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Riley v. Tencara LLC (In re Wolverine Proctor & Schwartz LLC)

Riley v. Tencara LLC (In re Wolverine Proctor & Schwartz LLC)

Ruling
Creditor's claim characterized as debt and could not be equitably subordinated absent evidence of injurious conduct.
Procedural posture

Chapter 7 trustee filed an action against creditor seeking to recharacterize the creditor's secured debt as equity or, in the alternative, to equitably subordinate its claim to those of all other creditors under 11 U.S.C.S. § 510(c).

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Commercial opinion summary, case decided on January 21, 2011 , LexisNexis #0211-078