Case Document 597 Filed in TXSB on 06/02/17 Page 1 of 6

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1 Case Document 597 Filed in TXSB on 06/02/17 Page 1 of 6 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION In re: ) Chapter 11 ) LINC USA GP, et al. 1 ) Case No (DRJ) ) Debtors. ) (Jointly Administered) CHAPTER 11 CREDITOR TRUSTEE S OBJECTION TO CLAIM FILED BY THE ESTATE OF CHARLES ELWOOD DAVIS PURSUANT TO RULE 3007 OF THE FEDERAL RULES OF BANKRUPTCY PROCEDURE (Relates to Claim No. 122) THIS IS AN OBJECTION TO YOUR CLAIM. THE OBJECTING PARTY IS ASKING THE COURT TO DISALLOW ALL OR A PORTION OF THE CLAIM THAT YOU FILED IN THIS BANKRUPTCY CASE. YOU SHOULD IMMEDIATELY CONTACT THE OBJECTING PARTY TO RESOLVE THE DISPUTE. IF YOU DO NOT REACH AN AGREEMENT, YOU MUST FILE A RESPONSE TO THIS OBJECTION AND SEND A COPY OF YOUR RESPONSE TO THE OBJECTING PARTY WITHIN 30 DAYS AFTER THE OBJECTION WAS SERVED ON YOU. YOUR RESPONSE MUST STATE WHY THE OBJECTION IS NOT VALID. IF YOU DO NOT FILE A RESPONSE WITHIN 30 DAYS AFTER THE OBJECTION WAS SERVED ON YOU, YOUR CLAIM MAY BE DISALLOWED WITHOUT A HEARING. To the Honorable David R. Jones, Chief United States Bankruptcy Judge: Alexandre Zyngier, as the Trustee (the Trustee ) of the Linc Chapter 11 Creditor Trust (the Trust ), files this objection (the Objection ) to the Claim filed by the estate of Charles Elwood Davis (the Claimant or Davis ) [Claim No. 122], pursuant to Rule 3007 of the Federal Rules of Bankruptcy Procedure, and in support thereof, respectfully states as follows: 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtors federal tax identification number, are: Linc Energy Finance (USA), Inc. (6684); Linc USA GP (5234); Linc Energy Resources, Inc. (9613); Linc Gulf Coast Petroleum, Inc. (6790); Linc Energy Petroleum (Louisiana), LLC (1074); Linc Alaska Resources, LLC (2362); Paen Insula Holdings, LLC (1681); Linc Energy Petroleum (Wyoming), Inc. (9859); and Linc Energy Operations, Inc. (5806). 1

2 Case Document 597 Filed in TXSB on 06/02/17 Page 2 of 6 JURISDICTION 1. This Court has jurisdiction over this matter pursuant to 28 U.S.C This Objection is a core proceeding within the meaning of 28 U.S.C. 157(b)(2). Venue is proper pursuant to 28 U.S.C Pursuant to the Debtors Joint Plan of Liquidation (the Plan ) [Doc. No. 450], this Court retains jurisdiction over objections to claims. LEGAL AUTHORITY 2. Claim objections are governed by Section 502 of the Bankruptcy Code and by Rule 3007 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ). Inasmuch as the Trustee is not requesting relief of the kind specified in Bankruptcy Rule 7001, this Objection is a contested matter under Bankruptcy Rule FACTUAL BACKGROUND 3. On May 29, 2016 (the Petition Date ), the Debtors filed voluntary petitions for relief under chapter 11, title 11 of the United States Code (the Bankruptcy Code ) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the Court ). 4. On February 13, 2017, the Court entered the order (the Confirmation Order ) [Doc. No. 536], which confirmed the Debtors Joint Plan of Liquidation the (the Plan ). [Doc. No. 450]. Pursuant to the Plan and Confirmation Order, the Trustee was vested with the authority to, among other things, review and object to claims. 5. According to the Notice of Effective Date [Doc. No. 572], all holders of administrative claims, including substantial contribution claims, had to submit proofs of administrative claim on or before May 3, 2017 (the Administrative Claims Bar Date ). The Trustee had thirty (30) days (or such longer period as may be allowed by order of the Bankruptcy Court) following the Administrative Claims Bar Date to review and object to such administrative v1 2

