KLESTADT & WINTERS, LLP Ian R. Winters Sean C.

Southard Counsel to the Official Committee of Unsecured Creditors 570 Seventh Avenue, 17th Floor New York, NY 10017 (212) 972-3000

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------------x : In re: : : LEHR CONSTRUCTION CORP. : : Debtor. : : --------------------------------------------------------------x

Chapter 11 Case No. 11-10723 (SHL)

LIMITED OBJECTION OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS TO DEBTORS AMENDED MOTION FOR ENTRY OF AN ORDER AUTHORIZING PAYMENT OF PREPETITION CRITICAL CONSTRUCTION CLAIMS FOR SUBCONTRACTORS AND VENDORS WHO HAVE STATUTORY LIEN RIGHTS

The Official Committee of Unsecured Creditors (the Committee) of Lehr Construction Corp., debtor and debtor-in-possession in the above-captioned chapter 11 case (Debtor), by and through its counsel, Klestadt & Winters, LLP, as and for its limited objection (Limited Objection) to the Debtors Amended Motion for Entry of an Order Authorizing Payment of Prepetition Critical Construction Claims for Subcontractors and Vendors Who Have Statutory Lien Rights (the Motion), hereby sets forth as follows: Background 1. The Debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy

Code with the United States Bankruptcy Court for the Southern District of New York on February 21, 2011 (the Petition Date).

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On March 9, 2011, the Debtor filed its Motion of the Debtor for Entry of an Order

Authorizing Payment of Prepetiton Critical Construction Vendor Claims and to Provide Adequate Assurance of Future Performance for Subcontractors and Materialmen Who Have Statutory Lien Rights. 3. On March 11, 2011, the Office of the United States Trustee appointed the

Committee, which consists of the following five (5) members: (i) Robert Samuels, Inc., (ii) Superior Acoustics, Inc., (iii) Marlin, Inc., (iv) Rockmor Electric Enterprises, Inc., and (v) BP Mechanical Corp. 4. On March 15, 2011, the Committee selected Klestadt & Winters, LLP as its

counsel to represent the Committee in all matters relating to the Debtors Chapter 11 case. 5. On March 28, 2011, the Debtor filed the Motion. Limited Objection 6. The Debtor has failed to disclose sufficient information concerning the

profitability of the NBA Project for the Committee to evaluate whether the payment of prepetition claims (the Critical Construction Claims) held by certain critical construction subcontractors and vendors (collectively, the Critical Construction Creditors) is justified. 7. The Committee has requested evidence from the Debtor concerning the

profitability of the NBA project, which it has not yet received. Nor has the Committee been provided with an overall wind down plan to ascertain how this particular contract fits into the overall efforts of liquidating the estate. Without such information, the Committee cannot determine whether payment of the Critical Construction Claims will be a net benefit to the estate.

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Accordingly, the Committee requests that the Court delay ruling on the Motion

until such time that the Committee is provided with the requested information and is given due time to evaluate it. 9. Furthermore, the Motion improperly grants the Debtor sole and unfettered

discretion to determine which Critical Construction Claims to pay (if any) and how much to pay them. 10. Before the Debtor is permitted to favor any of the Critical Construction Creditors

over the rest of the general creditor body, it should be required to consult the Committee regarding the necessity of the Critical Construction Claim and amount it intends to pay. 11. Finally, although the paragraph nineteen of the Motion provides that a

subcontractor or vendor who receives payment pursuant to this Motion will waive the right to assert any liens against the NBA Project, the Order Authorizing Payment of Prepetition Critical Construction Claims for Subcontractors and Vendors Who have Statutory Liens (the Proposed Order) lacks such a provision. 12. The Committee, therefore, requests the Proposed Order be modified to explicitly

include such a provision.

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WHEREFORE, the Committee requests that this Court adjourn consideration of the Motion until the Committee is provided with information concerning the profitability of the NBA Project and otherwise approve the relief requested in the Motion as modified in accordance with the comments of the Committee contained herein. Dated: New York, New York March 31, 2011 Respectfully submitted,
KLESTADT & WINTERS, LLP Proposed Counsel to the Official Committee of Unsecured Creditors /s/Sean C. Southard__________ Ian R. Winters Sean C. Southard 570 Seventh Avenue, 17th Floor New York, New York 10017 By:

(212) 972-3000

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