Case 1:09-bk Doc 584 Filed 03/08/10 Entered 03/08/10 16:45:35 Desc Main Document Page 1 of 10
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1 Document Page 1 of 10 UNITED STATES BANKRUPTCY COURT DISTRICT OF RHODE ISLAND In re: UTGR, Inc. d/b/a Twin River, et al 1 Chapter 11 Case No Debtor Jointly Administered OBJECTION TO CONFIRMATION OF PLAN Edward and Kevin Barrows (the Barrows ) object to confirmation of the Debtors Second Amended Joint Plan of Reorganization (the Plan ), and particularly to the proposed third-party discharge or releases proposed therein, and in support of this objection respectfully state as follows: 1. The Barrows are plaintiffs in a civil action pending in the Rhode Island Superior Court (Providence County), in a matter captioned Kevin Barrows and Edward Barrows vs. UTGR, Inc., d/b/a Twin River Casino, Nicholas Santoro, and John Doe, C.A The action alleges, among other claims, false imprisonment, extortion and negligence in connection with an incident at the Twin River Casino in November On November 25, 2009, the Court entered an order in these jointly administered cases (docket no. 430) granting relief from the automatic stay under Bankruptcy Code 362, permitting the Barrows to pursue recovery on their claims against the Debtors. 3. The Barrows believe that they have claims not just against the Debtors but, given the nature and extent of the alleged improper conduct and actions and the circumstances giving rise to the claims, also personally against certain individuals, including employees and others associated or affiliated with the Debtors. 1 The Debtors in these chapter 11 cases are BLB Management Services, Inc., BLB Worldwide Holdings, Inc., and UTGR, Inc., and reference to the Debtors in this motion includes a reference to all of such parties. 1
2 Document Page 2 of The Plan, however, including in Article X, paragraphs C-F on pages 36-38, provides not just for a discharge of claims against the Debtors (and corresponding injunctions) within the scope authorized under Bankruptcy Code 1141 and 524, but expands beyond that and purports to provide discharges and releases (along with accompanying exculpatory and injunctive provisions) to various non-debtor third parties, including employees of the Debtors and others against whom the Barrows have or may have claims, personally and individually. 5. Such third-party release provisions are improper and inappropriate, at least insofar as they would purport to preclude or curtail the Barrows from bringing an action against certain individuals, personally. See American Hardwoods, Inc. v. Deutsche Credit Corp. (In re American Hardwoods, Inc.), 885 F.2d 621, 626 (9th Cir.1989)) (citing In re Heron, Burchette, Ruckert & Rothwell, 148 B.R , 687 (Bankr.D.D.C.1992)), and Monarch Life Insurance Company, et al v. Ropes & Gray, 65 F.3d 973( 1 st Cir. 1995) (also citing to these cases, and discussing inappropriateness of providing for releases of non-debtor third parties through chapter 11 plans; and see also In re Boston Harbor Marina, Inc.,157 B.R. 726 (Bankr. D. Mass. 1993) and In re Elsinore Shore Associates, 91 B.R. 238, (Bankr.D.N.J.1988) (each holding that proposed plan not confirmable because it called for discharge of nondebtors). 6. The Barrows are aware of the carve-out from such purported third-party releases in paragraph D of Article X of the Plan for causes of action related to the willful misconduct or gross negligence of certain parties, but that does not address the threshold issue of how or why it is legally authorized and appropriate in the first instance for there to be any releases for non-debtors third parties, nor their concern, for example, with individual employees of the Debtors obtaining releases for acts that may not rise to the level of willful misconduct or gross negligence, but are outside of the scope of their employment or authority. 2
