What process must a shcool district follow to collect property taxes from a bankrupt corporation (North American Car Corporation)? ACA 20-9-201, 20-10-2 13, 20-10-301, 20-10-101, 20-10-201. RESPONSE: File a claim with the bankruptcy court.

STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL JUSTICE BUILDING, LITTLE ROCK 72201 STEVE CLARK ATTORNEY GENERAL (501) 371-2007 OPINION NO. 86-346 May 30, 1986 .. The Honorable Bill Wylie - County Judge Calhoun County Courthouse Main Street (Highway 4) Hampton, AR 71744 Gentlemen: ! ·.1'.:~narrell W. DonaUson . ', . Superintendent · · · · Hampton Public Schools P.O. Box 628 Hampton, AR 71744 Pursuant to your request for information, I have found out the following with reference to the Chapter 11 reorganizational :bankruptcy filed by North American Car Corporation. As you . "'.know, North American Car Corporation filed for bankruptcy in · · Los Angeles, California, docket Number LA 842 3401 on December . ! I S, 1984. The last date for filing a proof of claim against the ·~. Corporation was June S, 1985, ~ccording to the Bankruptcy Clerk. There are literally thousands of claims pending against this Corporation and they are currently in the process of selling their property to pay (1) secured creditors; (2) administrative expenses of the bankruptcy and (3) debts accrued since bankruptcy was taken. The State of Arkansas, Department of Finance and Administration through its attorney, Ms. Ann Kell, filed a claim on behalf of the State of Arkansas Jor outstanding corporat'e franchise taxes in amount of $4700.00·for the year 1985. This claim. is different than that of ypur local school district's which is based on the county assessments for having railcars located in Calhoun County 100% of the time during any given year. It is my understanding that this is the factor on which the approximately 160,000.00 assessment, of which you speak, is based. I, of course, am statutorily mandated to represent state " The Honorable Bill Wylie and Mr. Darrell W. Donaldson page 2 officials and thus, cannot file a claim on behalf of either Calhoun County or the Hampton School District. That claim will have to be filed by your attorney, whom I currently understand to be Mr. Hamilton Singleton, Singleton and Foyil, 133 Washington Street, Camden, AR 71701-0763. I have requested the Los Angeles Bankruptcy Court f or an appropriate proof of claim form which may be completed and to be filed on your behalf by your attorney. The address of the Los Angeles Bankruptcy Court is: '".· Los Angeles Bankruptcy Court 312 North Spring, Room 906 Los Angeles, California-_ 90012 The claim form is attached. I have not contacted the attorneys for North American Car Corporation as it is possible they will object to the filing of a claim at this point. The crucial element in a Chapter 11 bankruptcy is the reorganization plan. Such plan will probably contain the instructions for filing a claim based on taxes owed. It is unknown whether such a plan has been confirmed in this case. Any time limits for filing a claim will be based on adoption of the plan. Also, it is my understanding that tax liability incurred after the plan is confirmed differs f rom that incurred before confirmation. Mr. Jim Hollis of the Little Rock Bankruptcy Office, phone 378-6053, will be happy to answer questions on specifics of Chapter 11 bankruptcies. I wish you luck in trying to obtain assets from this Corporation. General SC/RBF/mo cc: Mr. Hamilton Singleton Singleton and Foyil 133 Washington Street Camden, AR 71701-0763 -- •