Karen C. Bifferato (DE Bar No.

3279)
Marc J. Phillips (DE Bar No. 4445)
CONNOLLY BOVE LODGE & HUTZ LLP
The Nemours Building
1007 North Orange Street
P.O. Box 2207 (19899)
Wilmington, DE 19801
Telephone: 302-658-9141
Facsimile: 302-658-0380
Attorneys for Venmar CES, Inc.
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
In re:
Lehr Construction Corp.,
Debtor.
)
)
)
)
)
Chapter 11
Case No. 11-10723 (SHL)
MOTION OF VENMAR CES, INC. FOR ALLOWANCE AND
IMMEDIATE PAYMENT OF ADMINISTRATIVE EXPENSE
CLAIM PURSUANT TO 11 U.S.C. 503(B)(9)
Venmar CES, Inc. ("V enmar"), by and through its undersigned counsel, hereby moves
the Court for the entry of an order allowing and directing immediate payment of its
administrative expense claim pursuant to sections 507(a) and 503(b)(9) oftitle 11 of the United
States Code ("Bankruptcy Code"), and in support thereof, respectfully states as follows:
Jurisdiction and Venue
1. This Court has jurisdiction to hear and decide this Motion pursuant to 28 U.S.C.
157 and 1334. This matter is a core proceeding under 28 U.S.C. 157(b )(2). Venue is proper
before this Court pursuant to 28 U.S. C. 1408 and 1409. The statutory bases for the relief
requested herein are 11 U.S.C. 503(b) and 507(a).
Background
2. On February 21, 2011 ("Petition Date"), the above-captioned debtor ("Debtor")
filed a voluntary petition for relief under title 11 of the United States Code ("Bankruptcy Code").
3. The Debtor continues to operate its business and manage its affairs as debtor-in-
possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code.
4. Prior to the Petition Date, Venmar supplied commercial HV AC equipment to the
Debtor. During the twenty (20) days preceding the Petition Date, Venmar sold goods on credit
to the Debtor in the ordinary course of the Debtor's business for which Venmar has not been
paid. The goods received by the Debtor during the twenty days prior to the Petition Date have a
value of at least $218,500.08, and are more fully described in the invoice attached hereto as
Exhibit A (collectively, the "Goods"). Attached hereto as Exhibit B is a copy ofVenmar's proof
of delivery of the Goods to the Debtor.
5. The Debtor has not paid Venmar for the Goods delivered to the Debtor within 20
days of the Petition Date. As of the Petition Date, Venmar has a claim against the Debtor in the
total amount of at least $218,500.08 ("Claim").
Relief Requested
6. Venmar respectfully requests entry of an order (a) allowing Venmar an
administrative expense claim pursuant to section 503 (b )(9) of the Bankruptcy Code, and (b)
directing the Debtor to immediately pay the allowed administrative expense claim to Venmar.
7. Section 503(b)(9) of the Bankruptcy Code provides "[a]fter notice and a hearing,
there shall be allowed administrative expenses ... including the value of any goods received by
the debtor within 20 days before the date of commencement of a case under this title in which the
goods have been sold to the debtor in the ordinary course of such debtor's business." 11 U.S.C.
2
503(b )(9). Section 507(a)(2) of the Bankruptcy Code allows priority payment to administrative
expenses allowed under Section 503(b) of the Bankruptcy Code.
8. Here, there can be no dispute that Venmar sold the Goods to the Debtor in the
ordinary course of the Debtor's business. Furthermore, as demonstrated by the invoice and proof
of delivery attached as exhibits hereto, the Goods were received by the Debtor within twenty
(20) days before the Petition Date. Finally, the value of the Goods can be determined from the
agreed purchase prices set forth on Exhibit A.
9. In addition, the Court should require that the Debtor immediately pay the Claim to
Venmar. Section 503(b)(9) ofthe Bankruptcy Code is silent as to when section 503(b)(9)
administrative claims should be paid. Courts have found, however, that they have discretion to
require the immediate payment of such administrative claims. See, e.g., In re Global Home
Prods., LLC, Case No. 06-10340 (KG), 2006 WL 3791955, at *3 (Bankr. D. Del. Dec. 21, 2006).
In exercising this discretion, courts have weighed the prejudice to the debtor, the hardship to the
claimant and the potential detriment to other creditors. Id. at *12. A creditor that demonstrates a
need to receive payment qualifies for immediate payment of its administrative claim. I d. at * 1 0
(citingin re Continental Airlines, Inc., 146 B.R. 520,531 (Bankr. D. Del. 1992) (internal citation
omitted)).
10. In this case, the immediate payment of the Claim will not prejudice the Debtor or
other creditors. Although the Debtor does not currently have post-petition financing, there does
not appear to be a need for such financing, as the Debtor is seeking an orderly wind-down of its
business. See Declaration of Frederick Coffey Pursuant to Local Bankruptcy Rule 1007-2
[Docket No. 2] ("Coffey Decl."). The Debtor should have sufficient funds to pay the Claim, and
accordingly, will not be harmed by payment of the Claim. In addition, there is no reason for
3
V enmar to wait for payment on the Claim. V enmar needs and is entitled to payment on the
Claim now. If Venmar is not paid on the Claim immediately, it will file a mechanics' lien on the
Debtor's property where the Goods have been installed. A mechanics' lien will only further
complicate this matter and increase all parties' costs, which is unnecessary, given that Venmar is
entitled to payment in full on the Claim under section 503(b )(9) of the Bankruptcy Code.
11. Further, the Debtor intends to "continue its operations in chapter 11 with as little
disruption and loss of productivity as possible" and "maintain the confidence and support of its
clients, employees, sub-contractors, and vendors." See Coffey Decl. a t ~ 4. The best way to
provide for little disruption and to maintain the confidence and support of its sub-contractors and
vendors is to pay invoices as such invoices come due.
12. In addition, provision of the Goods to the Debtor required a significant outlay of
capital on the part of V enmar and any delay in receiving payment from its customers could have
an impact on V enmar' s ability to pay its suppliers. Therefore, the hardship to V enmar far
outweighs the prejudice to the Debtor or any potential detriment to other creditors.
13. Lastly, under section 1129(a)(9) of the Bankruptcy Code, the Debtor will
ultimately be required to pay the Claim in full in order to confirm a plan of reorganization. See
11 U.S.C. 1129(a)(9). In short, other creditors will ultimately not be harmed by the payment of
the Claim since it must be paid in any event. In light of these circumstances, the Court should
exercise its discretion and direct the immediate payment of the Claim to Venmar.
Reservation of Rights
14. Venmar expressly reserves its rights with respect to its reclamation claim, any
statutory liens that may apply, and any other claims it may have against the Debtor.
4
WHEREFORE, for all the foregoing reasons, Venmar respectfully requests entry of an
order, (i) allowing the Claim in the amount of$218,500.08 as an administrative expense claim
pursuant to sections 503(b )(9) and 507( a)(2) of the Bankruptcy Code, (ii) directing the Debtor to
immediately pay the Claim to Venmar, and (iii) granting Vemnar such other and further relief as
is just and appropriate.
Dated: March 7, 2011
#4221013vl
Karen C. Bifferato (DE o. 327
Marc J. Phillips (DE Bar No. 5180)
The Nemours Building
1007 North Orange Street
P.O. Box 2207 (19899)
Wilmington, DE 19801
Telephone: (302) 658-9141
Facsimile: (302) 658-0380
Attorneys for Venmar CES, Inc.
5
EXHIBIT A

