In re: Colt Holding Company LLC, et al.

Filing 5

Recommendation that Bankruptcy Appeal be withrawn from mandatory mediation. Signed by Judge Mary Pat Thynge on 10/13/15. (cak)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
In re: Colt Holding Company, LLC, et al.

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: Bankruptcy Case No. 15-11296-LSS
Debtor.
: BAP No.48
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USA and UAW 376,
Appellant,
v.
COLT HOLDING COMPANY, LLC, et al.,
Appellees.

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C. A. No. 15-834-GMS

RECOMMENDATION
At Wilmington this 13th day of October, 2015.
WHEREAS, pursuant to paragraph 2(a) of the Procedures to Govern
Mediation of Appeals from the United States Bankruptcy Court for this District dated
September 11, 2012, the court conducted an initial review, which included information
from counsel, to determine the appropriateness of mediation in this matter;
WHEREAS, the appellant (“UAW”) and appellees (“Debtors”) are parties
to a collective bargaining agreement (“CBA”) which covers a significant majority of the
employees at the Debtors’ operating facility in Connecticut. The UAW’s appeal asserts
that the Bankruptcy Court violated 11 U.S.C. §1113(f) by entering a “Bid Procedures
Order” for the sale of substantially all assets of the Debtors when neither the Bid
Procedures Order nor the Bid Procedures required that “Qualified Bids” provide that the
potential purchaser assume the CBA with the UAW. The debtors have advised the

Bankruptcy Court that they are having productive discussions with interested parties
which will enable them to put forth a confirmable Plan of Reorganization and emerge
from bankruptcy by the end of 2015. The restructuring support agreement which forms
the basis of the Plan intended to be proposed does not envision a sale of assets. The
parties to this appeal have recently engaged in productive discussions in relation to the
restructuring process.
At this time, neither party believes mediation would aid in the resolution of the
issues on appeal. They propose a briefing schedule with the opening brief due in ninety
(90) days and the responsive brief due thirty (30) days thereafter to allow the UAW and
the Debtors to continue their discussions on reorganization. If successful on reaching a
consensual reorganization, the issues on appeal likely will not need to be decided.
THEREFORE, IT IS RECOMMENDED that, pursuant to paragraph 2(a)
Procedures to Govern Mediation of Appeals from the United States Bankruptcy Court
for this District and 28 U.S.C. § 636(b), this matter be withdrawn from the mandatory
referral for mediation and proceed through the appellate process of this Court. Through
this Recommendation, the parties are advised of their right to file objections to this
Recommendation pursuant to 28 U.S.C. § 636(b)(1)(B), FED. R. CIV. P. 72(a) and D.
DEL. LR 72.1.
IT IS FURTHER RECOMMENDED that the following briefing schedule be
entered:
Appellant’s Opening Brief

January 15, 2016

Appellees’ Answering Brief

February 16, 2016

Appellant’s Reply Brief

March 1, 2016
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Local counsel are obligated to inform out-of-state counsel of this Order.
/s/ Mary Pat Thynge
UNITED STATES MAGISTRATE JUDGE

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