Response to Motion for Relief Doc 136

 
RESPONSE
  TO  MOTION  FOR  RELIEF  FROM  AUTOMATIC  STAY  TO  PROCEED  IN  UNDERLYING 
LITIGATION – PAGE 1 
Gerrit M. Pronske 
State Bar No. 16351640 
Vickie L. Driver 
Texas Bar No. 24026886 
Christina W. Stephenson 
State Bar No. 24049535 
PRONSKE & PATEL, P.C. 
2200 Ross Avenue, Suite 5350 
Dallas, Texas 75201 
(214) 658-6500 – Telephone 
(214) 658-6509 – Telecopier 
Email: gpronske@pronskepatel.com 
Email: vdriver@pronskepatel.com 
Email: cstephenson@pronskepatel.com 
 
COUNSEL FOR JEFFREY BARON  
 
 
IN THE UNITED STATES BANKRUPTCY COURT 
FOR THE NORTHERN DISTRICT OF TEXAS 
DALLAS DIVISION 
 
In re:    §   
   §  
ONDOVA LIMITED COMPANY,  § CASE NO. 09-34784-SGJ-11 
   §  
    Debtor.           §   Chapter 11 
 
RESPONSE TO MOTION FOR RELIEF FROM AUTOMATIC  
STAY TO PROCEED IN UNDERLYING LITIGATION  
 
TO THE HONORABLE STACEY G. C. JERNIGAN, 
UNITED STATES BANKRUPTCY JUDGE: 
 
Jeffrey  Baron (“Baron”), a creditor in this case, hereby files this his  Response to Motion 
for Relief from Automatic Stay to Proceed in Underlying Litigation (“Response”) filed on October 
12, 2009 by Manila Industries, Inc. and Netsphere, Inc. (collectively, the “Netsphere Parties”) and 
in support thereof, respectfully represent as follows: 
I.  RESPONSE 
Paragraphs 1 through 17 of this Response reply to the paragraphs of the Motion for Relief 
from Automatic Stay to Proceed in Underlying Litigation ("Stay Motion") bearing the same 
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RESPONSE
  TO  MOTION  FOR  RELIEF  FROM  AUTOMATIC  STAY  TO  PROCEED  IN  UNDERLYING 
LITIGATION – PAGE 2 
number. 
1.  Baron admits the allegations contained in Paragraph 1 of the Stay Motion. 
2.  Baron denies the allegations contained in Paragraph 2 of the Stay Motion.  Baron 
further denies that the settlement agreement referenced in Paragraph 2 is enforceable.   
3.   Baron denies the allegations contained in Paragraph 3 of the Stay Motion. 
4.  Baron denies the allegations contained in Paragraph 4 of the Stay Motion, except 
for the existence of contentious litigation.  The Netsphere Parties failed to carry out the terms of 
the Settlement Agreement.  
5.   Baron denies the allegations contained in Paragraph 5 of the Stay Motion. 
6.   Baron denies the allegations contained in Paragraph 6 of the Stay Motion.     
7.   Baron admits that the Debtor filed its voluntary petition under Chapter 11 of the 
Bankruptcy Code in the Northern District of Texas, Dallas Division on or about July 27, 2009.   
8.   Baron denies the allegations contained in the first sentence of Paragraph 8 of the 
Stay Motion.  Baron admits the allegation that the Netsphere Parties have filed an objection to a 
motion filed by the Debtor.  Baron admits that Debtor’s bankruptcy counsel filed an emergency 
motion to continue the hearing.  Baron denies the allegations contained within the remainder of 
Paragraph 8 of the Stay Motion.  
9.   Baron admits the allegations contained in Paragraph 9 of the Stay Motion. 
10.    Baron is without sufficient information to admit or deny the content of his 
testimony as allegedly summarized in Paragraph 10 of the Stay Motion.   
11.   Baron admits the allegations contained in Paragraph 11 of the Stay Motion. 
12.   Baron admits the allegations contained within the first sentence of Paragraph 12 
of the Stay Motion.  Baron is without information to admit or deny the allegations contained 
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RESPONSE
  TO  MOTION  FOR  RELIEF  FROM  AUTOMATIC  STAY  TO  PROCEED  IN  UNDERLYING 
LITIGATION – PAGE 3 
within the second and third sentence of Paragraph 12 of the Stay Motion.  Baron admits that 
Judge Ferguson stated that he may appoint a receiver in the case, but denies the remainder of the 
allegations contained within the fourth sentence of Paragraph 12 of the Stay Motion.   
13.   Baron admits the allegations contained within the first sentence of Paragraph 13 
of the Stay Motion.  Baron admits that he properly invoked his Fifth Amendment rights at the 
September 11, 2009 hearing.   
14.   Baron admits that Daniel J. Sherman was appointed as Chapter 11 Trustee, but 
denies the remainder of the allegations in Paragraph 14 of the Stay Motion. 
15.   Baron is without sufficient information to admit or deny the allegations contained 
within Paragraph 15 of the Stay Motion.   
16.   Baron denies the allegations contained within Paragraph 16 of the Stay Motion. 
17.   Baron admits the allegations contained within Paragraph 17 of the Stay Motion. 
  II.   RELIEF REQUESTED 
18.  The balance of the contentions in the Stay Motion are legal contentions which 
Baron need not admit or deny.  To the extent the remainder of the Stay Motion contains any 
factual allegations, Baron denies that there is cause to lift the stay to allow the District Court 
litigation to be pursued in its entirety to conclusion.   
19.  Additionally, Baron submits that the automatic stay should be lifted for the 
purpose of allowing Mr. Peter Vogel to be paid out of the trust account of Friedman & Feiger, 
LLP as ordered by Judge Ferguson of the Federal District Court.  Baron does not agree that the 
stay should be lifted to allow payment to be made to Equivalent Data.   
III.  CONCLUSION 
20.   Movant has failed to sufficiently plead or prove “cause” as a basis for lifting the 
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RESPONSE
  TO  MOTION  FOR  RELIEF  FROM  AUTOMATIC  STAY  TO  PROCEED  IN  UNDERLYING 
LITIGATION – PAGE 4 
stay under 362(d)(1).  Moreover, the Stay Motion fails to show how the Property is not necessary 
to the Debtor’s reorganization.  Accordingly, it has failed to carry its burden under 362(d)(2) as 
well.  Therefore, Movant is not entitled to relief from the stay.  
  WHEREFORE PREMISES CONSIDERED, Baron respectfully requests this 
Court deny the Stay Motion and grant Baron such other and further relief whether in law or 
equity, to which Baron is entitled. 
Dated: October 27, 2009      Respectfully submitted  
            
      By:  /s/ Gerrit M. Pronske____ 
Gerrit M. Pronske 
Texas Bar No. 16351640 
Vickie L. Driver 
Texas Bar No. 24026886 
Christina W. Stephenson 
Texas Bar No. 24049535 
PRONSKE & PATEL, P.C. 
2200 Ross Avenue, Suite 5350 
Dallas, Texas 75201 
Telephone: 214.658.6500 
Facsimile: 214.658.6509 
Email: gpronske@pronskepatel.com 
Email: vdriver@pronskepatel.com 
Email: cstephenson@pronskepatel.com 
 
COUNSEL FOR JEFFREY BARON 
 
 
 
 
CERTIFICATE OF SERVICE
 
 
  I, the undersigned, hereby certify that on October 27, 2009 I caused to be served the 
foregoing pleading upon all parties registered to receive electronic notice via the Court’s 
electronic transmission facilities. 
 
       
       /s/ _Gerrit M. Pronske______
 
       Gerrit M. Pronske 
 
          
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