Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 1 of 8 UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

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1 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 1 of 8 UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS GLOBAL NAPS, INC ) Plaintiff, ) ) Civil Action No RWZ ) v. ) Civil Action No RWZ ) VERIZON NEW ENGLAND, INC. ) Defendant ) ) RECEIVER CARL F. JENKINS OMNIBUS MOTION FOR AN ORDER DISALLOWING, REDUCING OR RECLASSIFYING CERTAIN CLAIMS TO THE HONORABLE RYA W. ZOBEL UNITED STATES DISTRICT COURT JUDGE Carl F. Jenkins, as Receiver of the various Global Naps companies and affiliates (the Receiver ), pursuant to the Order of this Court dated May 6, 2010 and the Amended Order dated May 13, 2010 (the Amended Order ) appointing him as such Receiver, submits this Omnibus Motion, (the Motion ) for entry of an order disallowing, reducing or reclassifying certain claims. HISTORY OF THE CASE 1. On May 5, 2010, Carl F. Jenkins, was appointed by this Court as Receiver of Global Naps, Inc. and its subsidiaries, affiliates and related entities (the Judgment Debtors ) pursuant to an Order dated May 6, 2010, and the Amended Order. 2. Pursuant to paragraph 1 of the Amended Order, the Receiver took possession of the various personal and real property of the Judgment Debtors and managed and operated the businesses of the Judgment Debtors for the purpose of liquidating and selling the businesses, and the assets of the Judgment Debtors.

2 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 2 of 8 3. Throughout these proceedings, the Receiver has filed various motions seeking approval of the sale of substantially all of the assets of the Judgment Debtors, which sales have been approved by this Court and executed and consummated by the Receiver herein. 4. There remain certain assets of the Receivership estate, which the Receiver is endeavoring to sell, including real estate in Atlanta, and Billerica, MA On August 22, 2012, this Court entered an Order Establishing the Deadline for Filing Claims (the Bar Date Order ). Among other things, the Bar Date Order established (a) the general claim bar date by which all entities, including governmental agencies, must file claims and (b) establishing the date by which claims (including pre-receivership and post- Receivership claims) relating to unexpired executory contracts and unexpired leases must be filed. 6. Any person or entity that held a claim that arises from the rejection of an executory contract or unexpired lease which the Judgment Debtors rejected must have filed a claim based on such rejection on the date that is later of (a) the Bar Date or (b) 5:00 p.m. eastern standard time on the date that is forty-five (45) days after the rejection date. RELIEF REQUESTED AND BASIS FOR RELIEF 7. The Receiver seeks the entry of an order disallowing, reducing, or reclassifying certain Claims identified on Exhibits A through G attached hereto. The entry of said order will allow the Receiver to substantially complete the Receivership process and ultimately make distributions to the creditors of this case, pursuant to further order of the Court. The Receiver further seeks to limit notice of the order to those parties in interest who are registered to receive such notices through the ECF system and to those claimants who have filed claims pursuant to the claims procedure established heretofore. A summary of the various claims 1 The Receiver s Motion for Approval of the Sale of Billerica, MA is pending. 2

3 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 3 of 8 filed herein is attached hereto as Exhibit H. All claimants should carefully review each Exhibit hereto, since many claimants fall within more than one objection category. OBJECTION TO CLAIMS A. Reduction Claims 8. The Receiver has reviewed the Claims identified on Exhibit A (the Reduction Claims ), which assert, in the Receivers view, an incorrect claim amount. The Receiver seeks to fix Claims in the amounts reflected in the Judgment Debtors books and records and for the reasons set forth on Exhibit A. 9. For each Reduction Claim, Exhibit A reflects the amount asserted in the Claim in a column titled Asserted Amount, and the proposed dollar amount in a column title Proposed Allowed Amount The Receiver respectfully requests that this Court reduce and allow the Reduction Claims in the proposed allowed amounts appearing on Exhibit A, which amounts will be determined upon further discussions between the Receiver and the claimants as denoted and, if necessary, upon hearing before this Court. B. Duplicate Claims 11. The Receiver has reviewed the Claims identified on Exhibit B (the Duplicate Claims ) and he believes such Claims should be disallowed since these claimants have filed multiple claims for the same underlying debt. 12. For each Duplicate Claim, Exhibit B reflects the actual duplicate claim. If the Duplicate Claims are not disallowed as set forth in Exhibit B, the holders of the Duplicate Claims may receive an undeserved benefit to the detriment of the Judgment Debtors other 2 The reference to Proposed Allowed Amount may not correspond to the actual distribution determined by the Court. 3

