Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 1 of 9 Raymond J. Urbanik Texas Bar No. 20414050 OKIN ADAMS LLP 3811 Turtle Creek Boulevard, Suite 780 Dallas, Texas 75219 Tel: 214.382.4995 E-mail: rurbanik@okinadams.com Matthew S. Okin Texas Bar No. 00784695 OKIN ADAMS LLP 1113 Vine Street, Suite 201 Houston, Texas 77002 Tel: 713.228.4100 E-mail: mokin@okinadams.com COUNSEL FOR ROBERT E. OGLE, LITIGATION TRUSTEE FOR THE ERICKSON LITIGATION TRUSTEE IN THE UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION In re: ERICKSON INCORPORATED, et al., 1 Reorganized Debtors. Chapter 11 Bankruptcy Case No. 16-34393-HDH (Jointly Administered) LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS THE PROOF(S) OF CLAIM(S) SCHEDULED BY THE DEBTORS OR THAT YOU FILED AGAINST ONE OR MORE OF THE ABOVE-NAMED JOINTLY ADMINISTERED DEBTORS IS SUBJECT TO AN OBJECTION. YOUR CLAIM IS IDENTIFIED IN EXHIBIT "A." PLEASE CHECK THE EXHIBIT FOR YOUR NAME. 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor's federal tax identification number, include: Erickson Incorporated (7561); EAC Acquisition Corporation (3733); Erickson Helicopters, Inc. (5052); Erickson Transport, Inc. (9162); Evergreen Helicopters International, Inc. (1311); Evergreen Equity Inc. (9209); and Evergreen Unmanned Systems, Inc. (3961). The location of the Debtors' service address is 5550 SW Macadam Avenue, Suite 200, Portland, OR 97239. LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 1
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 2 of 9 COPIES OF YOUR CLAIM MAY BE OBTAINED (I) (I) FROM THE CASE WBSITE WEBSITE AT AT WWW.KCC.NET/ERICKSON WWW.KCCLLC.NET/ERICKSON OR (II) OR UPON (II) UPON REQUEST REQUEST TO THE TO THE UNDERSIGNED. UNDERSIGNED. A HEARING ON THIS MATTER WILL BE CONDUCTED ON MARCH 21, 2018, AT 1:30 P.M. CENTRAL TIME BEFORE THE HONORABLE HARLIN D. HALE, UNITED STATES BANKRUPTCY COURT, 1100 COMMERCE STREET, 14TH FLOOR (COURTROOM #3), DALLAS, TEXAS TO THE HONORABLE HARLIN D. HALE, U.S. BANKRUPTCY JUDGE: Robert E. Ogle, Litigation Trustee for the Erickson Litigation Trust (the "Trustee"), files this Litigation Trustee's First Omnibus Objection to General Unsecured Claims (the "Objection"), and respectfully represents: Jurisdiction and Venue 1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. 157 and 1334. This matter is a core proceeding within the meaning of 28 U.S.C. 157(b). Venue is proper in this District pursuant to 28 U.S.C. 1408 and 1409. Background 2. On November 8, 2016, each of the Debtors commenced cases (the "Chapter 11 Cases") under chapter 11 of the Bankruptcy Code. On March 22, 2017, the Court entered the Order Confirming the Second Amended Joint Plan of Reorganization of Erickson Incorporated, et al. Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 581] confirming the Second Amended Joint Plan of Reorganization of Erickson Incorporated, et al., Pursuant to Chapter 11 of the Bankruptcy Code (the "Plan") 2 [Docket No. 381] dated February 3, 2017. The Effective Date of the Plan occurred on April 28, 2017. 2 Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Plan. LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 2
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 3 of 9 3. Pursuant to the Confirmation Order, Robert E. Ogle serves as Trustee of the Erickson Litigation Trust. Pursuant to Article VII.D of the Plan, any objections to claims shall be filed on or before the later of (1) 180 days after the Effective Date (the "Objection Deadline") and (2) such other period of limitation as may be specifically fixed by the Court. 4. Pursuant to a Motion filed on October 12, 2017, the Trustee requested an extension to January 23, 2018, for objecting to Proofs of Claim. The Motion was approved at a hearing on October 23, 2017, and the Order extending the claims objection deadline was entered on October 24, 2017 [Docket No. 705]. Relief Requested 5. By this Objection, the Trustee seeks entry of an order disallowing and expunging the claims, both scheduled and filed claims, listed on Exhibit A (collectively, the "Unsecured Claims"). The Trustee has examined the Unsecured Claims and the grounds for the Trustee's Objection to these claims is indicated on Exhibit A. A proposed form of order approving the relief requested in this Objection is attached hereto as Exhibit B (the "Order"). Basis for Relief Requested 6. Section 502(a) of the Bankruptcy Code governs objections to claims and 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 such objection to a claim is made, the court, after notice and hearing, shall determine the amount of such claim in lawful currency of the United States as of the date of the filing of the petition, and shall allow such claim in such amount." Id. 502(b). 7. Bankruptcy Rule 3007 addresses the objections to claims. Fed. R. Bankr. P. 3007. The burden of proof is on the objecting party to produce sufficient evidence to overcome the prima facie effect of the claim. See In re O'Conner, 153 F.3d 258, 260 (5th Cir. 1998). If the objecting LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 3
