IN UNITED STATES BANKRUPTCY COURT

MIDDLE DISTRICT OF TENNESSEE (NASHVILLE DIVISION)

IN RE:

Chapter 11

CS DIP, LLC (f/k/a Church Street Health Management, LLC

Case No. 12-01573

SSHC DIP, LLC (f/k/a Small Smiles Holding Company, LLC

Case No. 12-01574

FNY DIP, LLC (f/k/a FORBA NY, LLC),

Case No. 12-01575

CONTINENTAL CASUALTY COMPANYS LIMITED OBJECTION TO THE

LIQUIDATING TRUSTEES MOTION FOR ORDER (A) APPROVING SETTLEMENT
WITH INSURERS, (B) GRANTING AN INJUNCTION IN FAVOR OF THE INSURERS,
AND (C) APPROVING TRUST DISTRIBUTION PROCEDURES
Continental Casualty Company, on behalf of itself and its North American underwriting
affiliates using the CNA trademark (hereinafter CNA) hereby submits the following objections
to the Motion of the Liquidating Trustee for Order (a) Approving Settlement with Insurers, (b)
Granting an Injunction in Favor of the Insurers, and (c) Approving Trust Distribution
Procedures, filed with the Court on or about May 6, 2015 (Dkt # 811, with attachments 1-4,
hereinafter the Motion). In support of its objection, CNA respectfully states as follows:
1.

In his Motion, the Liquidating Trustee seeks the Courts approval of a certain

proposed Settlement and Release Agreement with certain of Debtors insurers (the Settlement
Agreement). The Motion also seeks entry of a channeling injunction in favor of said insurers
(Injunction) and approval of certain Trust Distribution Procedures detailed in the Motion and
attachments thereto.
2.

CNA provided insurance to one of the Clinic Dentists described in the Motion and

Settlement AgreementDr. Gary L. Gusmerottiand filed a proof of claim in these proceedings

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on May 23, 2013, asserting potential rights of contribution in connection with the defense and
indemnity to be provided to Dr. Gusmerotti. (Claim #25.)
3.

As set forth in the Courts confirmation order (Dkt 653, hereinafter Confirmation

Order), the Debtors Second Amended Joint Plan of Reorganization (the Plan) was modified
to add certain language that would resolve objections raised by CNA to confirmation of the Plan.
As further described in the Confirmation Order, CNA agreed to be bound by the Plan in reliance
on these changes.
4.

CNA does not object to the substance or economics of the Motion and Settlement

Agreement.
5.

CNA does wish to confirm, however, that the terms of the Motion and Settlement

Agreement, as well as the proposed order to be entered thereon, are consistent with and subject
to the Plan, including but not limited to those provisions of the Plan that were amended to
address CNAs previous objection. As the Motion and Settlement Agreement are predicated on
the Plan, CNA hopes and expects that such confirmation will be non-controversial.
6.

CNA thus interposes a limited objection to the Motionsolely for purposes of

assuring that the Motion and Settlement Agreement will remain consistent with and subject to
the Plan. Upon receiving such confirmation in satisfactory formwhether through additional
language in the proposed order or otherwise, this limited objection will be withdrawn.
WHEREFORE, CNA respectfully requests that the relief requested in the Motion be
clarified to confirm that the Motion and Settlement Agreement (and the order and distribution
procedures to be adopted in connection with such) remain consistent with and subject to the Plan,
and that the Court grant such other and further relief as may be just and fitting under the
circumstances.

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Dated: May 26, 2015

Respectfully submitted,
CONTINENTAL CASUALTY COMPANY

Joseph A. Kelly
Frost Brown Todd LLC
The Pinnacle at Symphony Place
150 3rd Avenue South, Suite 1900
Nashville, TN 37201
Telephone: 615-251-5588
Facsimile: 615-251-5551

By: /s/ Joseph A. Kelly

One of Its Attorneys

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CERTIFICATE OF SERVICE
The undersigned hereby certifies that on the 26th day of May, 2015, a copy of the
foregoing was filed electronically. Notice of this filing will be sent by operation of the Court's
electronic filing system to all parties indicated on the electronic filing receipt and all counsel of
record. Parties may access this filing through the Court's electronic filing system.

/s/ Joseph A. Kelly

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