Transcript
Case 14-10569-KG
Doc 192
Filed 04/23/14
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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE Chapter 11 In re: Case No. 14-10569 (KG) SIMPLEXITY, LLC, et al1 (Jointly Administered) Debtors. Related D.I. No. 56 LIMITED OBJECTION OF CLEARPATH SOLUTIONS GROUP, LLC AND CLEARPATH HOSTING, LLC TO MOTION FOR SALE OF PROPERTY FREE AND CLEAR OF LIENS UNDER SECTION 363(F) DEBTORS' MOTION FOR ENTRY OF (I) AN ORDER (THE BIDDING PROCEDURES ORDER") (A) APPROVING BID PROCEDURES IN CONNECTION WITH THE SALE OF CERTAIN ASSETS OF THE DEBTORS; (B) SCHEDULING HEARING TO CONSIDER SALE OF ASSETS; (C) APPROVING PROCEDURES FOR THE ASSUMPTION AND ASSIGNMENT OF CERTAIN CONTRACTS; (D) APPROVING FORM AND MANNER OF NOTICE THEREOF; (E) APPROVING TERMINATION FEE AND EXPENSE REIMBURSEMENT AS SUPER-PRIORITY ADMINISTRATIVE EXPENSE CLAIMS AGAINST THE DEBTORS; (F) APPROVING SUCCESS FEE PAYMENT TO DEBTORS' CHIEF EXECUTIVE OFFICER; AND (G) GRANTING RELATED RELIEF; AND (II) AN ORDER AUTHORIZING AND APPROVING (A) THE SALE OF CERTAIN OF THE DEBTORS; ASSETS FREE AND CLEAR OF LIENS, CLAIMS, RIGHTS, ENCUMBRANCES, AND OTHER INTERESTS; (B) THE ASSET PURCHASE AGREEMENT AND ANCILLARY AGREEMENTS; (C) THE ASSUMPTIONS AND ASSIGNMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES; AND (D) RELATED RELIEF Clearpath Solutions Group, LLC and Clearpath Hosting, LLC (collectively, “Clearpath”) renew its objection2 to the Motion For Sale of Property Free and Clear of Liens under Section 363(f) Debtors' Motion for Entry of (I) an Order (the Bidding Procedures Order") (A) Approving 1
The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal taxpayeridentification number, are: Simplexity, LLC (9770); Simplexity Services, LLC (2823) (together with Simplexity, LLC, the “Simplexity Debtors”); Adeptio INPC Holdings, LLC (4699)(“Adeptio” together with the Simplexity Debtors, the “Debtors”). The Simplexity Debtors’ mailing address is 10790 Parkridge Blvd., Suite 200, Reston, VA 20191. Adeptio’s mailing address is Cira Centre, 2929 Arch Street, Suite 1800, Philadelphia, PA 19104. 2
On April 2, 2014, Clearpath filed an objection to the Sale Motion prior to the deadline to object to the Debtors’ Bidding Procedures. Docket No. 92. Based on an agreement with the Debtors, Clearpath deferred its objection until the hearing on the actual sale. Out of an abundance of caution, Clearpath refiles this objection, which is substantively similar to its previous objection, in order to ensure that property to which it asserts title does not get sold.
Case 14-10569-KG
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Bid Procedures in Connection with the Sale of Certain Assets of the Debtors; (B) Scheduling Hearing to Consider Sale of Assets; (C) Approving Procedures for the Assumption and Assignment of Certain Contracts; (D) Approving Form and Manner of Notice Thereof; (E) Approving Termination Fee and Expense Reimbursement as Super-Priority Administrative Expense Claims Against the Debtors; (F) Approving Success Fee Payment to Debtors' Chief Executive Officer; and (G) Granting Related Relief; and (II) an Order Authorizing and Approving (A) the Sale of Certain of the Debtors; Assets Free and Clear of Liens, Claims, Rights, Encumbrances, and Other Interests; (B) the Asset Purchase Agreement and Ancillary Agreements; (C) the Assumptions and Assignment of Executory Contracts and Unexpired Leases; and (D) Related Relief [Docket No. 56] (the “Sale Motion”) filed by the Debtors, and in support thereof, state as follows: Clearpath does not object to the Sale Motion in general. However, Clearpath objects to allowing the sale of any property which may be in the Debtor’s possession but to which Clearpath still holds title (the “Clearpath Property”). A list of certain items of the Clearpath Property is attached as Exhibit A.3 While it does not appear from the Asset Purchase Agreement that the Debtors are seeking to sell the Clearpath Property, Clearpath seeks to reserve its rights because certain assets being sold are described generically, and because the Debtors are reserving their right to amend the Asset Purchase Agreement. Because the Debtors do not own the Clearpath Property, they have no right to sell the Clearpath Property, and should not be authorized to amend the Asset Purchase Agreement to include the Clearpath Property.
