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UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION ______________________________________ In re: Chapter 11 1 DELTA PRODUCE, L.P. , Case No. 12-50073-LMC Debtors Jointly Administered _______________________________________ RESPONSE BY THE INTERNATIONAL BANK OF COMMERCE TO THE MOTION OF DELTA PRODUCE, L.P.S FOR AUTHORIZATION TO SELL PERSONAL PEROPERTY AT MINIMUM PRICES FREE AND CLEAR OF ALL LIENS, CLAIMS AND ENCUMBRANCES TO THE HONORABLE LEIF M. CLARK, UNITED STATES BANKRUPTCY JUDGE: Now Comes INTERNATIONAL BANK OF COMMERCE (IBC), Respondent, to file this its Response (the Response) to the Motion of Delta Produce, L.P. (Delta) for Authorization to Sell Personal Property at Minimum Prices Free and Clear of all Liens, Claims and Encumbrances (the Motion to Sell) (Doc. No. 322) and would show unto the Court as follows. I. 1.1 SPECIFIC RESPONSES

IBC lacks personal knowledge of information set forth within 1 of the Motion to

Sell but does not dispute matters set forth therein. 1.2 IBC lacks personal knowledge of allegations relating to unencumbered vehicles,

and would therefore deny the allegations contained within 2 of the Motion to Sell and would require specific proof thereof by preponderance of credible evidence. 1.3 IBC does not dispute the allegations set forth within 3 of the Motion to Sell.

Debtors are the following entities: Delta Produce, L.P. Case No. 12-50073-LMC-11, Superior Tomato-Avocado, Ltd. Case No. 12-50074-LMC-11, Atled, Ltd. Case No. 12-50075-LMC11 and Staci Properties, Ltd. Case No. 12-50110-LMC

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1.4 1.5

IBC does not dispute the allegations set forth within 4 of the Motion to Sell. IBC denies the allegations contained within 5 of the Motion to Sell and would

require specific proof thereof by preponderance of credible evidence. 1.6 IBC lacks personal knowledge of factual allegations contained within 6 of the

Motion to Sell but does not deny the allegations set forth therein. 1.7 Paragraph 7 of the Motion to Sell contains no allegations of fact requiring

admission or denial. 1.8 Paragraph 8 of the Motion to Sell contains no allegations of fact requiring

admission or denial IBC requires that sale proceeds be paid to IBC . II. 2.1 FURTHER ARGUMENTS

IBC is a secured creditor of the estate having extended prepetition loans on the

following basis: i. ii. iii. iv. Delta Note in the amount of $1,500,000.00 dated April 23, 2007; Delta Note in the amount of $2,000,000.00 dated April 1, 2007; Delta Note in the amount of $6,000,000.00 dated June 8, 2010; Staci Produce (Superior) Note in the amount of $2,000,00.00 dated March 3, 2005; v. Staci Properties (Superior) Note in the amount of $2,400,000.00 dated March 3, 2005; and vi. Alted, Ltd. Note in the amount of $1,300,000.00 dated December 12, 2005. IBC has previously tendered IBC Exhibit Nos. 1-16 as attachments to its reply of the Joint Motion of Some PACA Trust Beneficiaries and Debtors for Use of the PACA Trust Funds (Doc.

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No. 45) and at the hearing held January 13, 2012 providing interim use of cash collateral. IBC requests that the Court take judicial notice of those previously tendered exhibits. 2.2 As of January 4, 2012, IBC shows that the combined outstanding balance owed to

IBC by the Debtors amounts to $6,455,615.00. True and correct copies of the documents evidencing the outstanding indebtedness owed to IBC by Debtors is attached to the Joint Motion of Some PACA Trust Beneficiaries and Debtors for Use of the PACA Trust Funds (Doc. No. 45), including therein, copies of Deed of Trusts and Security Agreements confirming collateral rights of IBC within virtually all property owned by Debtors. In essence, IBC asserts a security interest which globally attaches to practically all of Debtors property including real property, furniture, fixtures and equipment, inventory, account receivables, general in tangible and funds on deposit at IBC. IBCs security interest constitutes a first and prior security interest above all other collateral rights of creditors and parties-in-interest including collateral rights to Debtors receivables/cash and proceeds derived there from. 2.3 To the extent that IBC liens attached to any of the assets proposed to be sold by

Debtor, IBC requests that the Court make determinations that proceeds of sale are subject to IBC liens and subject thereto the Court required proceeds subject to IBC liens be turned over to IBC. PRAYER WHEREFORE, PREMISES CONSIDERED, IBC respectfully requests upon due consideration, this Court grant the Motion to Sell subject to the response contained therein related to the attachment, if any, and payment of sales proceeds to IBC to the extent of IBC lien attachment and that IBC be provide such other relief at law or in equity to which it may be justly entitled.

