shl Doc 757 Filed 03/26/19 Entered 03/26/19 13:18:35 Main Document Pg 1 of 8

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1 Pg 1 of 8 JENNER & BLOCK LLP Marc Hankin Carl Wedoff 919 Third Avenue New York, New York (212) Angela Allen (admitted pro hac vice) 353 North Clark Street Chicago, Illinois (312) Counsel for the Chapter 11 Trustee UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK Hearing Date and Time: April 25, 2019 at 10:00 a.m. EDT Objection Deadline: April 18, 2019 In re: FIRESTAR DIAMOND, INC., et al. Chapter 11 No (SHL) (Jointly Administered) Debtors. 1 NOTICE OF TRUSTEE S OBJECTION TO SCHEDULED CLAIM OF FIPL MAJORS Richard Levin, not individually but as Chapter 11 Trustee (the Trustee ) for the bankruptcy estates of the Debtors in the above-captioned bankruptcy cases, has filed his Objection to the Scheduled Claim of Fipl Majors (the Objection ), which seeks entry of an order (the Proposed Order ), substantially in the form attached as Exhibit A to the Objection, disallowing a scheduled claim of Fipl Majors. Any response to the Objection must be filed with the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court ) not later than April 18, 2019, and served so as to be received by counsel for the Trustee at the following address: Carl Wedoff, Jenner & Block LLP, 919 Third Avenue, New York, New York Every response to the Objection should contain the following: a. the name of the claimant and description of the basis for the amount of the Claim; 1 The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: Firestar Diamond, Inc. (2729), Fantasy, Inc. (1673), and Old AJ, Inc. f/k/a A. Jaffe, Inc. (4756).

2 Pg 2 of 8 b. a concise statement setting forth the reasons why the Claim should not be disallowed as requested by the Trustee in the Objection, including, but not limited to, the specific factual and legal bases upon which the claimant will rely in opposing the Objection; c. all documentation or other evidence of the Claim upon which the claimant will rely in opposing the Objection; d. the address(es) to which the Trustee must return any reply to the claimant s response, if different from the address(es) presented in the Claim; and e. The name, address, and telephone number of the person (which may be the claimant or the claimant s legal representative) possessing the ultimate authority to reconcile, settle, or otherwise resolve the Claim on behalf of the claimant. A hearing on the Objection will be held on April 25, 2019 at 10:00 a.m. EDT before the Honorable Sean H. Lane, United States Bankruptcy Judge, in the United States Bankruptcy Court for the Southern District of New York, One Bowling Green, Courtroom 701, New York, NY 10004, or before any other judge who may be sitting in his place and stead. Notwithstanding anything in the Court s Order Establishing Deadline for Filing Proofs of Claim and Approving the Form and Manner of Notice Thereof, dated October 5, 2018 [Dkt. 482] stating claimants with certain undisputed scheduled claims need not file a proof of claim, THE COURT MAY GRANT THE RELIEF DEMANDED BY THE OBJECTION WITHOUT FURTHER NOTICE OR HEARING IF YOU FAIL TO RESPOND TO THE OBJECTION IN ACCORDANCE WITH THIS NOTICE. (Signature page follows.) 2

3 Pg 3 of 8 Dated: March 26, 2019 New York, New York Respectfully submitted, JENNER & BLOCK LLP By: /s/ Marc Hankin Marc Hankin Carl Wedoff 919 Third Avenue New York, New York (212) mhankin@jenner.com cwedoff@jenner.com Angela Allen (admitted pro hac vice) 353 N. Clark St. Chicago, Illinois (312) aallen@jenner.com Counsel for the Chapter 11 Trustee 3

4 Pg 4 of 8 Hearing Date and Time: April 25, 2019 at 10:00 a.m. EDT Objection Deadline: April 18, 2019 JENNER & BLOCK LLP Marc Hankin Carl Wedoff 919 Third Avenue New York, New York (212) Angela Allen (admitted pro hac vice) 353 North Clark Street Chicago, Illinois (312) Counsel for the Chapter 11 Trustee UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: FIRESTAR DIAMOND, INC., et al. Chapter 11 No (SHL) (Jointly Administered) Debtors. 2 TRUSTEE S OBJECTION TO SCHEDULED CLAIM OF FIPL MAJORS Richard Levin, Chapter 11 Trustee (the Trustee ) of the Debtors in these chapter 11 cases (the Debtors ), files this Objection under sections 105(a) and 502(b) of the Bankruptcy Code, 11 U.S.C , and Rule 3007 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ), requesting that the scheduled claim of Fipl Majors (the Claimant ) be disallowed in its entirety. In support of this Objection, the Trustee states: 2 The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: Firestar Diamond, Inc. (2729), Fantasy, Inc. (1673), and Old AJ, Inc. f/k/a A. Jaffe, Inc. (4756).

