TMST, Inc., 8% Senior Notes (TMA.GB)

[56Chevy]

SUMMARY OF PENDING LITIGATION

A. Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. Barclays Capital Inc., United States District Court for the District of Maryland, Case No. 11-cv-01982

The Parties are currently engaged in discovery and taking fact depositions. To date, the parties have taken approximately ten (10) depositions, with several additional depositions scheduled. Completion of fact discovery and submission of a status report is currently due January 31, 2013. Expert reports are to be exchanged by March 14, 2013 and discovery, including expert discovery, is to be completed by May 10, 2013. A trial date is to be set during the telephonic status conference scheduled on February 7, 2013.

B. Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. RBC Capital Markets Inc., United States District Court for the District of Maryland, Case No. 11-01998

During part of 2012, the Parties exchanged discovery requests and began to produce documents. The Trustee, believing that RBC failed to comply with its discovery obligations filed a Motion to Compel Discovery with the District Court on September 4, 2012. The matter was referred by the District Court to the Honorable Susan K. Gauvey, U.S. Magistrate District Court Judge and a hearing on the Motion to Compel was held on December 11, 2012. Judge Gauvey has taken the matter under advisement. A Joint Status Report was submitted to the District Court on December 4, 2012. Discovery is stayed until a determination is made on the
Trustee’s Motion to Compel. Thereafter, the Trustee will seek the entry of a revised scheduling order.

C. Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. Goldman Sachs &Co., United States District Court for the District of Maryland, Case No. 11-cv-02796 and Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. Goldman Sachs &Co., American Arbitration Association of New York, Case No. 13-512-01054-12 (the “AAA”)

Goldman filed a motion to stay or dismiss the action or, in the alternative to dismiss the Complaint. Among other things, Goldman asserted that one or more agreements entered into between it and TMST required the dispute to be arbitrated. On April 19, 2012, the District Court entered an Order and Memorandum holding that under the agreements cited by Goldman an arbitrator (and not the District Court) must first determine the threshold issue of “arbitrability”, i.e. whether the dispute is subject to arbitration. Accordingly, the District Court stayed the case
and directed the parties to arbitration. The Trustee filed his Demand for Arbitration on the issue of arbitrability with the AAA on May 2, 2012, Goldman filed an Answering Statement and Counterclaim on May 29, 2012 and the Trustee filed an Answering Statement to the Counterclaim on June 21, 2012. The Parties conferred regarding arbitration candidates, but both agreed upon candidates declined appointment. The Parties are awaiting further action by the AAA.

D. Joel I. Sher, Chapter 11 Trustee for TMST, Inc. and Zuni Investors, LLC v. Countrywide Home Loans, Inc. and Bank of America Corporation, United States District Court for the Central District of California, Case No. 12-cv-07289 (“California District Court”)

The Defendants filed Motions to Dismiss prior to the transfer of the case. The California District Court held a hearing on Countrywide’s Motion to Dismiss the Amended Complaint and Bank of America’s joinder therein on November 27, 2012. At the hearing, the California District Court advised that it would hold Countrywide’s Motion to Dismiss in abeyance pending the outcome of mediation that it ordered be conducted before the Honorable Kathleen Roberts, U.S. Magistrate Judge (retired), in New York. In addition, the California District Court ordered that if the mediation does not fully resolve the case, Bank of America may thereafter file any motion to dismiss with respect to successor liability issues. Mediation is tentatively scheduled to begin in January 2013 and to conclude by March 1, 2013. No scheduling order has been entered in this case. Additionally, the parties are currently engaged in settlement discussions and are discussing the parameters of a potential settlement.

E. Joel I. Sher, Chapter 11 Trustee for TMST Home Loans, Inc. v. Luxury Mortgage Corp. and Commonwealth Land Title Insurance Company, United States District Court for the District of Maryland, Case No. 11-cv-03656

Commonwealth Land Title Insurance Company’s Motion to Dismiss Trustee’s Crossclaim and Motion to Dismiss the Third-Party Complaint were denied per Order and Memorandum Opinion entered on November 20, 2012 [Dkt. No. 103]. Mediation is currently scheduled for February 6, 2013, before the Honorable Susan K. Gauvey, U.S. Magistrate District Court Judge.

F. Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. JPMorgan Chase Funding, Inc., et al., United States Bankruptcy Court for the District of Maryland, Adversary Proceeding Case No. 11-0340

The Counterparties filed a joint omnibus Motion to Dismiss the Amended Complaint and a Motion to Withdraw the Reference. On July 23, 2012, the Counterparties’ Motion to Withdraw the Reference was denied by Order of the District Court. The Counterparties’ Motion to Dismiss the Amended Complaint has been fully briefed and is pending. No scheduling order has been entered in the case.

G. Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. SS&C Technologies, Inc., United States Bankruptcy Court for the District of Maryland, Adversary Proceeding Case No. 11-0033 and Joel I. Sher, Chapter 11 Trustee for TMST, Inc. v. SS&C Technologies, Inc., United States District Court for the District of Maryland, Case No. 12-cv-01446

The Trustee’s Complaint to Avoid and Recover Fraudulent Transfers was filed on April 29, 2011 in the United States Bankruptcy Court for the District of Maryland (Adv. Pro. 11-0033-DWK). SS&C’s Motion to Dismiss Trustee’s Complaint was denied in its entirety per Order entered on March 26, 2012 [Dkt. No. 24]. The Trustee’s damages asserted in his Complaint are not less than $606,306.00.

On April 25, 2012, SS&C filed its Motion to Withdraw the Reference, which is pending before the Honorable Richard D. Bennett. No scheduling order has been entered in the case; however, the parties have been engaged in discovery and production of documents.

CONCLUSION

The Trustee continues to administer the Debtors’ estates and will file such reports, papers and pleadings as are appropriate from time to time.

Dated: December 28, 2012

Source: EPIQ Doc #1741

http://dm.epiq11.com/TMI/Docket#Debtors=3157&RelatedDocketId=&ds=true&maxPerPage=25&page=1

More detail re: each case is contained within the court doc.