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UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION ______________________________________ In re: Chapter 11 1 DELTA PRODUCE, L.P. , Case No. 12-50073-LMC Debtors Jointly Administered _______________________________________ RESPONSE BY THE INTERNATIONAL BANK OF COMMERCE TO THE MOTION OF DELTA PRODUCE, L.P.S FOR AUTHORIZATION TO SELL PERSONAL PEROPERTY AT MINIMUM PRICES FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES TO THE HONORABLE LEIF M. CLARK, UNITED STATES BANKRUPTCY JUDGE: Now Comes INTERNATIONAL BANK OF COMMERCE (IBC), Respondent, to file this its Response (the Response) to the Motion of Delta Produce, L.P. (Delta) for Authorization to Sell Personal Property at Minimum Prices Free and Clear of all Liens, Claims and Encumbrances (the Motion to Sell) (Doc. No. 91) and would show unto the Court as follows. I. 1.1 SPECIFIC RESPONSES
IBC lacks personal knowledge of information set forth within 1 of the Motion to
Sell but does not dispute matters set forth therein. 1.2 IBC lacks personal knowledge of allegations relating to unencumbered vehicles,
and would therefore deny the allegations contained within 2 of the Motion to Sell and would require specific proof thereof by preponderance of credible evidence. 1.3 IBC does not dispute the allegations set forth within 3 of the Motion to Sell.
Debtors are the following entities: Delta Produce, L.P. Case No. 12-50073-LMC-11, Superior Tomato-Avocado, Ltd. Case No. 12-50074-LMC-11, Atled, Ltd. Case No. 12-50075-LMC11 and Staci Properties, Ltd. Case No. 12-50110-LMC
1.4 1.5
IBC does not dispute the allegations set forth within 4 of the Motion to Sell. IBC lacks personal knowledge of allegations of fact contained within 5 of the
Motion to Sell and would require specific proof thereof by preponderance of credible evidence. 1.6 IBC lacks personal knowledge of factual allegations contained within 6 of the
Motion to Sell but does not deny the allegations set forth therein. 1.7 Paragraph 7 of the Motion to Sell contains no allegations of fact requiring
admission or denial. 1.8 Paragraph 8 of the Motion to Sell contains no allegations of fact requiring
IBC is a secured creditor of the estate having extended prepetition loans on the
following basis: i. ii. iii. iv. Delta Note in the amount of $1,500,000.00 dated April 23, 2007; Delta Note in the amount of $2,000,000.00 dated April 1, 2007; Delta Note in the amount of $6,000,000.00 dated June 8, 2010; Staci Produce (Superior) Note in the amount of $2,000,00.00 dated March 3, 2005; v. Staci Properties (Superior) Note in the amount of $2,400,000.00 dated March 3, 2005; and vi. Alted, Ltd. Note in the amount of $1,300,000.00 dated December 12, 2005. IBC has previously tendered IBC Exhibit Nos. 1-16 as attachments to its reply of the Joint Motion of Some PACA Trust Beneficiaries and Debtors for Use of the PACA Trust Funds (Doc.
No. 45) and at the hearing held January 13, 2012 providing interim use of cash collateral. IBC requests that the Court take judicial notice of those previously tendered exhibits. 2.2 As of January 4, 2012, IBC shows that the combined outstanding balance owed to
IBC by the Debtors amounts to $6,455,615.00. True and correct copies of the documents evidencing the outstanding indebtedness owed to IBC by Debtors is attached to the Joint Motion of Some PACA Trust Beneficiaries and Debtors for Use of the PACA Trust Funds (Doc. No. 45), including therein, copies of Deed of Trusts and Security Agreements confirming collateral rights of IBC within virtually all property owned by Debtors. In essence, IBC asserts a security interest which globally attaches to practically all of Debtors property including real property, furniture, fixtures and equipment, inventory, account receivables, general in tangible and funds on deposit at IBC. IBCs security interest constitutes a first and prior security interest above all other collateral rights of creditors and parties-in-interest including collateral rights to Debtors receivables/cash and proceeds derived there from. 2.3 To the extent that IBC liens attached to any of the assets proposed to be sold by
Debtor, IBC requests that the Court make determinations that proceeds of sale are subject to IBC liens and subject thereto the Court required proceeds subject to IBC liens be turned over to IBC. PRAYER WHEREFORE, PREMISES CONSIDERED, IBC respectfully requests upon due consideration, this Court grant the Motion to Sell subject to the response contained therein related to the attachment, if any, and payment of sales proceeds to IBC to the extent of IBC lien attachment and that IBC be provide such other relief at law or in equity to which it may be justly entitled.