5 Pg 5 of 8 JURISDICTION AND VENUE 1. This Court has jurisdiction over the Objection under 28 U.S.C This is a core proceeding under 28 U.S.C. 157(b). The Trustee consents to the entry of a final order by this Court. 2. Venue is proper in this district under 28 U.S.C and This Objection is made under sections 105(a) and 502(b) of the Bankruptcy Code, 11 U.S.C , and Rules 3007 and 9014 of the Bankruptcy Rules. BACKGROUND 4. On February 26, 2018, the Debtors filed petitions under chapter 11 in this Court. On March 9, 2018, this Court entered an Order directing that the Debtors cases be jointly administered. [Dkt. 24.] 5. On June 14, 2018, the United States Trustee for Region 2 appointed Richard Levin as the trustee in the Debtors jointly administered cases. [Dkt. 222.] 6. On March 27, 2018, the Debtors filed their Schedules of Assets and Liabilities [Dkts. 69, 71, 73], and on March 15, 2019, the Trustee filed Amended Schedules E-F for all Debtors [Dkt. 740] (collectively, the Schedules ). 7. On October 5, 2018, the Court entered an order fixing December 11, 2018 as the deadline for the filing of proofs of claim by creditors. [Dkt. 482.] 8. On March 5, 2019, the Court entered an order granting the Trustee s First Omnibus Objection to Claims, which disallowed duplicate claims. [Dkt. 725.] 9. As of March 25, 2019, 97 proofs of claim have been filed against the Debtors. In addition, the Schedules identity 334 unsecured claims. 10. The Debtors scheduled the following general unsecured claim (the Unsupported Claim ) of the Claimant: 2

6 Pg 6 of 8 Name and Address Debtor Dkt. No. Sched. Claim No. Claim Amount Fipl Majors Plot No 26, Sursez Saching Surat , Gujrat India Old AJ, Inc. f/k/a A. Jaffe, Inc. ( ) $199, In the ordinary course of business, the Debtors maintained records (the Books and Records ) that reflect, among other things, the Debtors liabilities and the amounts owed to their creditors. 12. The Trustee has taken possession and control of the Books and Records. 13. The Trustee and his professionals have reviewed the Books and Records and the Schedules. After due diligence and research, the Trustee has concluded that the Books and Records do not reflect the Unsupported Claim as owing to the Claimant. RELIEF REQUESTED 14. By this objection, the Trustee respectfully requests that the Court enter an order, substantially in the form attached hereto as Exhibit A (the Proposed Order ), disallowing the Unsupported Claim in its entirety. 15. In support of this Objection, the Trustee submits the declaration of Richard Levin (the Levin Declaration ) filed contemporaneously herewith. BASIS FOR RELIEF 16. Section 1111(a) of the Bankruptcy Code provides, A proof of claim or interest is deemed filed under section 501 of this title for any claim or interest that appears in the schedules filed under section 521(a)(1) or 1106(a)(2) of this title, except a claim or interest that is scheduled as disputed, contingent, or unliquidated. Accordingly, a proof of claim is deemed filed for the Unsupported Claim. 3