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Respectfully submitted, MARTIN & DROUGHT, P.C. 2500 Bank of America Plaza 300 Convent Street San Antonio, Texas 78205-3789 (210) 227-7591 / (210) 227-7924 By: /s/ Michael G. Colvard Michael G. Colvard State Bar No. 04629200 ATTORNEYS FOR INTERNATIONAL BANK OF COMMERCE CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the above and foregoing instrument was forwarded via United States Mail, First Class, postage prepaid, to the parties listed on the attached service list on October 1, 2012. /s/Michael G. Colvard Michael G. Colvard

12-50073-lmc Doc#327-1 Filed 10/01/12 Entered 10/01/12 16:32:26 Service List Pg 1 of 3

Delta Produce, LP 2001 S Laredo St San Antonio, TX 78207-7023 Super Tomato-Avocado, Ltd. 2001 S Laredo St San Antonio, TX 78207-7023 Staci Properties, Ltd. 2001 S Laredo St San Antonio, TX 78207-7023 William R. Davis Jr Allen M. DeBard Langley & Banack, Inc 745 E Mulberry, Suite 900 San Antonio, TX 78212 Del Campo Supreme, Inc. 672 W. Frontage Rd. Noales, AZ 85621

Atled, Ltd. 200 S Laredo St San Antonio, TX 78207-7023 United States Trustee - SA12 US Trustee's Office 615 E Houston, Suite 533 PO Box 1539 San Antonio, TX 78295-1539 Dimare Newman, Inc. P.O. Box 517 Newman, CA 95360-0517

Craig A. Stokes Stokes Law Offices, LLP 3330 Oakwell Court, Suite 225 San Antonio, TX 78218

A&A Transportation, Inc. 4741 College Park San Antonio, TX 78249

Divine Ripe, LLC 9901 S. Jackson Rd. #A Pharr, TX 78577-6961

Frank's Distributing of Produce P.O. Box 2020 Nogales, AZ 85628-2020

Harllee Packing, Inc. P.O. Box 8 Palmetto, FL 34220

Harvest Crown Co., Inc. P.O. Box 13578 Bakersfield, CA 93389 J-C Distributing, Inc. 2731 N. Donna Avenue Nogales, AZ 85621

IFCO Systems NA 5250 Tacco Drive San Antonio, TX 78244

Alamo Leasing 2010 NW Military Hwy. San Antonio, TX 78213 International Bank of Commerce 130 E. Travis San Antonio, TX 78205

Kingdom Fresh Produce, Inc. 2243 North Goolie Rd., #A Donna, TX 78537 Mission Produce, Inc. 2500 Vineyad Ave., Suite 300 Oxnard, CA 93036

Juniper Tomato Grower, Inc. P.O. Box 38 Greensboro, FL 32330

Rio Queen Citrus 4012 E. Goodwin Rd. Mission, TX 78574

Royal Flavor, LLC 2655 Melksee St. San Diego, CA 92154

Internal Revenue Service P.O. Box 7346 Philadelphia, PA 19101-7346

Valero Marketing & Supply P.O. Box 300 Amarillo, TX 79105-0300

A & D Carriers 4126 Luckenbach Rd. San Antonio, TX 78251

A&A Concepts, LLC 1219 S. Zarzamora St. San Antonio, TX 78207

Averitt Brokerage Co., Inc. Mr. David Faubion 9999 Perrin Beitel, Suite B San Antonio, TX 78217

B. Catalani, Inc. 1500 S. Zarzamora, #326 San Antonio, TX 78207

Banana Distributing Company 1500 S. Zarzamora San Antonio, TX 78207

Coosemans Houston, Inc. 3124 Produce Row Houston, TX 77023

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Fresh Farm Direct, LLC 106 Adams St., Suite 2A Monte Vista, CLO 81144

