Hearing Date and Time: January 13, 2003 at 10:00 a.m.

Objection Deadline: January 6, 2003

DAVI S, SAPERSTEI N & SALOMON, P.C.
375 Cedar Lane
Teaneck, New Jersey 07666
Telephone: (201) 907-5000
Facsimile: (201) 692-0444

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEW JERSEY
____________________________________
:
In re :
:
HPG INTERNATIONAL, INC. : Chapter 11
: Case No.: 01-64138 (KCF)
: Jointly Administered
____________________________________:


MOTION FOR RELIEF FROM AUTOMATIC STAY

Hector Valentin (Valentin), by counsel, Davis, Saperstein & Salomon, P.C.,
hereby move before the court for an Order Terminating, Annulling, Modifying or
Conditioning the Automatic Stay of 11 U.S.C. 362(d) for the purpose of permitting the
Law Division of Passaic County Superior Court, New Jersey, to proceed to adjudicate the
post-petition personal injury action filed by Valentin against Lansing Lathe Company,
S&S Machinery Corporation, Kalex Chemical Products, Inc., HPG International, Inc.,
E.C. Electroplating, Inc. under Docket No.: PAS-L-3460-02 (the Pending State Court
Action) and as grounds, respectfully state as follows:




Jurisdiction

1. This Court has jurisdiction to consider this Motion pursuant to 28 U.S.C. 157
and 1334. This matter is a core proceeding pursuant to 28 U.S.C. 157(b). Venue is
proper before this Court pursuant to 28 U.S.C. 1408 and 1409.
2. This motion is brought pursuant to 11 U.S.C. 362(d) and Federal Rules of
Bankruptcy Procedure 4001 and 9014.

Facts

3. Hector Valentin resides at 230 President Street, 2
nd
Floor, Passaic, New Jersey.

4. On November 17, 2000, the plaintiff was an employee of E.C. Electroplating, Inc.
and a machine operator for the employers metal lathe machine, identified as a Lansing
G.24 lathe. On the date of the accident, the plaintiff was operating the machine for only
a couple of days when his shirt became entangled in the unguarded moving parts of the
machine, thereby resulting in massive facial and head trauma. There were no interlocks,
guards or mechanisms in place to de-energize the machine in the event of an emergency
and the stop button was out of reach by the plaintiff.
5. As a direct and proximate result of the injuries suffered by Valentin, an action
was commenced in the Passaic County Superior Court of the State of New Jersey for
personal injury damages, on June 27, 2002 against the defendants, Lansing Lathe
Company, S&S Machinery Corporation, Kalex Chemical Products, Inc., HPG
International, Inc., E.C. Electroplating, Inc. under Docket No.: PAS-L-3460-02, ABC
Entity 1-5 (fictitious) and XYZ Entity 1-5 (fictitious). An Amended Complaint was filed
on July 25, 2002 and a Second Amended Complaint was filed on November 13, 2002,
naming C.M.G. SRL-Costruzioni Meccaniche Gornati as a viable
defendant/manufacturer in this products liability action. Jurisdiction and venue exist and
are appropriate in that Court. The parties engaged in initial discovery in the Pending
State Court Action until such time that the parties were informed of the Bankruptcy Stay.
6. The Debtor filed its voluntary petition for relief in this Court under Chapter 11 of
Title 11 of the United States Code on December 18, 2001.
7. Valentin is informed and believes, and upon such information and belief, that the
entire exposure of Debtor in the Pending State Court Action is covered by a policy of
insurance as a corporate conglomerate, through Royal Sun America/Alliance.
Additionally, Valentin is informed and believes, and upon such information and belief,
alleges, that costs attributable to the defense of the Debtor in the Pending State Court
Action are being, and have been, defrayed by the Debtors insurance carrier.