1502 D Quebec Ave
Saskatoon, SK S7K 1V7
Phone ........ : 306-242-3663
Fax ........... : 306-242-3484
Bill to
Lehr Construction Corp
902 Broadway
NEW YORK, NY i 0010
us
Ship to
SKYLIFT
24 GREENPOINT AVENUE
BROOKLYN, NY 11222
us
Item number
PF01478701
Quantity : 1.00
500000000
PF01478702
Quantity : 1.00
500000000
Description
AC-3-1
Serial number : 00480551-C03830
5 years extended warranty on
compressors - Aston
AC-3-2
Serial number: 00480555-C03831
5 years extended warranty on
compressors - Aston
G.S.T, # R100903756
Q.S.T. # 12 0012 06587 TQ0001
Due date 03/12/2011
Remit To
Venmar CES Inc.
C/0 CES Group Inc
13200 Pioneer Trail, Suite 150
EDEN PRAIRIE, MN 55347
us
Invoice copy
Number ................. : INV009465
lnv. Date ................ : 02/10/2011
Page .................... : 1
Sales order .............. : S0014787
Order date .............. : 11/20/2010
Purchase order ......... : 154865
Yourref .................. : Google Chelsea Market
Salesperson ............. : NDucha
Terms ................... :NET 30
Customer account ...... : VENOOO 1 0253
Ordered Shipped Price Amount
Restock:
Freight:
Premiums:
1.00 1.00 106,865.04
1.00 1.00 660.00
1.00 1.00 107,715.04
1.00 1.00
0.00
2,600.00
0.00
660.00
106,865.04
660.00
107,715.04
660.00
Invoice total.: 218,500.08 USD
When payment before 02/20/2011, 1,194.00 USD is granted in cash discount.
EXHIBITB
17:52:08 02-24-2011 1 /2
19:26
./
WILTON TRAIJa, 00 18888983336
N0.900 DB3
BILL OF UIDIIIG
NON N!GOC:IABLE
flO'I' NEClOT!AlllE
I
4 .. -"'
, -
CAMION _, = 2LP275
'
I CONSIGNOR
Venmar CES inc. 1c.tovri1 S0014787 I 411 S
PATRICK LIZOTTE OU JEAN LUC 00\.ISSOT tiDE JOB
200 rue Carter
SKYLIFt

____________
BROOKlYN. !NY !!D.
11222 lns-so9-1SGQ
BROOKLYN
BROOKLYN
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.........