3
Clearpath is currently seeking to confirm that the list attached as Exhibit A is a complete list of the Clearpath Property. Clearpath reserves the right to assert title to additional items beyond those listed on Exhibit A.
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Clearpath requests that any order granting the Sale Motion reserve all claims of Clearpath to the Clearpath Property pending the outcome of an adversary proceeding. Specifically, Clearpath requests that any order granting the Sale Motion include the following language (the “Proposed Clearpath Sale Order Language”): Notwithstanding anything to the contrary herein, any security interests, claims to ownership and/or title of equipment/property, rights or defenses, including reclamation, setoff or recoupments rights and defenses that Clearpath Solutions Group, LLC and Clearpath Hosting, LLC and/or their affiliates (collectively, “Clearpath”) may have against the Debtors, or as to the Clearpath Property, as well as any defenses, objections or counterclaims of the Debtors, pre-petition senior secured agent, pre-petition senior secured creditors, DIP Lenders, the DIP Agent or the Committee (to the extent such parties have requisite standing), are not waived and are unaffected by this Order. WHEREFORE, Clearpath Solutions Group, LLC and Clearpath Hosting, LLC request that the Court condition any order approving the Sale Motion on the inclusion of the Proposed Clearpath Sale Order Language; and (2) grant such other relief as it deems appropriate and proper. Dated: April 23, 2014 Wilmington, DE
WHITEFORD TAYLOR & PRESTON LLC
/s/ Chad J. Toms Chad J. Toms (#4155) The Renaissance Centre 405 North King Street, Suite 500 Wilmington, DE 19801 Telephone: (302) 357-3253 Facsimile: (302) 357-3273 Email:
[email protected] Counsel for Clearpath Solutions Group and Clearpath Hosting, LLC 78705
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EXHIBIT A DESCRIPTION OF CLEARPATH EQUIPMENT Quantity
Part Number
Product Description
Unit Price
Extended Price
Hardware and Software Products Cisco UCS Bundle | (2) 6296 Fabric Interconnects | (1) Chassis | (4) B200 Blade Servers 1
UCS-SP7-INFR-FI96
$66,247.00
$66,247.00
CAB-C13-C14-AC
(Not sold standalone) UCS 6296UP 2RU Fabric Int w/18p LIC Power cord, C13 to C14 (recessed receptacle), 10A
4
$0.00
$0.00
8
DS-SFP-FC8G-SW
8 Gbps Fibre Channel SW SFP+, LC
$0.00
$0.00
4
SFP-10G-SR
10GBASE-SR SFP Module
$0.00
$0.00
12
SFP-H10GB-CU3M
10GBASE-CU SFP+ Cable 3 Meter
$0.00
$0.00
4
UCS-PSU-6296UP-AC
UCS 6296UP Power Supply/100-240VAC
$0.00
$0.00
8
UCS-FAN-6296UP
UCS 6296UP Fan Module
$0.00
$0.00
1
UCS-SP7-B200-P
$0.00
$0.00
1
UCS-SP-INFRA-CHSS
UCS SP7 B200 PERF 2x6296 1xCH 4xB200w/2x2680v2 256G UCS SP BASE 5108 Blade Svr AC Chassis
$0.00
$0.00
1
N01-UAC1
Single phase AC power module for UCS 5108
$0.00
$0.00
8
N20-FAN5
Fan module for UCS 5108
$0.00
$0.00
1
N20-FW011
UCS Blade Server Chassis FW Package 2.1
$0.00
$0.00
2
UCS-IOM-2208XP