Argument

8. Under section 362(d)(1) of the Bankruptcy Code, the Court may modify the stay
for cause. 11 U.S.C. 362(d)(1).
9. The Second Circuit has enumerated the following factors to be considered in
determining if cause exists to modify the stay:
(1) whether relief would result in a partial or complete resolution of the issues; (2)
lack of any connection with or interference with the bankruptcy case; (3) whether the
other proceeding involves the debtor as a fiduciary; (4) whether a specialized tribunal
with the necessary expertise has been established to hear the cause of action; (5) whether
the debtors insurer has assumed full responsibility for defending it; (6) whether the
action primarily involves third parties; (7) whether litigation in another forum would
prejudice the interest of other creditors; (8) whether the judgment claim arising from the
other action is subject to equitable subordination; (9) whether movants success in the
other proceeding would result in judicial lien avoidable by the debtor; (10) the interests of
judicial economy and the expeditious and economical resolution of litigation; (11)
whether the parties are ready for trial in other proceeding; and (12) impact of the stay on
the parties and balance of harms. Sonnax Industries, Inc. v. Tri Component Products
Corp. (In Re Sonnax Industries, Inc.), 907 F.2d 1280, 1285 (2d Cir. 1990). Not all of
the factors will be relevant in every case. Mazzeo v. Lenhart (In re Mazzeo), 167 F.3d
139, 142-143 (2d Cir. 1999). Additionally, each element does not need to be accorded
equal weight. In re Keene Corp., 171 B.R. 180, 183 (Bankr. S.D.N.Y. 1994). See also,
In re New York Medical Group, P.C., 265 B.R. 408, 413 (Bankr. S.D.N.Y. 2001).
10. In this case, the majority of the elements weigh in favor of lifting the stay:

Element 1. Relief would result in a complete resolution of the
issues in that Valentins claim against the Debtor would be
liquidated.

Element 2. Since this is a case for damages arising from
personal injury under New Jersey law, it lacks any connection with
and will not interfere with the bankruptcy case.

Element 5. Valentin has been informed in the Pending State Court
Action that the Debtors insurer will most likely resume
responsibility for defending the action.
1
By virtue of the insurance
coverage, a modification or termination of the automatic stay to
permit the Pending State Court Action to proceed to judgment and
collection against the insurer would have no impact on the
bankruptcy estate. The insurance proceeds necessary to pay the
claim are not the property of the estate and the Debtor does not

1
Even if the Debtors insurance were not covering the defense costs of the Pending State Court Action, the
Debtor would have to defend the action (either in this court or in the Court in New Jersey) to determine the
claim amount because, as discussed below, Valentins claim amount cannot be estimated. Accordingly,
litigation expenses have been held insufficient reason to deny a motion fore relief from the stay. In re Keen
Corp., 171 B.R. 180, 185 (litigation costs do not constitute prejudice requiring denial of motion for relief
from the stay); In re Anton, 145 B.R. 767, 770 (Bankr. E.D.N.Y. 1992) (cost of defending litigation does
not preclude relief from the stay); In re Rabin, 53 B.R. 529, 532 (Bankr. D.N.J. 1985) ([i]t is clear that
movants claim will have to be liquidated either in state court or the bankruptcy court. In either instance,
the debtor will have to defend that action).
have any equity in such insurance proceeds. See, In re New York
Medical Group, 265 B.R. 408, 415 (collecting a judgment from
available insurers will not prejudice the estate); Elliot v.
Hardison, 25 B.R. 305, 308 (E.D. Va. 1982) (affirming bankruptcy
court order which allowed enforcement of any judgment to the
extent of insurance coverage, is which debtor admitted he had no
equity and no property interest). Accordingly, Valentin also
requests that the stay be lifted to collect any judgment against the
Debtors insurance carrier (or their successors).

Element 6. The action involves third parties, namely five other
viable defendants. As the injury took place in New Jersey, there
are also non-party witnesses as well as other evidence in New
Jersey.

Element 7. The Pending State Court Action will not prejudice the
interests of other creditors.

Element 8. Any judgment arising from the Pending State Court
Action will not be subject to equitable subordination.

Element 9. Any judgment arising from the Pending State Court
Action will not result in a judicial lien avoidable by the Debtor.

Element 10. The interests of judicial economy and expeditious and
economical resolution of the litigation lie in allowing the action to
proceed in New Jersey rather than forcing Valentin to proceed in
two separate actions. See, e.g. In re Anton, 145 B.R. 767, 770
([j]f the stay is not lifted, Movants will have to try the same facts
twice, once against the other defendants in the District Court and a
second time against the Debtor in the Bankruptcy Court.
Multiplicity of suits involving unnecessary time and expense on
the part of Movants should be avoided).