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 4 of 9 party succeeds, the burden shifts to the party asserting the claim, who must then establish the validity of the claim by a preponderance of the evidence. Id. The ultimate burden of proof lies with the party who would bear the burden if the dispute arose outside of the bankruptcy context. See In re Armstrong, 320 B.R. 97 (Bankr. N.D. Tex. 2005). 8. The Trustee and his professionals have reviewed the proofs of claims filed in the Chapter 11 Cases. During this review, the Trustee has identified claims to which the Trustee objects. In this Objection, pursuant to section 502 of the Bankruptcy Code and Federal Rule of Bankruptcy Procedure 3007(d), the Trustee objects to certain Unsecured Claims that are duplicative, disputed, unliquidated, have litigation which is ongoing, or where the classification of the claim is incorrect. Reservation of Rights 9. The relief requested in this Objection is without prejudice to, nor does it constitute any waiver of, any claims or causes of action or defense to any claim belonging to (or that could be asserted by) the Trustee, the Reorganized Debtors, their bankruptcy estates, or any successors in interest under the Plan. The Trustee reserves the right to amend, supplement, or otherwise modify the Objection and to file additional objections, both technical and substantive, to the Unsecured Claims. 10. The Trustee respectfully requests entry of the Order granting the relief requested herein and such other and further relief as is just and proper. LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 4
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 5 of 9 RESPECTFULLY SUBMITTED this 23 rd day of January, 2018. OKIN ADAMS LLP By: /s/ Raymond J. Urbanik Raymond J. Urbanik Texas Bar No. 20414050 3811 Turtle Creek Boulevard, Suite 780 Dallas, Texas 75219 Tel: 214.382.4995 E-mail: rurbanik@okinadams.com Matthew S. Okin Texas Bar No. 00784695 1113 Vine Street, Suite 201 Houston, Texas 77002 Tel: 713.228.4100 E-mail: mokin@okinadams.com COUNSEL FOR ROBERT E. OGLE, LITIGATION TRUSTEE FOR THE ERICKSON LITIGATION TRUST LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 5
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 6 of 9 EXHIBIT A UNSECURED CLAIMS Claim No. Claimant Claim Amount Date Filed Reason for Objection Insufficient 239 Bell Helicopter / Textron, Inc. $4,040,547.95 01/25/17 Documentation 205 Aviall Services, Inc. $221,876.01 01/17/17 Duplicative Claim 379 Cartridge Actuated Devices, Inc. $43,534.00 03/14/17 Duplicative Claim 31 W.W. Grainger $11,633.99 12/05/16 Duplicative Claim 43 W.W. Grainger $11,633.99 12/05/16 Duplicative Claim 157 Llamas Plastics, Inc. $52,780.00 12/30/16 Insufficient Documentation 177 MT Texas LLC $66,147.00 01/06/17 Insufficient Documentation 147 Argonaut Insurance Company $133,875.00 12/27/16 Insufficient Documentation 427 World Fuel Services, Inc. $14,546,621.92 03/20/17 Disputed - Claim Subject to Litigation 426 Variant Aircraft Resolved by Stipulation $1,788,488.00 03/20/17 Fund 28198, LLC (Docket #532) 428 Variant Aircraft Released by Court $1,788,488.00 03/20/17 Fund 28198, LLC Order [Docket #532] 506 ITC-Aeroleasing, Inc. $8,656,894.89 08/10/17 Subject to Admin. Claim Objection [Docket #654] 296 Boeing Company $1,700,722.84 02/10/17 Negotiations Ongoing 442 Sentry Aircraft Leasing 3, LLC $785,379.24 03/21/17 Amended by POC #473 443 Sentry Aircraft Leasing 4, LLC $340,965.04 03/21/17 Amended by POC #476 444 Sentry Aircraft Leasing 5, LLC $376,055.52 03/21/17 Amended by POC #477 445 Sentry Aircraft Leasing 8, LLC $1,764,836.10 03/21/17 Amended by POC #474 446 Sentry Aircraft Leasing 1, LLC $1,066,477.84 03/21/17 Amended by POC #472 447 Sentry Capital Corp. of Utah $1,307,042.35 03/21/17 Amended by POC #471 86 State of NJ- Unclaimed Prop Unliquidated Amount 87 State of NJ- Unclaimed Prop Unliquidated Amount 88 State of NJ- Unclaimed Prop Unliquidated Amount 89 State of NJ- Unclaimed Prop Unliquidated Amount 90 State of NJ- Unclaimed Prop Unliquidated Amount 96 State of NJ- Unclaimed Prop Unliquidated Amount 97 State of NJ- Unclaimed Prop Unliquidated Amount 423 Treasurer of Virginia Unliquidated Amount LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 6
