Case 16-32689 Document 752 Filed in TXSB on 07/20/18 Page 1 of 5 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. 16-32689 (DRJ) ) Debtors. ) (Jointly Administered) OBJECTION TO CLAIM NO. 65 FILED BY DELL FINANCIAL SERVICES L.L.C. PURSUANT TO RULE 3007 OF THE FEDERAL RULES OF BANKRUPTCY PROCEDURE 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 THESE BANKRUPTCY CASES. 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. THIS MATTER HAS BEEN SET FOR HEARING ON AUGUST 22, 2018 AT 2:00 P.M. (CENTRAL TIME) BEFORE THE HONORABLE DAVID R. JONES, CHIEF UNITED STATES BANKRUPTCY JUDGE, 515 RUSK AVENUE, 4TH FLOOR, COURTROOM 400, HOUSTON, TEXAS 77002. To the Honorable David R. Jones, United States Bankruptcy Judge: Alexandre Zyngier, as Trustee of the Linc Chapter 11 Creditor Trust (the Trustee ), hereby objects to Claim No. 65 filed by Dell Financial Services L.L.C. ( DFS or the Claimant ), 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). 6733865v1
Case 16-32689 Document 752 Filed in TXSB on 07/20/18 Page 2 of 5 pursuant to Rule 3007 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ), and in support thereof states as follows: JURISDICTION 1. This Court has jurisdiction over this Objection under 28 U.S.C. 1334. This is a core proceeding within the meaning of 28 U.S.C. 157(b)(2)(B). Venue is proper pursuant to 28 U.S.C. 1408. 2. The statutory predicates for the relief requested herein are Section 502 of the Bankruptcy Code and Bankruptcy Rules 3001, 3003(c) and 3007. LEGAL AUTHORITY 3. Claim objections are governed by Section 502 of the Bankruptcy Code and by Rule 3007 of the Bankruptcy Rules. Inasmuch as the Debtors are not requesting relief of the kind specified in Bankruptcy Rule 7001, this objection is a contested matter under Bankruptcy Rule 9014. FACTUAL BACKGROUND 4. On May 29, 2016, the Debtors filed their voluntary chapter 11 cases. 5. On June 22, 2016, DFS filed its proof of claim (Claim No. 65) against Linc Energy Operations, Inc. ( Linc Energy Operations ) asserting a secured claim (the Claim ) in the amount of $85,331.83 based on a loan allegedly made by DFS (the Loan ) to Linc Energy Operations to buy goods from DFS. However, DFS s proof of claim does not include any agreements or other documentation supporting its claim that DFS is a creditor of Linc Energy Operations. The invoice attached to DFS s proof of claim designates Dell Business Credit ( DBC ) as the entity payment should be remitted. The UCC Financing Statement attached to DFS s proof of claim identifies an 6733865v1 2
Case 16-32689 Document 752 Filed in TXSB on 07/20/18 Page 3 of 5 unknown third-party named Webbank ( Webbank ) as the secured party and owner of the Loan. See Exhibit A. 6. DFS s proof of claim does not include any agreements or other documentation between Webbank and DFS or any suggestion that Webbank assigned its interest in the Loan to DFS. Id. 7. On August 12, 2016, the Debtors filed their Second Redlined Amended Schedules of Assets and Liabilities for Linc Energy Operations, Inc. [Dkt. No. 289]. The Schedules do not identify DFS or Webbank as creditors but identify DBC as an unsecured creditor for $10,727.21. OBJECTION 8. The Trustee objects to the Claim on the basis that (i) the Debtors do not owe any obligation to DFS on its alleged claim, (ii) the documentation attached to DFS s proof of claim is insufficient to support the alleged claim, and (iii) the documentation attached to DFS s proof of claim fails to satisfy the requirements of Rule 3001 of the Federal Rules of Bankruptcy Procedure and therefore the claim does not enjoy the presumption of validity. 9. Pursuant to Bankruptcy Code 101(5), a creditor holds a claim against a debtor s estate only to the extent that it has a right to payment for the asserted liability. See 11 U.S.C. 101(5). Likewise, Section 502(b)(1) of the Bankruptcy Code provides, in relevant part, that the Court shall allow a claim except to the extent that such claim is unenforceable against the debtor and property of the debtor, under any agreement or applicable law 11 U.S.C. 502(b)(1). DFS failed to provide documentation showing that the Loan was assigned from Webbank to DFS. Moreover, the documentation supplied by DFS provides contradictory and convoluted information relating to the ownership of the Loan. 6733865v1 3
Case 16-32689 Document 752 Filed in TXSB on 07/20/18 Page 4 of 5 10. Given DFS s failure to attach supporting documentation or to provide any explanation as to why such documents could not be produced, and given DFS s failure to provide proof establishing any underlying assignments, DFS has not satisfied Rule 3001 and their proof of claim is not prima facie valid. See In re Gilbreath, 395 B.R. 356 (Bankr. S.D. Tex. 2008), as amended (Nov. 19, 2008). 11. DFS has failed to provide documentation evidencing any obligations owed by the Debtors to DFS. Accordingly, Debtors have no liability on the Claim. CONCLUSION WHEREFORE, the Trustee respectfully requests that the Court enter an order sustaining this Objection and granting such other and further relief as the Court deems appropriate. Dated: July 20, 2018 Respectfully submitted, /s/ Eric M. English Eric M. English State Bar No. 24062714 Jonna N. Summers State Bar No. 24060649 Samuel A. Spiers State Bar No. 24106457 Porter Hedges LLP 1000 Main Street, 36th Floor Houston, Texas 77002 Telephone: (713) 226-6000 Fax: (713) 226-6248 ATTORNEYS FOR ALEXANDRE ZYNGIER, AS TRUSTEE OF THE LINC CHAPTER 11 CREDITOR TRUST 6733865v1 4
Case 16-32689 Document 752 Filed in TXSB on 07/20/18 Page 5 of 5 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing document was forwarded by electronic transmission to all registered ECF users appearing in the case and by U.S. first class mail to the parties listed below on July 20, 2018. U.S. Trustee United States Trustee 515 Rusk Ave., Suite 3516 Houston, TX 77002 Claimants Dell Financial Services L.L.C. Attn: Charles Simpson (Charles_Simpson@Dell.com) 2300 Greenlawn Blvd., MS RR3-52 Round Rock, TX 78682 /s/ Eric M. English Eric M. English _ 6733865v1 5
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Case 16-32689 Document 752-3 Filed in TXSB on 07/20/18 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. 16-32689 (DRJ) ) Debtors. ) (Jointly Administered) ORDER SUSTAINING OBJECTION TO CLAIM NO. 65 FILED BY DELL FINANCIAL SERVICES L.L.C. (Relates to Doc. No. ) Upon consideration of Objection to Claim No. 65 (the Objection ), the Court concludes that the Claimant failed to sufficiently demonstrate that the Debtors are obligated on the Claim. It is therefore ORDERED that Claim No. 65, filed by Dell Financial Services L.L.C. shall be DISALLOWED in its entirety and expunged. Dated:, 2018 Houston, Texas 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). 6735722v1