Element 12. The balance of harms is greater to Valentin who has
no adequate remedy or protection to redress his injuries except to
proceed in the pending tort action against those alleged to be liable
for such injuries. See, Jessie v. Honosky (In re Honosky), 6 B.R.
667 (Bankr. S.D. W.V. 1980) (were this Court not to lift the stay
to permit the plaintiff to proceed against the Debtor, she would be
effectively precluded from any recovery for her alleged injuries).

11. Moreover, pursuant to Section 157(b)(2)(O) of Title 28, personal injury tort
claims are specifically excluded from the list of core proceedings in which bankruptcy
courts can enter final judgments and orders. Indeed, bankruptcy courts cannot liquidate
or estimate contingent or unliquidated damages in personal injury torts or wrongful death
claims. In re C & G Excavating, Inc., 217 B.R. 64 (Bankr. E.D. Pa. 1998). Valentin has
demanded a jury trial in the Pending State Court Action and does not consent to a jury
trial in this Court.
Conclusion
12. Because there are no novel issues of law presented herein, Valentin respectfully
requests that the Court waive the requirement that Valentin file a memorandum in
support of this Motion.
13. No previous Motion for relief sought in this Motion has been made to this or any
other Court.
WHEREFORE, Valentin respectfully requests that the Court enter an Order:
1. Terminating or modifying the automatic stay pursuant to 11 U.S.C. 362 to
permit the Passaic County Superior Court of the State of New Jersey:
a. to adjudicate to a final conclusion the personal injury action before it in
Docket No.: PAS-L-3460-02;
b. to determine liability, if any, of Debtor, for any injuries suffered by
Valentin;
c. to liquidate the amount, if any, determined to be owed by Debtor (or its
insurers) to compensate fairly Valentin for such injuries as have been
suffered by him and obtain a judgment for that amount;
2. Permitting execution on any judgment awarded in the Pending State Court Action
against Debtors insurers or their successors; and
3. Granting such other and further relief as may be just and proper.
Respectfully submitted,

DAVI S, SAPERSTEI N & SALOMON, P.C.


_____________________________________
By: Marc C. Saperstein (MS 5528)

Counsel for the plaintiff, Hector Valentin
375 Cedar Lane
Teaneck, New Jersey 07666
Telephone: (201) 907-5000
Facsimile: (201) 692-0444

December 3, 2002






























Hearing Date and Time: January 13, 2003 at 10:00 a.m.
Objection Deadline: January 6, 2003



DAVI S, SAPERSTEI N & SALOMON, P.C.
375 Cedar Lane
Teaneck, New Jersey 07666
Telephone: (201) 907-5000
Facsimile: (201) 692-0444

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEW JERSEY
____________________________________
:
In re :
:
HPG INTERNATIONAL, INC. : Chapter 11
: Case No.: 01-64138 (KCF)
: Jointly Administered
____________________________________:


NOTICE OF HEARING ON MOTION OF HECTOR VALENTIN FOR AN
ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY PURSUANT TO
SECTION 362(D) OF THE BANKRUPTCY CODE

