CIT Group Inc. v. Tyco Intl Ltd. (In re CIT Group Inc.)
Dec
21
2011
Ruling
Claim based on rights under tax agreement with debtor's parent in corporate restructuring including stock issuance did not arise form the sale of a security and was not subject to subordination.
Procedural posture
Pending were cross-motions for summary judgment filed by plaintiff, the reorganized debtor, and by defendant, its former indirect parent company. Debtor argued that a claim filed by the parent should be subordinated, 11 U.S.C.S. § 510(b), as one for damages arising from the sale of debtor's securities because the tax agreement on which it was based was entered into as an integral part of the spinoff of debtor from the parent's corporate group.
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Court
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