Gonzalez Mexican Produce 2501 W. Military Hwy., A-23 McAllen, TX 78503

Harllee Packing, Inc. P.O. Box 8 Palmetto, FL 34220

Henry Avocado Corp. P.O. Box 300867 Escondidio, CA 92030-0867

Kitchen Pride P.O. Box 585 Gonzales, TX 78629

Le Best Banana Supply Co. P.O. Box 295 Hidalgo, TX 78557

M&P Logistics LP 1500 S. Zarzamora, #308 San Antonio, TX 78207

Maxim Egg Farms P.O. BOx 200805 Dallas, TX 75320-0805

Rio Bravo Produce 1006 S. Cesar Chavez Edinburg, TX 78542

Slankard Produce Co., Inc. 1500 S. Zarzamora San Antonio, TX 78207

Sunriver Sales P.O. Box 2738 Visalia, CA 93279

Touchstone & Associates 1500 S. Zarzamora St., #205 San Antonio, TX 78207

Willson Davis Company 1500 S. Zarzamora San Antonio, TX 78207

Robert E. Goldman 1 East Broward Blvd. Ste. 700 Fort Lauderdale, FL 33301

Tijerina & Sons, LLC c/o Zachary B. Aoki Thurman & Phillips, P.C. 8000 IH-10 West, Suite 1000 San Antonio, TX 78230 David G. Aelvoet Linebarger Gogan Blair 711 Navarro, Suite 300 San Antonio, TX 78205 Flatiron Capital c/o Robert L. Barrows 800 Broadway San Antonio, TX 78215
General Electric Capital Corp, NMHG Financial Services, Inc. c/o William H. Daniel McGinnis, Lochridge & Kilgore 600 Congress Ave., Ste. 2100 Austin, X 78701

Market Dispatch Service, Inc. c/o Celinda Baez Guerra Flume Law Firm, LLP 1020 N.E. Loop 410, Ste. 200 San Antonio, TX 78209 Muller Trading c/o Bruce W. Akerly Cantey Hanger LLP 1999 Bryan St., Suite 3300 Dallas, TX 75201
Divine Ripe, Rio Queen Citrus, Eco-Farms Sales, Garguilo, Inc. c/o Michael J. Black Burns & Black 750 Rittiman Road San Antonio, TX 78209 Steven E. Nurenberg Meuers Law Firm 5395 Park Centra Court Naples, FL 34109

Paul T. Curl/ Diana M. Geis Curl & Stahl, P.C. 700 N. St. Marys Street, Suite 1930 San Antonio, TX 78205 Wilson Davis Co. c/o Paul D. Barkhurst Barkhurst & Hinojosa, PC 110 Broadway, Suite 350 San Antonio, TX 78205
W. Scott Jenson c/o Elliott S. Cappuccio/Randall Pulman/Leslie S. Hyman Pulman Cappuccio Pullen & Benson 2161 NW Military Hwy., Suite 400 San Antonio, TX 78213

PACCAR Financial Corp. c/o Robert J. Reagan Reagan McLain Lee & Hatch, LLP 6060 North Central Expy., Ste. 690 Dallas, TX 75206 Harllee Packing, Inc. c/o Chris S. Tillmanns Bracewell & Giuliani, LLP 711 Louisiana Street, Ste. 2300 Houston, TX 77002-2770

Divine Ripe, LLC c/o John Kurt Stephen Cardenas & Stephen 100 South Bicentennial McAllen, TX 78501

Daimler Trust c/o Stephen G. Wilcox Bassel & Wilcox P.O. Box 11509 Fort Worth, TX 76110-0509

Harllee Packing, Inc. c/o Jake Blanchard Fowler White Boggs P.A. 501 E. Kennedy Blvd., Ste. 1700 Tampa, FL 33602 Jason A. Starks Assistant Attorney General P.O. Box 12548 Austin, TX 78711-2548

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Key Equipment Finance c/o Mark W. Stout Padfield & Stout, LLP 777 Main Street, Suite 1920 Fort Worth, TX 76102

Guadalupe County c/o Lee Gordon McCreary, Veselka, Bragg & Allen P.O. Box 1269 Round Rock, Texas 78680