3 Document Page 3 of 10 WHEREFORE, Edward and Kevin Barrows object to confirmation of the Debtors Second Amended Joint Plan of Reorganization, and particularly the proposed third-party discharge or releases set out therein. Edward and Kevin Barrows By their Attorneys, March 5, 2010 /s/ Matthew J. McGowan Matthew J. McGowan, Esquire Salter McGowan Sylvia & Leonard, Inc. 321 South Main Street, Suite 301 (401) (401) Fax Bar No Thomas G. Briody, Esquire 91 Friendship Street (401) (401) Fax 3
4 Document Page 4 of 10 UNITED STATES BANKRUPTCY COURT DISTRICT OF RHODE ISLAND In re: UTGR, Inc. d/b/a Twin River, et al 2 Chapter 11 Case No Debtor Jointly Administered CERTIFICATE OF SERVICE I hereby certify that I have this date electronically filed a OBJECTION TO CONFIRMATION OF PLAN in this case with the Clerk of this Court using the CM/ECF System. The following are CM/ECF System participants in this case eligible to receive notice of the filing of such paper(s) electronically: Patricia Antonelli, Esquire Jennifer Azevedo, Esquire Paul M. Basta, Esquire Edward J. Bertozzi, Jr., Esquire Thomas G. Briody, Esquire Steven J. Boyajian, Esquire Catherine M. Campbell, Esquire Joseph V. Cavanagh, Jr., Esquire Joseph V. Cavanagh, III, Esquire Shelley C. Chapman, Esquire William M. Dolan, III, Esquire Gary L. Donahue, Esquire pa@psh.com jazevedo@dwlaw.us paul.basta@kirkland.com ebertozzi@eapdlaw.com tbriodylaw@aol.com steve@bhrlaw.com cmc@fczlaw.com jvc@blishcavlaw.com jvc3@blishcavlaw.com schapman@willkie.com wdolan@brownrudnick.com ustpregion01.pr.ecf@usdoj.gov 2 The Debtors in these chapter 11 cases are BLB Management Services, Inc., BLB Worldwide Holdings, Inc., and UTGR, Inc. 4
5 Document Page 5 of 10 Donlin, Recano & Company, Inc. Diane Finkle, Esquire Lisa A. Geremia, Esquire Michael Hagopian, Esquire Stephen E. Hessler, Esquire Stephen A. Izzi, Esquire Matthew T. Jerzyk, Esquire Brian J. Lamoureux, Esquire John P. McCoy, Esquire John J. McLaughlin, Esquire Sandra Nicholls, Esquire Theodore Orson, Esquire Steven C. Reingold, Esquire Todd J. Romano, Esquire alogan@donlinrecano.com dfinkle@wszlaw.com lisa@geremiademarco.com michael.hagopian@narrabay.com stephen.hessler@kirkland.com sizzi@mosesafonso.com matthew@dwlaw.us bjl@pldwlaw.com jmccoy@ckmlaw.com jmclaughlin@ameritech.net ustpregion01.pr.ecf@usdoj.gov torson@orsonandbrusini.com sreingold@jagersmith.com tromano@benjestlaw.com W. Mark Russo, Esquire mrusso@frlawri.com Christian D.H. Schultz, Esquire Allan M. Shine, Esquire Elizabeth A. Wiens, Esquire Christian.schultz@kirkland.com ashine@wszlaw.com lizwiens@yahoo.com I further hereby certify that I have this date served a copy of the above-referenced paper(s) on the following non CM/ECF participants by first class mail, postage prepaid, at the addresses noted below, or, where indicated, by Federal Express (*) or hand delivery (**) : Aalanco Service Corp. 80-B Turnpike Road Westborough, MA