Respectfully submitted, MARTIN & DROUGHT, P.C. 2500 Bank of America Plaza 300 Convent Street San Antonio, Texas 78205-3789 (210) 227-7591 / (210) 227-7924 By: /s/ Michael G. Colvard Michael G. Colvard State Bar No. 04629200 ATTORNEYS FOR INTERNATIONAL BANK OF COMMERCE CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the above and foregoing instrument was forwarded via United States Mail, First Class, postage prepaid, to the parties listed on the attached service list on January 23, 2012. /s/Michael G. Colvard Michael G. Colvard
Staci Properties, Ltd. 2001 S Laredo St San Antonio, TX 78207-7023 United States Trustee - SA12 US Trustee's Office 615 E Houston, Suite 533 PO Box 1539 San Antonio, TX 78295-1539 AFLAC Insurance Company 1932 Wynnton Rd. Columbus, GA 31999-0797
Craig A. Stokes Stokes Law Offices, LLP 3330 Oakwell Court, Suite 225 San Antonio, TX 78218
Ace Bolt & Screw Co. 200 Brooklyn Ave. San Antonio, TX 78215-1826
Acme Soap Co., Inc. 1206 Fulton Ave. San Antonio, TX 78201
Alamo Leasing 2010 NW Military Hwy. San Antonio, TX 78213 Anchor Claims Management P.O. Box 819045 Dallas, TX 75381-9045
Alfonso Maldonado 1350 Ceralvo San Antonio, TX 78207 Andrew & Williamson 9940 Marconi Drive San Diego, CA 92154
Amazon Produce Network 546 Franklinville Rd. Mullica Hlll, NJ 08062 Avery Dennison 219 Duval Street San Antonio, TX 78208
Bentley Sheet Metal & Roofing P.O. Box 27336 San Antonio, TX 78227
Bexar County c/o David G. Aelvoet Linebarger, Goggan Blair Sampson 711 Navarro Suite 300 San Antonio, TX 78205
Bernardi & Associates 557 E. Frontage Rd. Nogales, AZ 85621 Bexar County Tax Assessor P.O. Box 839950 San Antonio, TX 78283-3950
Better Produce 301 W. Church St. Santa Maria, CA 93458 Blue Book Services 845 E. Geneva Rd. Carol Stream, IL 60188-3520
Bohls Bearing & Power Co. 211 Probandt St. San Antonio, TX 78204
Bronco Packaging Corporation 1100 Chase Rd., Suite 200 Mesquite, TX 75149
Central American Produce 2200 Park Central Blvd., #600 Pompano Beach, FL 33064-2220
Duckwall Fruit Co. Divine Ripe, LLC/C&R Fresh c/o Michael J. Black Burns & Black, PLLC 750 Rittiman Road San Antonio, Texas 78209-5500
Eco-Farms Sales, Inc. c/o Michael J. Black Burns & Black, PLLC 750 Rittiman Road San Antonio, Texas 78209-5500 Expo Fresh, LLC 8775 Airway Rd. San Diego, CA 92154-6207
Fisher, Herbst & Kemble, P.C. 9501 Console Dr., Suite 200 San Antonio, TX 78229
Gargiulo, Inc. c/o Michael J. Black Burns & Black, PLLC 750 Rittiman Road San Antonio, Texas 78209-5500 Guadalupe Lumber & Supply 1547 S. Zarzamora San Antonio, Texas 78207
Home Team Pest Defense 11900 Crownpoint Bldg., #A San Antonio, TX 78233-5356
Inter Tel Leasing, Inc. 1140 West Loop North Houston, TX 77055
Key Equipment Finance 600 Travis St., 14th Floor Houston, TX 77002