3 Case Document 597 Filed in TXSB on 06/02/17 Page 3 of 6 claims before a hearing for determination of allowance of such administrative claims. [Doc. No. 572]. 6. On October 13, 2016, the Claimant filed a proof of claim (the Claim ), which is attached hereto as Exhibit A, for an unspecified amount. [Claim No. 122]. The stated basis of the claim is also unknown. See Exhibit A. 2 Attached to the Claim is a letter addressed to the Court s Clerk, which explains that Claimant inherited an interest in an oil and gas lease from his deceased father, Mr. Charles Elwood Davis. Id. The Claim has been designated as an unsecured claim. Id. OBJECTION 7. Under 503(b)(1)(A) of the Bankruptcy Code, the Court is required to award administrative priority for claims that constitute the actual, necessary costs and expenses of preserving the estate U.S.C. 503(b)(1)(A). To establish that the claim is both actual and necessary, the claimant must demonstrate that the charge is reasonable for the value or benefit bestowed upon the estate. In re Express One Int l, Inc., 217 B.R. 207, 211 (Bankr. E.D. Tex. 1998); see also In re Canton Jubilee, Inc., 253 B.R. 770, 775 (Bankr. E.D. Tex. 2000) (same). 8. The Trustee objects to the Claim for lack of supporting documentation. Pursuant to Bankruptcy Rule 3001(f), the Claim does not present prima facie evidence as to its validity or amount. See ecast Settlement Corp. v. Tran (In re Tran), 369 B.R. 312, 318 (Bankr. S.D. Tex. 2007) ( [B]ecause ecast s claim had no presumption of validity, [the debtor] had no evidentiary burden to overcome in objecting to ecast s claim.... Therefore, under Fifth Circuit law, the burden rightfully shifted to ecast to prove the validity of its claim. ) (citation omitted); see also 2 The Claimant placed a? on nearly every line item of the Proof of Claim form, including line items designated for the Claim Amount and basis of the claim. See Exhibit A v1 3

4 Case Document 597 Filed in TXSB on 06/02/17 Page 4 of 6 In re DePugh, 409 B.R. 84, 97 n.9 (Bankr. S.D. Tex. 2009) (Tran is binding authority on bankruptcy courts in the Southern District of Texas). Based on the information provided, the Trustee is unable to determine the validity of the Claim Amount (which is an undetermined amount) or to verify the basis of the Claim (which is also unknown). 9. Therefore, the Claim should be disallowed as moot 3 or, in the alternative, for Claimant s failure to provide supporting documentation to establish a prima facie claim. RESERVATION OF RIGHTS 10. The Trustee reserves all rights related to Claimant s Claim. Such rights include, without limitation, the right to amend or supplement this Objection or raise any additional objections and/or arguments, prior to or during any hearing(s) regarding Claimant s Claim, or any hearing regarding payment of administrative expense claims. All such rights are expressly reserved and preserved. CONCLUSION WHEREFORE, the Trustee respectfully requests that this Court grant the Trustee s Objection as set forth above, and grant other relief to which the Trustee may be justly entitled. [Remainder of Page Left Intentionally Blank] 3 On June 1, 2016, the Court entered a Final Order Authorizing the Debtors to Pay or Honor Prepetition and Postpetition Royalty Obligations, Working Interest Obligations and Other Obligations Related to Oil and Gas Leases (the Order ), which addresses the Debtors obligation to pay royalty obligations. [Doc. No. 29] v1 4