7 Pg 7 of Section 502(a) of the Bankruptcy Code provides that [a] claim or interest, proof of which is filed under section 501 of this title, is deemed allowed, unless a party in interest... objects. 11 U.S.C. 502(a). If a party in interest objects, the Court, after notice and a hearing, determines the extent of the claim. See 11 U.S.C. 502(b). Claims objections have a shifting burden of proof. Correctly filed proofs of claim constitute prima facie evidence of the validity and amount of the claim. To overcome this prima facie evidence, an objecting party must come forth with evidence which, if believed, would refute at least one of the allegations essential to the claim. The objecting party is thereafter required to produce evidence equal in force to that provided by the claimant to rebut the presumption of the claimant's prima facie case. Once this is done, the burden then shifts back to the claimant to produce additional evidence to prove the validity of the claim by a preponderance of the evidence. In re Residential Capital, LLC, No (MG), 2014 WL , at *4 (Bankr. S.D.N.Y. Mar. 17, 2014) (internal citations and quotation marks omitted). 18. As set forth in the Levin Declaration, the Trustee and his professionals have reviewed the Books and Records and concluded that they do not contain any evidence of liability to the Claimant for the Unsupported Claim. Claimant did not file a proof of claim in these chapter 11 cases or adduce evidence to show the Unsupported Claim is a valid obligation of the Debtors, and thus, the Levin Declaration rebuts the prima facie validity of the deemed proof of claim of the Unsupported Claim. Accordingly, the Trustee requests the Court disallow the Unsupported Claim in its entirety. RESERVATION OF RIGHTS 19. Nothing in this Objection should be construed as the Trustee conceding the validity of any claim. The Trustee s claims analysis continues, and this Objection is one of many the Trustee anticipates filing. Therefore, the Trustee expressly reserves the right to object to any 4

8 Pg 8 of 8 or all of the claims filed or deemed filed against the Debtors estates, including other claims brought by the Claimant, on any proper basis whatsoever. NOTICE 20. The Trustee has provided notice of this Motion to: (a) the Office of the United States Trustee; (b) all parties who have formally requested notice in the Debtors cases; and (c) the Claimant. WHEREFORE, the Trustee respectfully requests that this Court enter an Order substantially in the form of the attached proposed order and grant such other and further relief as this Court deems just and proper. Dated: March 26, 2019, New York, New York Respectfully submitted, JENNER & BLOCK LLP By: /s/ Marc Hankin Marc Hankin Carl Wedoff 919 Third Avenue New York, NY (212) mhankin@jenner.com cwedoff@jenner.com Angela Allen (admitted pro hac vice) 353 N. Clark St. Chicago, Illinois (312) aallen@jenner.com Counsel for the Chapter 11 Trustee 5

9 shl Doc Filed 03/26/19 Entered 03/26/19 13:18:35 Exhibit A - Proposed Order Pg 1 of 3 Exhibit A Proposed Order

10 shl Doc Filed 03/26/19 Entered 03/26/19 13:18:35 Exhibit A - Proposed Order Pg 2 of 3 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK In re: FIRESTAR DIAMOND, INC., et al. Debtors. 3 Chapter 11 No (SHL) (Jointly Administered) [PROPOSED] ORDER GRANTING OBJECTION TO SCHEDULED CLAIM OF FIPL MAJORS Upon consideration of the Objection to Scheduled Claim of Fipl Majors (the Objection ) filed by Richard Levin in his capacity as Trustee of the three Debtors in these jointly administered cases (the Trustee ), seeking entry of an order under section 502(b) of title 11 of the United States Code (the Bankruptcy Code ), and Rule 3007 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ), disallowing the Unsupported Claim, as more fully described in the Objection; and appropriate notice under the circumstances of the Objection having been provided, and it appearing that no other or further notice need be provided; and the Court having found and determined that the relief sought in the Objection that is granted hereby is in the best interests of the Debtors estates, creditors, and all parties in interest, and that the legal and factual bases set forth in the Objection establish just cause for the relief granted herein; and after due deliberation and sufficient cause appearing therefor, it is ORDERED that the Objection is granted; and it is further ORDERED that, under section 502(b) of the Bankruptcy Code and Bankruptcy Rule 3007, the Unsupported Claim identified in the Objection is disallowed in its entirety, with prejudice; and it is further 3 The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: Firestar Diamond, Inc. (2729), Fantasy, Inc. (1673), and Old AJ, Inc. f/k/a A. Jaffe, Inc. (4756).

11 shl Doc Filed 03/26/19 Entered 03/26/19 13:18:35 Exhibit A - Proposed Order Pg 3 of 3 ORDERED that the Debtors, the Debtors Claims and Noticing Agent (Omni Management Group), and the Clerk of this Court are authorized to take all actions necessary or appropriate to effectuate this Order; and it is further ORDERED that this Court shall retain jurisdiction to hear and determine all matters arising from or related to the implementation and/or interpretation of this Order. Dated: New York, New York, 2019 HONORABLE SEAN H. LANE UNITED STATES BANKRUPTCY JUDGE 2