J.J. Keller & Associates, Inc. P.O. Box 548 Neenah, WI 54957-0548
Kingdom Fresh Produce, Inc. 2243 North Goolie Rd., #A Donna, TX 78537
Lone Star Fire & First Aide 449 Culebra San Antonio, TX 78201
M&P Produce Co., Inc. 1500 S. Zarzamora, #308 San Antonio, TX 78207
Mario A. Bustamante, M.D. 343 W. Houston, Suite 406 San Antonio, TX 78205
Mission Produce, Inc. 2500 Vineyad Ave., Suite 300 Oxnard, CA 93036
Mecca Family Farms, Ltd. P.O. Box 541779 Lake Worth, FL 33454-1779
Muller Trading Company Inc Jason R Klinowski Freeborn & Peters LLP 311 S Wacker Dr, Suite 3000 Chicago, IL 60606 NC Child Support 5800 Executive Center Dr., #200 Charlotte, NC 28212
Mr. W. Scott Jensen c/o Mr. Elliott S. Cappuccio Leslie Sara Hyman/Randall A. Pulman Pulman, Cappuccio, Pullen & Benson, 2161 NW Military Higwy., Ste 400 San Antonio, Texas 78213
Muller Trading Company, Inc. Bruce W. Akerly Cantey Hanger LLP 1999 Bryan Street, Suite 3300 Dallas, Tx 75201 NMHG Financial Services, Inc. 10 Riverview Dr. Danbury, CT 06810
Paccar Financial Corp. c/o Robert Reagan/William McLain Reagan McLain Lee & Hatch 6060 North Central Expressway Suite 690 Dallas, TX 75206
River City Produce 1616 So. Laredo St. San Antonio, TX 78207
Rush Truck Center of Texas P.O. BOx 200105 San Antonio, TX 78220
Rio Queen Citrus, Inc. c/o Michael J. Black Burns & Black, PLLC 750 Rittiman Road San Antonio, Texas 78209-5500 Ruben's Truck Brokerage P.O. Box 4106 McAllen, TX 78502
SBS Administrative Services 433 Kitty Hawk, #217 Universal City, TX 78148
San Antonio Merchant Shipping 9540 Ball st. San Antonio, TX 78217
San Antonio Water System P.O. Box 2449 San Antonio, TX 78298
Stokes Law Office, LLP 9155 S. Dadeland Blvd. Dadeland Centre, #1208 Miami, FL 33156
Tenn Tex Sales & Service 9304 Converse Business Lane Converse, TX 78109
The Dominion Country Club One Dominion Drive San Antonio, TX 78257
Tijerina & Sons, LLC 808 S. Shary Rd., Suite 5 Mission, TX 78572
U.S. Attorney General of Main Justice Bldg., #5111 10th & Constitutional Ave., NW Washington, DC 20530 Valero Marketing & Supply P.O. Box 300 Amarillo, TX 79105-0300
Vance Publishing Corp. a/k/a The Packer 10901 W 84th Terrace Suite 300 Lenexa, KS 66214 W&B Service Company 8803 IH 10 East Converse, TX 78109
U.S. Attorney 601 NW Loop 410, Suite 600 San Antonio, TX 78216
Walsma & Lyons 534 Gordon Industrial Ct. Byron Center, MI 49315-1002
West Coast Tomato, Inc. 530 5th Ave. Dr. W Palemetto, FL 34220
Wells Fargo Equipment Finance 733 Marquette Ave. S, #700 Minneapolis, MN 55402
Wortham Insurance & Risk 131 Interpark Blvd. San Antonio, TX 78216
Willson Davis Co. c/o Joe R. Hinojosa Barkhurst & Hinojosa, P.C. 110 Broadway, Suite 350 San Antonio, TX 78205
Anchor Claims Management 14785 Preston Rd., Suite 350 Dallas, TX 75254