5 Case Document 597 Filed in TXSB on 06/02/17 Page 5 of 6 Dated: June 2, 2017 Porter Hedges LLP /s/ Eric M. English Eric M. English State Bar No Rachel I. Thompson State Bar No Porter Hedges LLP 1000 Main Street, 36 th Floor Houston, Texas Telephone: (713) Facsimile: (713) ATTORNEYS FOR ALEXANDRE ZYNGIER, THE TRUSTEE OF THE LINC CHAPTER 11 CREDITOR TRUST v1 5

6 Case Document 597 Filed in TXSB on 06/02/17 Page 6 of 6 CERTIFICATE OF SERVICE I certify that on June 2, 2017, I caused a copy of the foregoing Objection to be served by first class mail to Charles Elwood Davis, 515 Park St., Loogootee, IN, The Objection was also served by the Electronic Case Filing System for the United States Bankruptcy Court for the Southern District of Texas to all parties appearing in these cases. /s/ Rachel I. Thompson Rachel I. Thompson v1 6

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11 Case Document Filed in TXSB on 06/02/17 Page 1 of 1 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION In re: ) Chapter 11 ) LINC USA GP, et al. 1 ) Case No (DRJ) ) Debtors. ) (Jointly Administered) DECLARATION OF ALEXANDRE ZYNGIER I, Alexandre Zyngier, hereby declare under penalty of perjury: 1. My name is Alexandre Zyngier. I am the Trustee of the Linc Chapter 11 Creditor Trust in Case No , In re Linc USA GP, et al. 2. On or about June 2, 2017, I authorized the filing of an objection to Claim filed by the estate of Charles Elwood Davis ( Claimant or Davis ). [Claim No. 122]. 3. I read the objection prior to its filing. To the best of my knowledge, the statements contained therein are true and correct. 4. Accordingly, I request that Davis Claim [Claim No. 122] be disallowed in its entirety. 5. Pursuant to 28 U.S.C. 1746, I declare under penalty of perjury that the facts set forth in the foregoing declaration are true and correct to the best of my knowledge information and belief. Dated: June 2, 2017 /s/ Alexandre Zyngier Alexandre Zyngier, Trustee of the Linc Chapter 11 Creditor Trust 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtors federal tax identification number, are: Linc Energy Finance (USA), Inc. (6684); Linc USA GP (5234); Linc Energy Resources, Inc. (9613); Linc Gulf Coast Petroleum, Inc. (6790); Linc Energy Petroleum (Louisiana), LLC (1074); Linc Alaska Resources, LLC (2362); Paen Insula Holdings, LLC (1681); Linc Energy Petroleum (Wyoming), Inc. (9859); and Linc Energy Operations, Inc. (5806). 1

12 Case Document Filed in TXSB on 06/02/17 Page 1 of 1 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION In re: ) Chapter 11 ) LINC USA GP, et al. 1 ) Case No (DRJ) ) Debtors. ) (Jointly Administered) ORDER GRANTING CHAPTER 11 CREDITOR TRUSTEE S OBJECTION TO CLAIM FILED BY THE ESTATE OF CHARLES ELWOOD DAVIS (Relates to Claim No. 122) Upon consideration of the Chapter 11 Creditor Trustee s Objection to Claim filed by the estate of Charles Elwood Davis (the Objection ), the Court concludes that notice of the Objection was sufficient and proper and that good cause exists to sustain the Objection. It is therefore ORDERED that the Claim filed by the estate of Charles Elwood Davis [Claim No. 122] is hereby DISALLOWED in its entirety. SIGNED this day of, THE HONORABLE DAVID R. JONES, CHIEF UNITED STATES BANKRUPTCY JUDGE 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtors federal tax identification number, are: Linc Energy Finance (USA), Inc. (6684); Linc USA GP (5234); Linc Energy Resources, Inc. (9613); Linc Gulf Coast Petroleum, Inc. (6790); Linc Energy Petroleum (Louisiana), LLC (1074); Linc Alaska Resources, LLC (2362); Paen Insula Holdings, LLC (1681); Linc Energy Petroleum (Wyoming), Inc. (9859); and Linc Energy Operations, Inc. (5806). 1