Four in One Company, Inc. v. SK Foods, L.P. et al

Filing 293

STIPULATION and ORDER signed by Chief District Judge Kimberly J. Mueller on 2/28/2020 CONTINUING the Status Conference to 9/24/2020 at 02:30 PM in Courtroom 3 (KJM) before Chief District Judge Kimberly J. Mueller, to address the status of the distributions to the Class and the closing of this action. (Huang, H)

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Michael P. Lehmann
Arthur N. Bailey, Jr.
HAUSFELD LLP
600 Montgomery Street, Suite 3200
San Francisco, CA 94111
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

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Class Counsel

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[Additional counsel on signature page]

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA, SACRAMENTO DIVISION

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FOUR IN ONE COMPANY, INC.,
on behalf of itself and all others similarly
situated,

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Plaintiffs,

Case No. 08-cv-3017 KJM EFB
STIPULATION AND ORDER TO
CONTINUE STATUS CONFERENCE

v.
SK FOODS, L.P., INGOMAR PACKING
COMPANY, LOS GATOS TOMATO
PRODUCTS, SCOTT SALYER, STUART
WOOLF and GREG PRUETT,

Date:
Time:
Place:
Judge:

March 5, 2019
2:30 p.m.
Courtroom 3
Hon. Kimberly J. Mueller

Defendants.

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WHEREAS, on September 16, 2014, the United States Bankruptcy Court for the Eastern
District of California entered an order confirming the "Second Amended Joint Plan of Liquidation
of SK Foods, LP and its Substantively Consolidated Affiliates (July 16, 2014)" [Dkt. No. 4980]
(the "SK Foods Bankruptcy Plan") in the Chapter 11 bankruptcy action filed by Defendant SK
Foods, L.P. (Case No. 09-29162-D-11); and
WHEREAS, Class counsel has informed undersigned counsel for Scott Salyer of the
following facts relating to SK Foods bankruptcy proceedings; and

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STIPULATION AND ORDER

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CASE NO. 08-CV-3017

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WEREAS, all funds from the Class settlements with Ingomar Packing Company, Los

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Gatos Tomato Products, Stuart Woolf and Greg Pruett have been paid and distributed to the Class

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and Final Judgment has been entered as to these Defendants in the consolidated cases Four in

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One Company v. SF Foods, LP, et al. (Case No. 2:08-cv-03017-KJM-EFB), Diversified Foods

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and Seasoning, Inc. v. SK Foods, et al. (Case No. 2:08-cv-03074 KJM-EFB), Bruce Foods

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Corporation v. SK Foods, LP, et al. (Case No. 2:09-cv-00027-KJM-EFB), and Cliffstar

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Corporation v. SK Foods, LP, et al. (Case No. 2:09-cv-00442-KJM-EFB) (the “Consolidated

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Cases”); and

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WHEREAS a portion of the funds previously recovered through the SK Foods bankruptcy

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action have been paid and distributed to the Class in the Consolidated Cases, and the only

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potential source of further distributions to the Class are additional funds recovered pursuant to the

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SK Foods Bankruptcy Plan in the bankruptcy action; and

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WHEREAS, Defendant SK Foods had affiliated companies in Australia, including SK

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Foods Australia Pty Ltd., (“SKFA”) which were liquidated; and the liquidators of SKFA did not

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follow proper procedures in paying themselves approximately five million seven hundred

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thousand Australian dollars (“AUD”) from the liquidation thereby requiring the liquidators to file

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an application for approval of remuneration with the Federal Court of Australia; and

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WHEREAS, on February 12, 2019, the Federal Court of Australia issued a ruling on the

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liquidators’ remuneration application providing for a reduction in their allowed compensation,

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and on June 12, 2019, issued an order regarding implementation of the reduction and providing

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that the liquidators will have to refund approximately AUD$1.9 million, plus interest, or around

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AUD$2.7 million; and

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WHEREAS, the Chapter 11 Trustee informed Class Counsel that the liquidators repaid

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AUD$2.7 million to SKFA and affiliated companies, and that ninety (90%) percent of the funds

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refunded by the liquidators (less currency conversion fees) have been paid to the Trustee; and that