17:53:02 02-24-2011 2/2
CONNAISSEMENT ,,.,....J!PN
,_ ....
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BILL OF LADING
NOT NEGOTIABLE
::::
EXPEDITEUR I CONSIGNOR
No cpto.Elp6dltaurlconslgnor I DATE No r61. Expldllour I Conoigno< rl,., II do dionl
Venma.r CES inc.
acct. no. 9-fevr-11 S0014787 4116
PATRICK LIZOTTE OU JEAN LUC COUSSOT
#SO
1X1o1
#DE JOB
200 rue Carter T61.:(819l3992175 EXT. 287 ET 244
01
St-L.Sonard-d' Aston Qu.Sbec, CANADA, JOC 1MO
[><:
CONSIGNATAIRE (NOM & ADRESSE) CONSIGNEE (NAME & ADDRESS)
C>(
SKYLIFT

lX
EBOJEC! H!,ME IS
GOOGLE CHELSEA MARKET- 3RD FL
24 GREENPOINT AVENUE
GTI.
BROOKLYN
jNY Gil. Is 8QO 544 4188
11222
1718-609-1860
POINT D'ORIGINE I POINT OF ORIGIN St-Leonard-d' Aston
EN ROUTE I DESTINATION ANO BROOKLYN
BROOKLYN NY
Call 48 hours before delivery
!li:IABGEMEtii lil.!B llt.MIO!l
n
OTE Nornbre et 1)'116 de paquola Oooalplion doa Modile Tog PoldJ (LBS)

Monllllll FFWS DE TIWISPORT
Number nd typo cl p'ock- Portlculara of good Modo! Rate W&lgfll OK Amount FREIGHT CHANGES
1 S0014787.:0j UNITS INDOOR AC-3-1 /
A percevolr I
c
1 7 FAN (SECTION) 1800 z
Coll&ct >>>>>>>>>>
1 21 CONDENSING UNIT (SECTION) 1800 L-
Payor daven<:e I
I!
1 13 COIL SECTION (SECTION)
I
2000 L PREPAIP ANP CHARGE
1 A15041191 A520-2A-1 MAMAC PRS PRB 8" ALM. BAR '-7
Los fralo olllOnl 1 porcavoir
1 500007537 DUCT HUMIDITY SENSOR RH200A02J GREYSTONE L & molno d'avlt contralre I
2 A26000501 Fll.. TER DRIER EKP307S AI..CO

Freight c;hatgoa wiU be collecl
1 CUP COPPER CONNECTION KIT FOR CONDENSING UNIT.
<:::--
unless mmed prepaid
1 45 CONTROL BOX
?-
1 500001484 SENSOR t!-.
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THIRD
TOTAL I.BS.= 5600
nnvJ Frels de tatOUVrementlcolloctlon charo .:
\llfiJ\J 'W
#oe Palette(e)=
TOT ALP.: - $
/ A L'arrlv6e /Inbound .: $

Tronsporteur I carriO( I Consignee A\Hlolal Beyond.: .
I
Date --
Dater?
Date AutN>(pr"=ia.,.ll Olhero (speclty) .: . $

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TOTAl DES FAAIS I TOTAL CHARGES .: $
._....
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
In re:
Lehr Construction Corp.,
Debtor.
)
)
)
)
)
Chapter 11
Case No. 11-10723 (SHL)
ORDER GRANTING MOTION OF VENMAR CES, INC. FOR
ALLOWANCE AND IMMEDIATE PAYMENT OF ADMINISTRATIVE
EXPENSE CLAIM PURSUANT TO 11 U.S.C. 503{B){9)
Upon consideration ofthe Motion of Venmar CES, Inc. for Allowance and
Immediate Payment of Administrative Expense Claim Pursuant to II U.S. C. 503(b)(9)
("Motion"); and upon consideration of any and all objections and/or responses that were
filed in opposition to the Motion; and it appearing that due and proper notice of the Motion
has been given to all interested parties in this case; and after due deliberation and sufficient
cause appearing therefor;
IT IS HEREBY ORDERED THAT:
1. The Motion is granted.
2. Venmar CES, Inc. ("Venmar") 1s hereby deemed to have an allowed
administrative expense claim in the amount of $218,500.08 pursuant to section 503(b)(9) of
the Bankruptcy Code.
3. The above-captioned debtor is directed to pay V enmar the amount of
$218,500.08 within 10 days from the date ofthis Order.
Dated: __________ _
United States Bankruptcy Judge
#4223090vl
CERTIFICATE OF SERVICE
'aren C. Bifferato (
#4226105
Via Federal Express
United States Bankruptcy Court
Southern District ofNew York
The Honorable Judge Sean H. Lane
One Bowling Green, Room 708
New York, NY 1 0004
Via First Class U.S. Mail
Office of the United States Trustee
Susan Golden, Esq.
33 Whitehall Street
21st Floor
New York, NY 10004
Lawrence C. Gottlieb, Esq.
James A. Belder, Esq.
Lesley A. Kroupa, Esq.
CooleyLLP
1114 A venue of the Americas
New York, NY 10036
#4225249vl