4 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 4 of 8 creditors. Accordingly the Receiver respectfully requests that this Court disallow in full the Duplicate Claims. C. Offset Claims 13. Based upon the Receivers review of the Claims identified on Exhibit C (the Offset Claims ), the Receiver believes such claims should be reduced and/or disallowed since they appear to be subject to offset of valid, asserted claims held by the Receiver against the Offset Claims based on a review of the Judgment Debtors books and records. 14. For each Offset Claim, Exhibit C reflects the fact that the Receiver is asserting an offset. If the Offset Claims are not reduced or disallowed as set forth in Exhibit C, the holders of the Offset Claims may receive an undeserved benefit to the detriment of the Judgment Debtors other creditors. Accordingly, the Receiver respectfully requests that this Court reduce or disallow the Offset Claims, which amounts will be determined upon further discussion between the Receiver and the claimants denoted, and, if necessary, upon hearing before this Court. D. No Liability Claims 15. Based on the Receiver s review of these claims, the claims identified on Exhibit D (the No Liability Claims ) should be disallowed because they are claims for which the Judgment Debtors have no liability, based upon a review of the books and records of the Judgment Debtors. 16. If the No Liability Claims are not disallowed, the holders of the No Liability Claims may receive an undeserved benefit to the detriment of the Judgment Debtors other creditors. Accordingly, the Receiver respectfully requests that this Court disallow in full the No Liability Claims. 4

5 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 5 of 8 E. Insufficient Documentation Claims 17. The Claims identified on Exhibit E (the Insufficient Documentation Claims ) should be disallowed because the claims on Exhibit E do not include sufficient documentation for the Receiver to ascertain the validity thereof. 18. If the Insufficient Documentation Claims are not disallowed, the holders of the Insufficient Documentation Claims may receive an undeserved benefit to the detriment of the Judgment Debtors other creditors. Accordingly, the Receiver respectfully requests that this Court disallow in full the Insufficient Documentation Claims, or require such claimants to provide additional documentation adequate to ascertain the validity of such claims within the time period set forth in the order establishing a response date. F. Late Filed Claims 19. The Claims identified on Exhibit F (the Late Filed Claims ) should be disallowed because they were filed after the October 30, 2012 Bar Date established by the Bar Date Order and the further extension thereof to October 31, The Bar Date Order provides in relevant part: [A]ll holders of claims that fail to comply with this Order by timely filing a claim in appropriate form shall not be treated as a creditor with respect to such claim for the purpose of distribution. 21. All claimants, including those that submitted Late Filed Claims, were served the Notice for Deadline for Filing Claims on or about August 23, If the Late Filed Claims are not disallowed, the holders of the Late Filed Claims may receive an undeserved benefit to the detriment of the Judgment Debtors other creditors. 3 Due to Hurricane Sandy, the Receiver extended the Bar Date one (1) day, until 5:00 p.m., Eastern Standard Time on October 31,

6 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 6 of 8 Accordingly, the Receiver respectfully requests that this Court disallow in full the Late Filed Claims. G. Undifferentiated Claims 23. The claims identified on Exhibit G (the Undifferentiated Claims ) should be disallowed because all potential claimants herein were instructed, pursuant to the Motion and Bar Date Order, to identify the dates that their claims were incurred and the undifferentiated claims fail to do so. 24. If this honorable Court sets a different priority for distribution between pre- Receivership claims and post-receivership claims, the Undifferentiated Claims may receive an undeserved benefit to the detriment of the Judgment Debtors other creditors. Accordingly, the Receiver respectfully requests that this Court disallow in full the undifferentiated Claims, or require such claimants to amend their claims to provide adequate information as to whether amounts claimed are pre-receivership or post-receivership claims within the time period set forth in the order establishing a response date. RESERVATION OF RIGHTS 25. Without limiting the generality of the forgoing, the Receiver specifically reserves the right to amend this Motion, file additional papers in support of this Motion or take other appropriate actions, including to: (a) respond to any allegation or defense that may be raised in a response filed by or on behalf of any of the claimants or other interested parties; (b) object further to any Claim for which a claimant provides (or attempts to provide) additional documentation or substantiation; and (c) object further to any of the claims addressed herein based on additional information that may be discovered upon further review by the Receiver or discovery pursuant to the Federal Rules. 6

7 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 7 of No previous motion for the relief sought herein has been made to this or any other Court. WHEREFORE, the Receiver respectfully requests that the Court enter an order, substantially in the form attached hereto as Exhibit I, disallowing, reducing or reclassifying certain claims and granting such other relief as the Court deems necessary, just, and proper. Respectfully submitted Carl F. Jenkins, Receiver By his attorneys Date: February 18, 2013 /s/ Steven J. Marullo Steven J. Marullo BBO # Donald H. C. Libbey BBO # Donald H. C. Libbey, P. C. P.O. Box Needham, MA (781) (781) (facsimile) dhclibbey@lawboston.com sjmlaw@verizon.net 7

8 Case 1:02-cv RWZ Document 948 Filed 02/18/13 Page 8 of 8 CERTIFICATE OF SERVICE I hereby certify that I served the within document(s) through the ECF system, and that copies will be sent electronically to registered participants as identified on the Notice of Electronic Filing (NEF), and paper copies will be sent to those indicated as non-registered participants as of the date herein. /s/ Steven J. Marullo Steven J. Marullo Dated: February 19,