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the Trustee was preparing for distribution to unsecured creditors pursuant to the SK Foods

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Bankruptcy Plan, an amount of approximately USD$1.6 million (90% of the AUD$2.7 at the

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estimated exchange rate); and
STIPULATION AND ORDER

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CASE NO. 08-CV-3017

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WHEREAS, The Chapter 11 Trustee has informed Class Counsel that, in addition to the

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Australian funds, the Trustee was preparing approximately $3.4 million to distribute resulting in

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total distribution of approximately $5 million to the unsecured creditors; and

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WHEREAS, on January 13, 2020, the Chapter 11 Trustee mailed a check to the escrow

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agent of Class Counsel for $306,954.36, an amount representing the second distribution to the

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Class of the Allowed General Unsecured Claim Amount of $10.6 million based on a distribution

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rate of 2.895796%, which was deposited into the escrow account for this case held by Class

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Counsel (the “Escrow Account Funds”); and

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WHEREAS, the Chapter 11 Trusted has informed Class Counsel that as of approximately

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January 16, 2020, the Trustee has made final distributions of bankruptcy funds to unsecured

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creditors and the Class, but anticipates some uncashed checks and returned mail, which under the

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plan and trust agreement the Trustee must wait 90 days for those checks to settle out, after which

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time the Trustee will file a motion to address any unclaimed funds or redistributions, if needed,

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and close the case; and

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WHEREAS, pursuant to the SK Foods Bankruptcy Plan, Class Counsel is in the process

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of arranging for the pro rata distribution of the Escrow Account Funds to Class members in

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accordance with the plan of allocation approved by this Court, subject to the fees awarded to

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Class Counsel by the bankruptcy court; and

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WHEREAS, the claims administrator anticipates the claims distribution process to take up

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to approximately six months to complete, depending on how many uncashed checks remain at the

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initial 90-day void date, and the response the claims administrator receives from outreach to the

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class members with uncashed checks; and

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WHEREAS, the Court has a Status Conference scheduled for March 5, 2020;

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NOW THEREFORE, the parties hereby stipulate, subject to this Court's approval, that the

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March 5, 2020 status conference be continued until September 10, 2020, or any other date

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convenient for the Court, to address status of the final distributions to the Class and the closing of

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this action.

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STIPULATION AND ORDER

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CASE NO. 08-CV-3017

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DATED: February 27, 2020

By:

DATED: February 27, 2020

By: /s/ Steig Olson (as authorized on 2/27/20)
Stephen R. Neuwirth
Steig Olson
QUINN EMANUEL URQUHART & SULLIVAN,
LLP
51 Madison Avenue, 22nd Floor
New York, New York 10010
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

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/s/ Arthur N. Bailey, Jr.
Michael P. Lehmann
Arthur N. Bailey, Jr.
HAUSFELD LLP
600 Montgomery Street, Suite 3200
San Francisco, CA 94111
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Class Counsel

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DATED: February 27, 2020

By:

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/s/ Malcolm Segal (as authorized on 2/26/20)
Malcolm Segal
SEGAL & ASSOCIATES LLP
400 Capitol Mall, Suite 2550
Sacramento, CA 95814
Telephone: [phone]
[e-mail]
Attorneys for Defendant Scott Salyer

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DATED: February 27, 2020

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By:

/s/ Gregory C. Nuti (as authorized on 2/26/20)
Gregory C. Nuti
Kevin W. Coleman
NUTI HART LLP
411 30th Street, Suite 408
Oakland, CA 94609
Telephone: [phone]
[e-mail]
[e-mail]
Attorneys for Bradley D. Sharp, Chapter 11 Trustee for
SK Foods, LP

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STIPULATION AND ORDER

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CASE NO. 08-CV-3017

ORDER
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GOOD CAUSE APPEARING THEREFORE, IT IS HEREBY ORDERED:

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The March 5, 2020 status conference shall be continued until September 24, 2020 to

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address the status of the distributions to the Class and the closing of this action.

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IT IS SO ORDERED.

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DATED: February 28, 2020.

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STIPULATION AND ORDER

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CASE NO. 08-CV-3017