEMENT AGREEMENT
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION DETROIT IN RE: Collins & Aikman Corporation, et al., Chapter 11 Case No. 05-55927-SWR (Jointly Administered) Hon. Steven W. Rhodes /
Debtors.
CERTIFICATE OF SERVICE Tina L. Johnson certifies that on the 28th of August 2008, she served a copy of the Response of Transportation Services, Inc. to the Collins & Aikman Litigation Trusts Seventy First Omnibus Objection to Claims (Insufficient Books and Records), as well as this Certificate of Service, by placing same in an envelope with sufficient postage thereon, and depositing same in a United States mail receptacle in the City of Southfield, Michigan to: Eugene H. Boyle, Jr., Esq. H. William Burdett, Jr. Boyle Burdett 14950 East Jefferson, Suite 200 Grosse Pointe Park, MI 48230
/s/ Tina L. Johnson Tina L. Johnson Kupelian Ormond & Magy, P.C. 25800 Northwestern Hwy., Suite 950 Southfield, MI 48075 (248) 357-0000 tlj@kompc.com
2228-1003/117584