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 7 of 9 99 NY State Dept. of Labor Unliquidated Amount 390 NY State Dept. of Labor Unliquidated Amount 391 NY State Dept. of Labor Unliquidated Amount 392 NY State Dept. of Labor Unliquidated Amount 393 NY State Dept. of Labor Unliquidated Amount 394 NY State Dept. of Labor Unliquidated Amount 395 NY State Dept. of Labor Unliquidated Amount 396 NY State Dept. of Labor Unliquidated Amount 397 NY State Dept. of Labor Unliquidated Amount 398 NY State Dept. of Labor Unliquidated Amount 399 NY State Dept. of Labor Unliquidated Amount 400 NY State Dept. of Labor Unliquidated Amount 401 NY State Dept. of Labor Unliquidated Amount 402 NY State Dept. of Labor Unliquidated Amount 403 NY State Dept. of Labor Unliquidated Amount TO BE DISALLOWED UNSECURED CLAIMS TO BE DISALLOWED (SCHEDULED CLAIMS) Claimant Claim Amount Reason for Objection BELL HELICOPTER/TEXTRON CORP $4,000,000.00 Insufficient Documentation HELIFLEET 2013-01, LLC N415EV $348,414.40 Resolved by Stipulation SENTRY AIRCRAFT LEASING 8 105EV $273,618.00 Resolved by Stipulation BOEING COMPANY $269,002.27 Negotiations Ongoing HELIFLEET 2013-01, LLC N787SR $190,602.44 Resolved by Stipulation HELI FLEET 2013-01, LLC N300EV $186,756.39 Resolved by Stipulation SENTRY CAPITAL CORP #393AL $183,878.80 Resolved by Stipulation HELI FLEET 2013-01, LLC N367EV $176,008.31 Resolved by Stipulation SENTRY AIRCRAFT LEASING #N437CA $164,575.71 Resolved by Stipulation SENTRY AIRCRAFT LEASING #171CJ $161,587.53 Resolved by Stipulation HELIFLEET 2013-01, LLC N814EH $77,638.28 Resolved by Stipulation HELI FLEET 2013-01, LLC N8227J $62,859.80 Resolved by Stipulation VARIANT AIRCRAFT FUND 28198 LLC $60,615.70 Resolved by Court Order LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 7
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 8 of 9 EXHIBIT B Proposed Order IN THE UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION In re: ERICKSON INCORPORATED, et al., 3 Reorganized Debtors. Chapter 11 Bankruptcy Case No. 16-34393-HDH (Jointly Administered) ORDER REGARDING LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO CLAIMS Upon the Litigation Trustee's First Omnibus Objection to Claims (the "Objection") filed in the above-captioned chapter 11 cases, and having considered the Objection; and the Court being satisfied that good and sufficient notice of the Objection was given and that no other notice is 3 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor's federal tax identification number, include: Erickson Incorporated (7561); EAC Acquisition Corporation (3733); Erickson Helicopters, Inc. (5052); Erickson Transport, Inc. (9162); Evergreen Helicopters International, Inc. (1311); Evergreen Equity Inc. (9209); and Evergreen Unmanned Systems, Inc. (3961). The location of the Debtors' service address is 5550 SW Macadam Avenue, Suite 200, Portland, OR 97239. LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 8
Case 16-34393-hdh11 Doc 720 Filed 01/23/18 Entered 01/23/18 13:59:48 Page 9 of 9 required; and after due deliberation, finding that good and sufficient cause exists to grant the relief requested in the Objection; it is hereby ORDERED that: 1. The Objection is granted as provided herein. 2. The claims shown on Exhibit A to this Order are hereby disallowed and expunged from the official claims register. 3. This Court retains jurisdiction with respect to all matters arising from or related to the implementation of this Order. Submitted by: Raymond J. Urbanik Texas Bar No. 20414050 Okin Adams LLP 3811 Turtle Creek Boulevard, Suite 780 Dallas, Texas 75219 Telephone: 214.382.4995 E-mail: rurbanik@okinadams.com Matthew S. Okin Texas Bar No. 00784695 OKIN ADAMS LLP 1113 Vine Street, Suite 201 Houston, Texas 77002 Telephone: 713.228.4100 E-mail: mokin@okinadams.com # # # END OF ORDER # # # COUNSEL FOR ROBERT E. OGLE, LITIGATION TRUSTEE FOR THE ERICKSON LITIGATION TRUST LITIGATION TRUSTEE'S FIRST OMNIBUS OBJECTION TO GENERAL UNSECURED CLAIMS - PAGE 9