Case Document 645 Filed in TXSB on 06/16/16 Page 1 of 5
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1 Case Document 645 Filed in TXSB on 06/16/16 Page 1 of 5 UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS CORPUS CHRISIT DIVISION IN RE: CHAPTER 11 SHERWIN ALUMINA COMPANY LLC, et al CASE No Debtors, (Jointly Administered) David R. Jones RESPONSE OF ARANSAS COUNTY, NUECES COUNTY AND SAN PATRICIO COUNTY TO DEBTORS SECOND OMNIBUS OBJECTION TO CERTAIN PROOFS OF CLAIM (NO-LIABILITY CLAIMS AND CLAIMS TO BE RECLASSSIFIED) (Relates to doc. # 628) To: The Honorable United States Bankruptcy Judge: Now Come Aransas County, Nueces County and San Patricio County ( Texas Taxing Entities ) secured creditors and parties in interest, and file the following Response of Texas Taxing Entities to Debtors Second Omnibus Objection to Certain Proofs of Claim (No- Liability Claims and Claims to be Reclassified) (the Objection ), and would show the Court as follows: 1. The Texas Taxing Entities do not dispute the assertions of jurisdiction, venue and statutory predicates set out in paragraph 1 of the Objection. 2. The Texas Taxing Entities deny the that the debtor is entitled to the relief requested in paragraphs 2 of the Objection. 3. The Texas Taxing Entities admit the facts stated in paragraphs 3-6 of the Objection. 4. The allegations contained in paragraphs 7 and 8 of the Objection are statements of law and not of fact. 1
2 Case Document 645 Filed in TXSB on 06/16/16 Page 2 of 5 5. The Texas Taxing Entities deny that their claims are no liability claims as set forth in paragraphs 9 and 10 of the Objection. 6. The Texas Taxing Entities can neither admit nor deny the facts alleged in paragraph 11 of the Objection as the allegations in this paragraph does not pertain to any claim filed herein by the Texas Taxing Entities. 7. With regard to the statements contained in paragraph 12 of the Objection, the Texas Taxing Entities assert that the Debtor should be compelled to seek all relief regarding the claims of the Taxing Entities in one pleading rather than in the proposed piecemeal process being reserved by the Debtor. The Claim 8. The Texas Taxing Entities are political subdivisions of the State of Texas, authorized and required by the Constitution and laws of the State of Texas to levy and collect ad valorem taxes and assessments on taxable real and personal property within their geographical boundaries in order to discharge their statutory duties. 9. The Texas Taxing Entities timely filed proofs of claim for estimated 2016 ad valorem taxes to be assessed on the Debtor s tangible business personal property located within the boundaries of the Texas Taxing Entities as set forth in the proofs of claim filed herein. 10. The Texas Taxing Entities claims are secured by paramount prior perfected continuing enforceable liens on property of the estate, as provided by Sections and 32.05(b) of the Texas Property Tax Code. 11. Section of the Texas Property Tax Code provides, in part, that: (a) On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property, 2
3 Case Document 645 Filed in TXSB on 06/16/16 Page 3 of 5 whether or not the taxes are imposed in the year the tax lien attaches. The lien exists in favor of each taxing unit having power to tax the property. (b) (d) A tax lien on inventory, furniture, equipment and other personal property is a lien in solido and attaches to inventory, furniture, equipment, and other personal property that the property owner owns on January 1 of the year the lien attaches or that the property owner subsequently acquires. The lien under this section is perfected on attachment and perfection requires no further action by the taxing unit. The Claim Objection 12. The Debtor objects to Texas Taxing Entities claims on the grounds that the 2016 taxes reflected in the claims are not yet payable. Taxing Entities agree that the taxes are not yet payable, but submit that the claims for 2016 taxes are both secured by liens on property of the estate (to the extent the property has not been transferred pursuant to the auction sale previously conducted in this case), and constitute prepetition claims that should not be dismissed or otherwise expunged until paid. See In Re Midland Industrial Service Corp., 35 F.3d 164 (5 th Cir. 1994). Payment of the tax claims can and should be addressed in any filed plan in this case. WHEREFORE, PREMISES CONSIDERED, the Texas Taxing Entities respectfully request that the Court deny the claims objections filed by the debtor with regard to the Texas Taxing Entities claims filed herein and enter its order allowing the subject tax claims to remain as valid and docketed claims, and for such other and further relief, at law or in equity, as is just. 3
4 Case Document 645 Filed in TXSB on 06/16/16 Page 4 of 5 Respectfully submitted, LINEBARGER GOGGAN BLAIR & SAMPSON, LLP /s/ Diane W. Sanders DIANE W. SANDERS TX State Bar No Via Fortuna Dr., Ste. 400 Austin, TX (512) (telephone) (512) (facsimile) diane.sanders@lgbs.com Attorney for Aransas County, Nueces County and San Patricio County 4
5 Case Document 645 Filed in TXSB on 06/16/16 Page 5 of 5 CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Texas Taxing Entities Response to the Debtors Second Omnibus Objection to Certain Proofs of Claim (No-Liability Claims and Claims to be Reclassified) has been served electronically to the ECF participants in this case and by First Class Mail to the parties listed below on this 16 th day of June, 2016 /s/ Diane W. Sanders DIANE W. SANDERS Kirkland & Ellis LLP Kirkland & Ellis International, LLP Christopher Marcus Joshua A. Sussberg 601 Lexington Avenue New York, New York Kirkland & Ellis LLP Kirkland & Ellis International, LLP James H.M. Sprayregen Gregory F. Pesce 300 North LaSalle Chicago, Illinois Zack A. Clement, PLLC Zack A. Clement 3753 Drummond Houston, Texas COUNSEL FOR THE DEBTORS AND DEBTORS IN POSSESSION 5
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