Averitt Brokerage Co., Inc. 9999 Perrin Beitel, Suite B San Antonio, TX 78217
Bear Wheel Alignment & Garage 514 Merida St., Suite 101 San Antonio, TX 78207
Blue Creek Produce, LLC 303 West Main St. St. Charles, IL 60174
Big Chuy Distributors & Sons P.O. Box 1441 Nogales, AZ 85628
Big State Produce Company 1500 So. Zarzamora, #418 San Antonio, TX 78207
California Fruit Produce 1500 So. Zarzamora, #338 San Antonio, TX 78207
Chuy's Produce 1500 S. Zarzamora St., Unit 434 San Antonio, TX 78207
Compton Brokerage, Ltd. 5530 IH-10 East., Bldg. F San Antonio, TX 78219-4505
Direct Source Produce 1500 S. Zarzamora, Unit 707 San Antonio, TX 78207
Flake Brokerage Co./Ed 1500 So. Zarzamora, #108 San Antonio, TX 78207
Flatiron Capital Corp. 950 17th St., Suite 1300 Denver, CO 80202
Fresh Farm Direct, LLC 106 Adams St., Suite 2A Monte Vista, CLO 81144
Fresh Start Produce 5353 W. Atlantic Ave. Suite 403-404 DelRay Beach, FL 33484-8166 G & G Produce, LLC Av Los Angeles #1000 Bodaga 306 San Nicolas De Los G N.L. Mexico Gonzalez Mexican Produce 2501 W. Military Hwy., A-23 McAllen, TX 78503
Fresh Start Produce Sales c/o Michael J. Black 750 Rittiman Road San Antonio, Texas 78209-5500 GE Capital P.O. Box 740423 Atlanta, GA 30374-0423
Gargiulo, Inc. c/o Michael J. Black 750 Rittiman Road San Antonio, Texas 78209-5500 Greenhouse Produce Co., Inc. 4001 W. Ursula Ave. McAllen, TX 78503
Great Southern Life Insurance P.O. Box 807004 Kansas City, MO 64180-7004
Henry Avocado Corp. c/o Michael J. Black 750 Rittiman Road San Antonio, Texas 78209-5500 Jack's Produce P.O. Box 561 Pearsall, TX 78061
Nino's Fresh Cut Fruits & Veggies 1500 S. Zarzamora, Unit 404 San Antonio, TX 78207
Office Depot P.O. Box 689020 Dept. 56-4101705159 Des Moines, IA 50368-9020 Pacific Sales Company P.O. Box 9869 Fresno, CA 93794-0869
R.C. Food Service & Produce 305 Market St. Laredo, TX 78040
San Antonio Brokerage or Freight 1500 So. Zarzamora, #225 San Antonio, TX 78207
Six L's Packing Co., Inc. P.O. Box 3088 Immokalee, FL 34143
So. Central Brokerage 11550 IH 10 West, Suite 232 San Antonio, TX 78230
South Shore Carriers, Inc. 12080 SW 127 Ave., #127 Miami, FL 33186
Southern Tire Mart, LLC P.O. Box 1000, Dept. 143 Memphis, TN 38148-0143
Sunriver Sales c/o Michael J. Black 750 Rittiman Road San Antonio, Texas 78209-5500 The Packer 4309 Payshpere Circle Chicago, IL 60674
Touchstone & Associates 1500 S. Zarzamora St., #205 San Antonio, TX 78207
Unifresh, Inc. 1500 So. Zarzamora St., #348 San Antonio, TX 78207
Vance Publishing Corporation a/k/a The Packer 10901 W 84th Terrace Suite 300 Lenexa, KS 66214
Tijerina & Sons, LLC c/o Zachary B. Aoki Thurman & Phillips, P.C. 8000 IH-10 West, Suite 1000 San Antonio, TX 78230
Dian M. Geis/Paul T. Curl Curl & Stahl, P.C. 700 N. St. Marys Street, Suite 1930 San Antonio, TX 78205