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`IN THE UNITED STATES BANKRUPTCY COURT
`FOR THE DISTRICT OF DELAWARE
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`In re:
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`HEXION HOLDINGS, LLC
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`Debtors.
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`Case No. 19-10684
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`Chapter 11
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`THE COUNTY OF BREWSTER, TEXAS, AND THE COUNTY OF MCCULLOCH
`CENTRAL APPRAISAL DISTRICT, TEXAS’ OBJECTION TO THE DEBTORS’
`CHAPTER 11 PLAN OF REORGANIZATION UNDER CHAPTER 11 OF THE
`BANKRUPTCY CODE
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`TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE:
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`The County of Bastrop, Texas, The County of McCulloch Central Appraisal District,
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`Texas, (the “Texas Taxing Authorities”) files their objection to the Debtor’s Chapter 11 Plan of
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`Reorganization (the “Plan”) and would respectfully show the Court the following:
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`1. The Texas Taxing Authorities are the holders of claims for pre-petition ad valorem real
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`and business personal property taxes for 2019 estimated against the property of the Debtors in
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`the aggregate amount of $270,517.36.
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`2. Texas Tax Code Section 32.01 provides that on January 1 of each year, a tax lien attaches
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`to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the
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`year on the property, whether or not the taxes are imposed in the year the lien attaches. The lien
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`exists in favor of each taxing unit having power to tax the property.
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`3. On January 1, 2019, personal liability arose and a statutory lien attached for the 2019 tax
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`year. The laws of the State of Texas, Property Tax Code, Section 32.05(b), gives this claim a
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`superior position over all other claims against this property. Stanford v. Butler, 826 F.2d 353
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`(5th Cir. 1987), 11 USC § 506; Universal Seismic Associates, Inc., 288 F.3d 205 (5th Cir.
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`2002); In Re Winn's Stores, Inc.; 177 B.R. 253 (Bktcy W.D. Tex 1995).
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`The Texas Taxing Authorities Objection to Plan
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`P a g e | 1
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`Case 19-10684-KG Doc 323 Filed 05/07/19 Page 2 of 3
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`4. The Plan provisions which deal with the secured claims of the Texas Taxing Authorities
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`fails to provide fair and equitable treatment to these secured claims as required by
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`1129(b)(1) and (2)(A) in that:
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`a. The ad valorem tax liens for all tax years should remain in full force and effect
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`until the taxes, as well as any penalties or interest that may ultimately accrue
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`thereunto, have been paid in full;
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`b. To the extent that the debtor intends to pay out these ad valorem tax claims, the
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`Texas Taxing Authorities are entitled to equal monthly payments in cash over a
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`period ending not later than five years after the Petition Date.
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`c. The Texas Taxing Authorities object to the treatment of their claims in the Plan to
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`the extent that the debtor fails to pay the 2019 taxes in the ordinary course, because
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`it does not specifically provide for them to receive post-Effective Date interest on
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`their claims at the state statutory rate of 12% per annum pursuant to 11 U.S.C.
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`Sections 511 and 1129.
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`d. The Texas Taxing Authorities are entitled to express retention of all property tax
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`liens currently securing their claims until all taxes and interest protected by those
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`liens have been paid as to any properties affected in any manner by this plan;
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`WHEREFORE, The Texas Taxing Authorities objects to the Debtor’s Chapter 11 Plan of
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`Reorganization and requests this Court to order appropriate provisions to assure the protection of
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`the position of their secured tax claims and further request other such relief as is just and proper.
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`Dated: May 7, 2019
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`The Texas Taxing Authorities Objection to Plan
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`P a g e | 2
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`Case 19-10684-KG Doc 323 Filed 05/07/19 Page 3 of 3
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`Respectfully Submitted,
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`McCREARY, VESELKA, BRAGG &
`ALLEN, P.C.
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`/s/ Tara LeDay
`Tara LeDay (TX 24106701)
`P. O. Box 1269
`Round Rock, TX 78680-1269
`Telephone: (512) 323-3200
`Fax: (512) 323-3500
`Email: tleday@mvbalaw.com
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`By:
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`CERTIFICATE OF SERVICE
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`Service has been accomplished on all parties required to be served under Local Rule
`9013(d) and at the proper address as required by 11 U.S.C. §342, at the respective addresses
`listed on this certificate, by first class U.S. mail, email, or telecopier transmission addressed as
`set forth below, on April 3, 2019:
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`/s/ Tara LeDay
`Tara LeDay
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`The Texas Taxing Authorities Objection to Plan
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`P a g e | 3
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