In Re: Sandpoint Cattle Company, LLC

Filing 1

ORDER AND JUDGMENT - (RE: related document(s) 232 in BK13-40219 Objection to Claim No. 6 of Alger Cattle Company LLC filed by Debtor Sandpoint Cattle Company, LLC, 235 in BK13-40219 Objection to Claim No. 9 of Alger Cattle Company, LLC an d/or Raymar Farms filed by Debtor Sandpoint Cattle Company, LLC). This case was tried before the undersigned as a United States District Judge, sitting by designation for the District of Nebraska. I withdrew the reference to the bankruptcy cour t pursuant to 28 U.S.C. § 157( d) and tried the case in the United States District Court for the District of Nebraska. For administrative convenience, all pleadings and filings to date have been filed in the bankruptcy case with the clerk of the bankruptcy court for the District of Nebraska. For purposes of the entry of this order and judgment, I will request the clerk of the United States District Court for the District of Nebraska to open a file for Sandpoint Cattle Company, LLC, and to docket this order and judgment in the district court accordingly. As to Claim No. 6, the secured claim filed by Alger, the $10,800,000.00 promissory note will be reduced, as of the date of closing, by $1,016,319.00 for the mutual mistake regarding double counting, and $835,669.51 for the AM carrier cattle settlement. This results in a balance on the promissory note of $8,948,011.00 (rounded to the nearest dollar). It is that starting number that will b e used to determine the applicable interest accrued and against which credits will be applied for the payments and disposition of collateral for the purposes of determining the outstanding balances at the date of filing and the date of judgment. As to Claim No. 9, the unsecured claim, the previously allowed claim of $273,294.00 will be increased by the failure to make the payment for crop inputs of $250,000.00, for a total of $523,294.00. Deducting $398,1 31.83 from $523,294. Deducting $398,131.83 from $523,294 results in an allowed unsecured claim (Claim No. 9) of $125,162.17. Prior to entry of a final judgment and determination of a final dollar amount for Clai m No. 6, I will direct the parties to do the following within ten ( 10) days from the date of this order: 1. The parties are to identify if there are any issues that need to be resolved that have been omitted, and whether there has been any com putational errors as a result of my review of the evidence in this case. 2. The parties shall meet and confer in an attempt to compute the amount owed on Claim No. 6, both as of the date of filing and as of today's date (with an amount for d aily-accruing interest) in light of my determination of the various issues in dispute. This will be a strictly mathematical computation and, hopefully, the parties can reach an agreement as to an amount. In the event the parties are unable to do so, they shall advise me within 10 days, with specificity, as to the nature of the dispute and how each side computes the amount currently due and owing on the note. 3. The parties should begin discussions as to the valuation of the remaining c ollateral in an attempt to determine if Alger is oversecured and the amount of the claim that will have to be addressed in any proposed plan of re- organization. I anticipate setting a hearing by separate notice on a number of outstanding issues an d motions. 4. The parties should begin discussions as to the valuation of the remaining collateral in an attempt to determine if Alger is oversecured and the amount of the claim that will have to be addressed in any proposed plan of re-organizati on. I anticipate setting a hearing by separate notice on a number of outstanding issues and motions. DONE AND ORDERED this 10th day of June, 2014, by Judge Michael J. Melloy, U.S. Circuit Judge Sitting by Designation. (THIS DOCKET ENTRY IS ONLY A SUMMATION OF THE ORDER. SEE PDF ORDER AND JUDGMENT IN ITS ENTIRETY) (Attachments: # 1 Pages 25 through 49 of Order and Judgment, # 2 Docket Sheet, # 3 Attorney List)Ordered by Senior Circuit Judge Michael J. Melloy. (TCL )