IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: MERVYN'S HOLDINGS, LLC, et al., Debtors.

) ) ) ) ) Chapter 11 Case No. 08-11586 (KG) Jointly Administered Re: Docket No. 3933
Objection Deadline: 9/17/09 at 4:00 p.m. (ET) Hearing Date: 9/24/09 at 3:00 p.m. (ET)

RESPONSE OF JEOFFREY L. BURTCH, CHAPTER 7 TRUSTEE OF DAN RIVER HOLDINGS LLC, ET AL., TO DEBTORS SIXTH OMNIBUS OBJECTION (SUBSTANTIVE) TO CERTAIN (A) OVERSTATED AND (B) NO BASIS CLAIMS AND MOTION TO REDUCE OR DISALLOW SUCH AMOUNTS Jeoffrey L. Burtch, Chapter 7 Trustee (the Trustee) of Dan River Holdings LLC, et al. (collectively, Dan River)1, objects to the Debtors' Sixth Omnibus Objection (Substantive) to Certain (A) Overstated and (B) No Basis Claims and Motion to Reduce or Disallow Such Claims (the "Omnibus Objection") and, in support thereof, states as follows: Background 1. On or about July 29, 2008 (the "Petition Date"), the above-captioned debtors

("Debtors") filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code"). 2. Dan River previously sold home fashion products such as comforters, bed sheets,

and pillow cases, and sourced all of its manufacturing overseas, primarily in Pakistan, India and China.

The Trustee was appointed as interim trustee for the following cases and now serves as Trustee pursuant to Section 702(d) of the Bankruptcy Code: Dan River Holdings LLC, Case No. 08-10726(BLS); Dan River, Inc., Case No. 08-10727 (BLS); Dan River Factory Stores, Inc., Case No. 08-10728 (BLS); Dan River International Ltd., Case No. 08-10729 (BLS); and The Bibb Company LLC, Case No. 0810730 (BLS).

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3.

On April 20, 2008, Dan River filed voluntary petitions for relief under Chapter 11

of title 11 of the United States Bankruptcy Code. On April 22, 2008, an Order was entered jointly administering the Dan River cases under Case No. 08-10726(BLS). Effective December 17, 2008, the Court converted the Cases to cases under Chapter 7 of the Bankruptcy Code. 4. On December 17, 2008, Jeoffrey L. Burtch was appointed as Chapter 7 interim

trustee in the Dan River cases and now serves as the Trustee for the Dan River cases pursuant to Section 702(d) of the Bankruptcy Code. 5. Dan River has asserted an unsecured, non-priority claim (Claim Number 346,

attached hereto as Exhibit A) against the Debtors in the amount of $88,084.60 (the Dan River Claim). The invoices supporting the Dan River Claims were annexed to the proof of claim filed in this case. The Dan River Claim relates to open and unpaid invoices for home fashion products purchased by and delivered to the Debtors prior to the Petition Date. The Dan River Claim also includes claims for fifteen (15) unauthorized deductions apparently taken by the Debtors credit department. 6. Through their Omnibus Objection, the Debtors have objected to the Dan River

Claim on the grounds that the Dan River Claim is, according to their books and records, overstated. The Omnibus Objection seeks an order reducing the Dan River Claim from

$88,084.60 to $0.00. Trustees Response to the Omnibus Objection 7. The Trustee objects to the proposed reduction of the Dan River Claim. Rule

300l(f) of the Federal Rules of Bankruptcy Procedure ("Bankruptcy Rules") provides that a proof of claim filed in accordance with the Bankruptcy Rules shall constitute prima facie evidence of the validity and the amount of the claim. Fed. R. Bankr. P. 300l(f); In re Planet Hollywood

International, 274 B.R. 391, 394 (D. Del. 2001). "The interposition of an objection does not deprive the proof of claim of presumptive validity unless the objection is supported by substantial evidence." See In Re Hemingway Trans., Inc., 993 F.2d 915, 925 (1st Cir. 1993). To overcome this presumed validity, the Debtors must present evidence that, if believed, "would refute at least one of the allegations that is essential to the claim's legal sufficiency." See In re
Allegheny Int'l Inc., 954 F.2d 167, 173 (3d Cir. 1992).

8.

In the alternative, Dan River is listed as a general unsecured creditor in the

amounts of $77,870.05 and $31.99 in Schedule F of the Debtors Schedules of Assets and Liabilities. [Docket No. 692]. Pursuant to Bankruptcy Rule 3003(b), the schedule of liabilities constitutes prima facie evidence of the validity and amount of the claims of creditors. 9. The Debtors have not provided any evidence or alleged any facts to refute any of

the elements necessary to overcome the presumed validity of the Dan River Claim. The Debtors must provide more evidence than their mere contention in the Omnibus Objection that the amount should be reduced. Accordingly, the Debtors have failed to provide any facts in support of any desired reduction, and cannot satisfy the Debtors burden to overcome the prima facie validity of the Dan River Claim. [Remainder of Page Intentionally Left Blank]

WHEREFORE, the Trustee respectfully requests that the Court enter an order denying the Debtors objection with regard to the Dan River Claim, allowing the Dan River Claim in its entirety, and granting any such further relief as the Court may deem just and proper.

Date: September 17, 2009

COOCH AND TAYLOR

/s/ R. Grant Dick IV____ R. Grant Dick IV (#5123) 1000 West Street, 10th Floor The Brandywine Building Wilmington, DE 19801 Telephone: 302.984.3800 Facsimile: 302.984.3939 Email: gdick@coochtaylor.com Counsel for Jeoffrey L. Burtch, Chapter 7 Trustee of the estates of Dan River holdings LLC, et al.

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: MERVYN'S HOLDINGS, LLC, et al., Debtors. ) ) ) ) ) Chapter 11 Case No. 08-11586 (KG) Jointly Administered

CERTIFICATE OF SERVICE I, R. Grant Dick IV, Esquire, certify that on September 17, 2009, I served the attached documents upon the parties on the attached service list in the manner indicated.

Date: September 17, 2009

COOCH AND TAYLOR

/s/ R. Grant Dick R. Grant Dick IV (#5123) 1000 West Street, 10th Floor The Brandywine Building Wilmington, DE 19801 Telephone: 302.984.3800 Facsimile: 302.984.3939 Email: gdick@coochtaylor.com Counsel for Jeoffrey L. Burtch, Chapter 7 Trustee of the estates of Dan River holdings LLC, et al.

SERVICE LIST Katisha D. Fortune Richards Layton & Finger, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 (Attorneys for Debtors and Debtors in Possession) Howard S. Beltzer Wendy S. Walker Morgan, Lewis & Bockius LLP 101 Park Avenue New York, NY 10178-0060 (Attorneys for Debtors and Debtors in Possession)