UCS 2208XP I/O Module (8 External, 32 Internal 10Gb Ports)
$0.00
$0.00
4
UCSB-PSU-2500ACPL
$0.00
$0.00
4
CAB-C19-CBN
$0.00
$0.00
4
UCS-SP7-SR-B200-P
$0.00
$0.00
8
UCS-CPU-E52680B
$0.00
$0.00
64
UCS-MR-1X162RZ-A
$0.00
$0.00
8
UCSB-HS-01-EP
2500W Platinum AC Hot Plug Power Supply for UCS 5108 Chassis Cabinet Jumper Power Cord, 250 VAC 16A, C20-C19 Connectors (Not a standalone SKU) B200M3 w/ 2xE52680B16x16GBVIC1240 2.80 GHz E5-2680 v2/115W 10C/25MB Cache/DDR3 1866MHz 16GB DDR3-1866-MHz RDIMM/PC3-14900/dual rank/x4/1.5v CPU Heat Sink for UCS B200 M3 and B420 M3
$0.00
$0.00
4
UCSB-MLOM-40G-01
Cisco UCS VIC 1240 modular LOM for M3 blade servers
$0.00
$0.00
3
UCS-EZ7-CHS-EXP
UCS SP7 CHASSIS EXP w/2x2208 4xSERVER EXP
$0.00
$0.00
(3) Chassis | Dual 8-port 10Gb Cards | Quad 2500W Power Supplies 3
UCS-EZ-INFRA-CHSS
UCS EZ BUN 5108 Blade Svr AC Chassis 4PS 2 IOM
$7,875.00
$23,625.00
24
N20-FAN5
Fan module for UCS 5108
$0.00
$0.00
3
N20-FW011
UCS Blade Server Chassis FW Package 2.1
$0.00
$0.00
6
UCS-IOM-2208XP
UCS 2208XP I/O Module (8 External, 32 Internal 10Gb Ports)
$0.00
$0.00
4
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CAB-C19-CBN
3
N01-UAC1
12
UCSB-PSU-2500ACPL
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Cabinet Jumper Power Cord, 250 VAC 16A, C20-C19 Connectors Single phase AC power module for UCS 5108
$0.00
$0.00
$0.00
$0.00
2500W Platinum AC Hot Plug Power Supply for UCS 5108 Chassis (24) B200 Blade Servers | Dual 2.8GHz 10-core CPUs | 256GB Memory
$0.00
$0.00
24
UCS-EZ7-B200-P
UCS SP7 B200 PERF EXP w/ 2xE5-2680v2256GVIC1240
$9,900.00
$237,600.00
48
UCS-CPU-E52680B
$0.00
$0.00
384
UCS-MR-1X162RZ-A
$0.00
$0.00
48
UCSB-HS-01-EP
2.80 GHz E5-2680 v2/115W 10C/25MB Cache/DDR3 1866MHz 16GB DDR3-1866-MHz RDIMM/PC3-14900/dual rank/x4/1.5v CPU Heat Sink for UCS B200 M3 and B420 M3
$0.00
$0.00
24
UCSB-MLOM-40G-01
Cisco UCS VIC 1240 modular LOM for M3 blade servers
$0.00
$0.00
(2) Cisco X6704 10Gb Cards with (4) 10Gb Optics 2
WS-X6704-10GE=
Cat6500 4-port 10 Gigabit Ethernet Module (req. XENPAKs)
$9,100.00
$18,200.00
4
XENPAK-10GB-SR
10GBASE-SR XENPAK Module
$1,510.00
$6,040.00
2
MEM-XCEF720-256M
$0.00
$0.00
2
WS-F6700-CFC
Catalyst 6500 256MB DDR xCEF720 (67xx interface DFC3A) Catalyst 6500 Central Fwd Card for WS-X67xx modules
$0.00
$0.00
4
WS-F6K-XENBLNKCVR
Catalyst 6500 Xenpak Blank Covers for WS-X6704-10GE
$0.00
$0.00
Twinax Cables | 2m and 3m 2
SFP-H10GB-CU2M=
10GBASE-CU SFP+ Cable 2 Meter
$122.00
$244.00
4
SFP-H10GB-CU3M=
10GBASE-CU SFP+ Cable 3 Meter
$134.00
$536.00
Cisco MDS 9148 16-port Switch with Optics 1
MDS-9148-16
MDS 48PORT 8GB FC SWITCH 16 ACTIVE PORTS
$3,909.00
$3,909.00
16
MDS-SFP-8GSW
2/4/8-GBPS FC SHORTWAVE SWITCH SFP LC
$155.00
$2,480.00
5
Case 14-10569-KG
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Filed 04/23/14
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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE Chapter 11 In re: Case No. 14-10569 (KG) SIMPLEXITY, LLC, et al
1
(Jointly Administered) Debtors.