PLEASE TAKE NOTI CE that a Motion, dated December 3, 2002 (Motion), of
Hector Valentin, for an Order, pursuant to Section 362(d) of the Bankruptcy Code and
Federal Rule of Bankruptcy Procedure 6004, granting relief from the automatic stay to
allow Valentin to continue his post-petition personal injury action to determine the
liability, if any, of HPG International, Inc. (the Debtor) for injuries suffered by
Valentin, liquidate any amount determined to be owed by the Debtor to Valentin, obtain a
judgment for any such amount and permit execution on any such judgment against
Debtors insurance carriers or their successors, shall be considered at a hearing to be held
before The Honorable Kathryn C. Ferguson, United States Bankruptcy Judge, Third
Floor, of the United States Bankruptcy Court for the District of New Jersey, 402 East
State Street, Trenton, New Jersey 08608 (the Bankruptcy Court), on January 13, 2003
at 10:00 a.m. (Easter Standard Time), or as soon thereafter as counsel may be heard;
PLEASE TAKE FURTHER NOTI CE that responses or objections, if any, to the
relief requested in the Motion, must be in writing, conform to the Federal Rule of Civil
Procedure 83, the Federal Rules of Bankruptcy Procedure 5005(a)(2), 9011, 9029 and
District of New Jersey Local Bankruptcy Rules 5005-1 and 1001-1, and be filed with the
Bankruptcy Court electronically in accordance with the General Order (General Order
and the Users Manual for the Electronic Case Filing System can be found at
www.njb.uscourts.gov/ecf/, the official website for the United States Bankruptcy Court
for the District of New Jersey), by registered users of the Bankruptcy Courts case filing
system, and by all other parties in interest, on a 3.5 inch disk, preferably in Portable
Document Format (PDF), WordPerfect or any other Windows-based word processing
format (with a hard copy delivered directly to Chambers) and shall be served in
accordance with the General Order and upon the Debtor through their bankruptcy
counsel, Sam Della Fera, Esq., of Gibbons, Del Deo, Dolan, Griffinger & Vecchione,
P.C., One Riverfront Plaza, Newark, New Jersey 07102-5496; and the following
interested parties:
Office of the United States Trustee
Martha Hildebrandt, Esq.
One Newark Center
21
ST
Floor
Newark, NJ 07102

Wilentz, Goldman & Spitzer P.A.
Eric W. Sleeper, Esq.
Joseph R. Zapata, Jr., Esq.
90 Woodbridge Center Drive
Suite 900 Box 10
Woodbridge, NJ 07095-0958
Counsel for the Official Committee of Unsecured Creditors

Duane Morris, LLP
William S. Katchen, Esq.
744 Broad Street
Suite 1200
Newark, NJ 07102-3889
Co-Counsel for Congress Financial Corp.

Otterbourg, Steindler, Houston & Rosen
Daniel Fiorillo, Esq.
230 Park Avenue
New York, NY 10169
Counsel for Congress Financial

Ravin, Greenberg & Marks
Morris S. Bauer, Esq.
101 Eisenhower Parkway
Roseland, NJ 07068
Co-Counsel for Johns Manville International, Inc.

Holme, Roberts & Owen, LLP.
Lawrence Bass, Esq.
1700 Lincoln Street, Suite 4100
Denver, CO 80203
Co-Counsel for Johns Manville International, Inc.

Farr Burke Gambacorta & Wright
William Wright, Esq.
211 Benigno Boulevard
P.O. Box 788
Bellmawr, NJ 08099-0788
Counsel for Tioxides America

Saiber, Schlesinger, Satz & Goldstein, LLC
Daniel N. DeLuca, Esq.
One Gateway Center
13
TH
Floor
Newark, NJ 07102-5311
Counsel for Creanova, Inc.

Pension Benefit Guaranty Corp.
Kenneth J. Cooper, Esq.
1200 K Street, N.W.
Washington, DC 20005

Pepper Hamilton, LLP
J. Gregg Miller, Esq.
3000 Two Logan Square
Eighteenth and Arch Streets
Philadelphia, PA 19103-2799

Pepper Hamilton, LLP
Kenneth H. Zucker, Esq.
400 Berwyn Park
899 Cassatt Road
Berwyn, PA 10312-1183

Shughart, Thomson & Kilroy, P.C.
Robert S. Goldstein, Esq.
1050 17
th
Street
Suite 2300
Denver, CO 80265

Jonathan A. Spohrer, Esq.
400 Third Avenue
Suite 310
Kingston, PA 18704
Attorneys for Mountaintop Area
Joint Sanitary Authority

Herrick Feinstein LLP
Richard M. Meth, Esq.
2 Penn Plaza
Newark, NJ 07105-2245
Attorneys for Sears Roebuck & Co.

Norris, McLaughlin & Marcus
Gary N. Marks, Esq.
721 Rt 202-206
Box 1018
Somerville, NJ 08876
Counsel for Manya Corp.

Riker, Danzig, Scherer,
Hyland & Perretti, LLP
Headquarters Plaza
One Speedwell Avenue
PO Box 1981
Morristown, NJ 07962-1981
Counsel for Benton Community School District

Sterns & Weinroth
Valerie Hamilton, Esq.
50 W. State Street, Suite 1400
PO Box 1298
Trenton, NJ 08607-1298
Counsel for James Tremoulis, Creditor
Riker, Danzig, Scherer, Hyland & Perretti, LLP
Jeffrey B. Wagenbach, Esq.
Headquarters Plaza
One Speedwell Avenue
P.O. Box 1981
Morristown, NU 07962-1981
Counsel for E.E. Electroplating, Inc.