6 Document Page 6 of 10 Michael T. Anderson, Esquire Murphy Anderson PLLC 111 Devonshire Street 5 th Floor Boston, MA Areo Mechanical c/o Rodio & Ursillo, Ltd Jeffrey M. Gibson, Esquire 66 Weybosset Street Bank Supplies, Inc N I 94 Service Drive Belleville, MI Paul M. Basta, Esquire * Stephen E. Hessler, Esquire Kirkland & Ellis LLP 601 Lexington Avenue New York, NY Stephen J. Carlotti Hinckley Allen & Snyder LLP 50 Kennedy Plaza Suite 1500 Joshua L. Celeste Duffy & Sweeney, Ltd Financial Plaza Michael D. Chittick Adler Pollock & Sheehan P.C. One Citizens Plaza George A. Davis, Esquire * Scott J. Greenberg, Esquire Cadwalader, Wickersham & Taft One World Financial Center New York, NY
7 Document Page 7 of 10 Debt Acquisition Company of America V, LLC 1565 Hotel Circle South, Suite 310 San Diego, CA Delta Mechanical c/o Pannone Lopes & Devereaux, LLC William E. O Gara, Esquire 317 Iron Horse Way, Suite 301 Design Studio 303 Inc Holman Ave 4 th Floor Hammond, IN Dimeo Construction Company 75 Chapman Street Providence, RI Dimeo Construction Company ** c/o Moses & Afonso, Ltd. Steven A. Izzi, Esquire 160 Westminster Street, Suite 400 Edwards Angel Palmer & Dodge ** Edward J. Bertozzi, Jr., Esquire 2800 Financial Plaza Jeff Fiondella Fiondella Milone & LaSaracina, LLP 300 Winding Brook Road Glastonbury, CT Fitzgerald Group 2 Commercial Group Sharon, MA Robert D. Goldberg Goldberg Law Office PO Box Cottage Street Pawtucket, RI
8 Document Page 8 of 10 Michael L. Hanna Sullivan & Company 50 Holden Street Providence, RI Internal Revenue Service Insolvency Unit 4 th Floor 380 Westminster Street Island Lottery Gerald Aubin, Director 1425 Pontiac Avenue Cranston, RI Jordan Paige Food Enterprises 9 Business Park Drive Branford, CT Kenneth Castelucci & Associates c/o Shechtman Halperin Savage, LLP Randall L. Souza, Esquire 1090 Main Street Pawtucket, RI Lazard Freres & Co LLC 30 Rockefeller Plaza New York, NY Mobile Storage, Inc. 81 Pilsudski Street Providence, RI Office of the US Trustee ** Gary Donahue, Esquire Sandra Nicholls, Esquire 10 Dorrance Street, Room 910 PricewaterhouseCoopers LLP 185 Asylum Street Suite 2400 Hartford, CT
9 Document Page 9 of 10 Steven C. Reingold, Esquire * Bruce F. Smith, Esquire Michael J. Fencer, Esquire Jager Smith, P.C. One Financial Center Boston, MA RI Dept of Health David Gifford, MD Office of Food Protection Three Capitol Hill Providence, RI RI Dept of Revenue Division of Taxation Gary S. Sasse One Capitol Hill Providence, RI RI Division of Taxation Bankruptcy Unit One Capitol Hill Providence, RI RI Office of Child Support Services 77 Dorrance Street RI Labor and Training One Capitol Hill, Suite 36 Providence, RI RI Labor and Training Legal Department Bldg 72, 3 rd Floor 1511 Pontiac Avenue Cranston, RI Ryan Electric Construction, Inc. 100 Minnesota Avenue Warwick, RI Allan M. Shine, Esquire ** Diane Finkle, Esquire 123 Dyer Street 9
10 Document Page 10 of 10 Siemens Building Technologies c/o Paul J. Bogosian, Jr. 49 Weybosset Street Sign Designs 459 Central Avenue Pawtucket, RI Robert M. Silva, Esquire 1100 Aquidneck Avenue Middletown, RI Bruce F. Smith, Esquire ** Jager Smith P.C. One Financial Center Boston, MA Starlight Limousine and Transportation Inc Pawtucket Avenue East Providence, RI Wood & Wire Fence 125 Higginson Avenue Lincoln, RI Town of Lincoln PO Box 100 Lincoln, RI Zolfo Cooper, LLC 1166 Avenue of the Americas New York, NY March 8, 2010 /s/ Jillane S. Padula F:\Contents\Twin River\Obj Confirm Plan.rtf 10
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