CERTIFICATE OF SERVICE I, Chad J. Toms, hereby certify that on April 23, 2014, I caused a true and correct copy of the Limited Objection of Clearpath Solutions Group, LLC and Clearpath Hosting, LLC to Motion for Sale of Property Free and Clear of Liens Under Section 363(F) Debtors' Motion for Entry of (I) an Order (the “Bidding Procedures Order") (A) Approving Bid Procedures in Connection With the Sale of Certain Assets of the Debtors; (B) Scheduling Hearing to Consider Sale of Assets; (C) Approving Procedures for the Assumption and Assignment of Certain Contracts; (D) Approving Form and Manner of Notice Thereof; (E) Approving Termination Fee and Expense Reimbursement as Super-Priority Administrative Expense Claims Against the Debtors; (F) Approving Success Fee Payment to Debtors' Chief Executive Officer; and (G) Granting Related Relief; and (II) an Order Authorizing and Approving (A) the Sale of Certain of the Debtors; Assets Free and Clear of Liens, Claims, Rights, Encumbrances, and Other Interests; (B) the Asset Purchase Agreement and Ancillary Agreements; (C) the Assumptions and Assignment of Executory Contracts and Unexpired Leases; and (D) Related Relief to be served on the persons listed below via U.S. Mail: 1
The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal taxpayeridentification number, are: Simplexity, LLC (9770); Simplexity Services, LLC (2823) (together with Simplexity, LLC, the “Simplexity Debtors”); Adeptio INPC Holdings, LLC (4699)(“Adeptio” together with the Simplexity Debtors, the “Debtors”). The Simplexity Debtors’ mailing address is 10790 Parkridge Blvd., Suite 200, Reston, VA 20191. Adeptio’s mailing address is Cira Centre, 2929 Arch Street, Suite 1800, Philadelphia, PA 19104.
Case 14-10569-KG
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Robert S. Brady, Esq. Edmon L. Morton, Esq. Young Conaway Stargatt & Taylor, LLP Rodney Square 1000 N. King Street Wilmington, DE 19801
Peter S. Partee, Esq. Hunton & Williams LLP 200 Park Avenue, 53rd Floor New York, NY 10166
Domenic E. Pacitti, Esq. Klehr Harrison Harvey Branzburg, LLP 919 Market Street, Suite 1000 Wilmington, DE 19801
Morton R. Branzburg, Esq. Klehr Harrison Harvey Branzburg, LLP 1835 Market Street, Suite 1400 Philadelphia, PA 19103
Sullivan & Cromwell LLP 125 Broad Street New York, NY 10004 (Attn: Mark U. Schneiderman)
Michael J. Merchant, Esq. Richards, Layton & Finger, PA One Rodney Square 920 North King Street Wilmington, DE 19801
Goldberg Kohn Ltd. 55 East Monroe Street Suite 3300 Chicago, IL 60603 (Attn: Randall L. Klein)
Gibson, Dunn & Crutcher, LLP 200 Park Avenue New York, NY 10166-0193 (Attn: Matthew K. Kelsey and Keith M. Martorana)
U.S. Trustee 844 King Street, Suite 2207 Wilmington, DE 19801 (Attn: Richard Schepacarter)
Christopher A. Ward, Esq. Shanti M. Katona, Esq. Polsinelli PC 222 Delaware Avenue, Suite 1101 Wilmington, DE 19801
Dated: April 23, 2014
WHITEFORD TAYLOR & PRESTON LLC /s/ Chad J. Toms Chad J. Toms, Esq. (#4155) Thomas J. Francella, Jr. (#3835) The Renaissance Centre 405 North King Street, Suite 500 Telephone: (302) 357-3253 Facsimile: (302) 357-3273 Email:
[email protected]
2090937