McDermott & McGee, LLP
Thomas A. Wester, Esq.
Counsellors at Law
75 Main Street
P.O. Box 192
Millburn, NJ 07041-0192
Counsel for S&S Machinery Corporation;

and any person, or counsel if retained, appointed pursuant to 28 U.S.C. 1104, so
as to be actually received by no later than 5:00 p.m. (Easter Standard Time), on
December 17, 2002.
Respectfully submitted,

DAVI S, SAPERSTEI N & SALOMON, P.C.


_____________________________________
By: Marc C. Saperstein (MS 5528)

Counsel for the plaintiff, Hector Valentin
375 Cedar Lane
Teaneck, New Jersey 07666
Telephone: (201) 907-5000
Facsimile: (201) 692-0444

December 3, 2002




DAVI S, SAPERSTEI N & SALOMON, P.C.
375 Cedar Lane
Teaneck, New Jersey 07666
Telephone: (201) 907-5000
Facsimile: (201) 692-0444

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEW JERSEY
____________________________________
:
In re :
:
HPG INTERNATIONAL, INC. : Chapter 11
: Case No.: 01-64138 (KCF)
: Jointly Administered
____________________________________:


ORDER GRANTING RELIEF FORM THE AUTOMATIC STAY PURSUANT TO
SECTION 362(D) OF THE BANKRUPTCY CODE

Upon consideration of the Motion for Relief from the Automatic Stay, dated
December 3, 2002 (Motion), of Hector Valentin (Valentin), for an Order, pursuant
to section 362(d) of the Bankruptcy Code and Federal Rule of Bankruptcy Procedure
6004, granting relief from the automatic stay to allow Valentin to continue his pre-
petition personal injury action to determine the liability if any, of HPG International, Inc.
(the Debtor) for injuries suffered by Valentin, liquidate any amount determined to be
owed by the Debtor to Valentin, obtain a judgment for any such amount and permit
execution on any such judgment against the Debtors insurance carriers or their
successors; and it further appearing that the Court has jurisdiction to consider the Motion;
and it appearing that due notice of the Motion has been given and no further notice need
be given; and upon the proceedings before the Court and good and sufficient cause
appearing, it is hereby;
ORDERED that the Motion is granted and the automatic stay is lifted to permit
the action pending in the Passaic County Superior Court, New Jersey, Docket No.: PAS-
L-3460-02, to continue to determine the liability, if any, of the Debtor for the injuries
alleged by Valentin, to liquidate the amount, if any, determined to be owed by the Debtor
to Valentin and to obtain a judgment for any such amount;
I T I S FURTHER ORDERED that the automatic stay is lifted to permit Valentin
to execute on any such judgment against the Debtors insurers or their successors.


____________________________________
The Honorable Kathryn C. Ferguson
United States Bankruptcy Judge

Dated: January _____, 2003











DAVI S, SAPERSTEI N & SALOMON, P.C.
375 Cedar Lane
Teaneck, New Jersey 07666
Telephone: (201) 907-5000
Facsimile: (201) 692-0444

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEW JERSEY
____________________________________
:
In re :
:
HPG INTERNATIONAL, INC. : Chapter 11
: Case No.: 01-64138 (KCF)
: Jointly Administered
____________________________________:

CERTIFICATION OF SERVICE


I, Marc C. Saperstein, do hereby certify as follows:
1. I am attorney at law of the State of New Jersey as well as the State of New
York, and licensed in the Eastern District. I am also a shareholder in the law firm
of Davis, Saperstein, & Salomon, P.C., counsel for the injured plaintiff, Hector
Valentin in the matter of Hector Valentin v. S&S Machinery, et al., Docket No.
PAS-L-3460-02.
2. I submit this Certification of Service in support of plaintiffs motion For
Relief from the Automatic Stay of the Bankruptcy Court.
3. The following interested parties and/or individuals were served with a
copy of the Motion for Relief from the Automatic Stay via certified mail return
receipt requested:




