Newspaper article THE JOURNAL RECORD

B&w Metals Files Objection to Bid to Disqualify Counsel

Newspaper article THE JOURNAL RECORD

B&w Metals Files Objection to Bid to Disqualify Counsel

Article excerpt

Management for B & W Metals Inc. of Oklahoma City filed objections Tuesday to the Unsecured Creditors Committee's motions to d isqualify legal counsel working in the Chapter 11 bankruptcy case, to appoint a trustee to B & W's estate and to convert the bankruptcy to a Chapter 7 liquidation.

B & W is a subsidiary of Duff's Enterprises Inc., a unit of Oklahoma City-based Kelly-Johnston Enterprises Inc. The three firms have been in bankruptcy since April 16, 1985, along with other subsidiaries including Chi-Chi's Food Service and Joe Kelly's Inc.

The committee's motions were filed in U.S. Bankruptcy Court in Oklahoma City on Jan. 10.

The 170-member committee seeks to remove the law firms of Crowe & Dunlevy and Cohen, Todd, Kite & Standford as attorneys to B & W.

Among other complaints, the committee claims common management of B & W and the other four companies creates a conflict of interest. Creditors has stated that management has not spent enough time working with the company.

B & W was formed to manufacture specialized restaurant equipment for Duff's and the other company-owned firms.

At the time the bankruptcy petition was filed, B & W was primarily doing all of its business with Duff's.

According to the objection briefs, monthly sales are now averaging $40,000 through third party business.

Kelly Johnston filed its plan of reorganization on Jan. 17, projecting B & W's potential to make monthly sales of $150,000.

The committee claims B & W has shown continuing operating losses, using the example of a $227,577 loss recorded for the month on Aug. 18 and a loss of $353,541 on Dec. 8. The committee also believes there is no "reasonable likelihood of rehabilitation. …

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