Office of the United States Trustee
Martha Hildebrandt, Esq.
One Newark Center
21
ST
Floor
Newark, NJ 07102

Wilentz, Goldman & Spitzer P.A.
Eric W. Sleeper, Esq.
Joseph R. Zapata, Jr., Esq.
90 Woodbridge Center Drive
Suite 900 Box 10
Woodbridge, NJ 07095-0958
Counsel for the Official Committee of Unsecured Creditors

Duane Morris, LLP
William S. Katchen, Esq.
744 Broad Street
Suite 1200
Newark, NJ 07102-3889
Co-Counsel for Congress Financial Corp.

Otterbourg, Steindler, Houston & Rosen
Daniel Fiorillo, Esq.
230 Park Avenue
New York, NY 10169
Counsel for Congress Financial

Ravin, Greenberg & Marks
Morris S. Bauer, Esq.
101 Eisenhower Parkway
Roseland, NJ 07068
Co-Counsel for Johns Manville International, Inc.

Holme, Roberts & Owen, LLP.
Lawrence Bass, Esq.
1700 Lincoln Street, Suite 4100
Denver, CO 80203
Co-Counsel for Johns Manville International, Inc.

Farr Burke Gambacorta & Wright
William Wright, Esq.
211 Benigno Boulevard
P.O. Box 788
Bellmawr, NJ 08099-0788
Counsel for Tioxides America

Saiber Schlesinger Satz & Goldstein, LLC
Daniel N. DeLuca, Esq.
One Gateway Center
13
TH
Floor
Newark, NJ 07102-5311
Counsel for Creanova, Inc.

Pension Benefit Guaranty Corp.
Kenneth J. Cooper, Esq.
1200 K Street, N.W.
Washington, DC 20005

Pepper Hamilton, LLP
J. Gregg Miller, Esq.
3000 Two Logan Square
Eighteenth and Arch Streets
Philadelphia, PA 19103-2799

Pepper Hamilton, LLP
Kenneth H. Zucker, Esq.
400 Berwyn Park
899 Cassatt Road
Berwyn, PA 10312-1183

Shughart Thomson & Kilroy, P.C.
Robert S. Goldstein, Esq.
1050 17
th
Street
Suite 2300
Denver, CO 80265

Jonathan A. Spohrer, Esq.
400 Third Avenue
Suite 310
Kingston, PA 18704
Attorneys for Mountaintop Area
Joint Sanitary Authority

Herrick Feinstein LLP
Richard M. Meth, Esq.
2 Penn Plaza
Newark, NJ 07105-2245
Attorneys for Sears Roebuck & Co.

Norris, McLaughlin & Marcus
Gary N. Marks, Esq.
721 Rt 202-206
Box 1018
Somerville, NJ 08876
Counsel for Manya Corp.

Riker, Danzig, Scherer,
Hyland & Perretti, LLP
Headquarters Plaza
One Speedwell Avenue
PO Box 1981
Morristown, NJ 07962-1981
Counsel for Benton Community School District

Sterns & Weinroth
Valerie Hamilton, Esq.
50 W. State Street, Suite 1400
PO Box 1298
Trenton, NJ 08607-1298
Counsel for James Tremoulis, Creditor;
Riker, Danzig, Scherer, Hyland & Perretti, LLP
Jeffrey B. Wagenbach, Esq.
Headquarters Plaza
One Speedwell Avenue
P.O. Box 1981
Morristown, NU 07962-1981
Counsel for E.E. Electroplating, Inc.

McDermott & McGee, LLP
Thomas A. Wester, Esq.
Counsellors at Law
75 Main Street
P.O. Box 192
Millburn, NJ 07041-0192
Counsel for S&S Machinery Corporation





I certify that the foregoing statements made by me are true. I am aware
that if any of the foregoing statements made by me are willfully false, that I am
subject to punishment.

Respectfully submitted,

DAVI S, SAPERSTEI N & SALOMON, P.C.


_____________________________________
By: Marc C. Saperstein (MS 5528)

Counsel for the plaintiff, Hector Valentin
375 Cedar Lane
Teaneck, New Jersey 07666
Telephone: (201) 907-5000
Facsimile: (201) 692-0444

December 3, 2002