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§ 510

Khan v. Barton (In re Khan)

Ruling
Bankruptcy appellate panel affirmed bankruptcy court's decision that creditor's claims werenot subordinated as the claims did not arise out of a purchase or sale of securities. (9th Cir.)
Issue(s)
Subordination; Purchase or Sale of Securities.

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Court :
Consumer opinion summary, case decided on January 23, 2017 , LexisNexis #0217-082

In re FAH Liquidating Corp.

Ruling
Claims that did not arise from purchase or sale of debtor's security were not subject tosubordination. (Bankr. D. Del.)
Issue(s)
Subordination; Purchase or Sale of Securities.

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Commercial opinion summary, case decided on January 10, 2017 , LexisNexis #0217-032

In re Yoga Smoga, Inc.

Ruling
Motion to dismiss an involuntary petition denied was no bona fide dispute that creditors'loans were debt transactions rather than equity transactions. (Bankr. S.D.N.Y.)
Issue(s)
Subordination; Equitable Subordination.

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Commercial opinion summary, case decided on December 19, 2016 , LexisNexis #0117-100

In re Aéropostale, Inc.

Ruling
Subordination not warranted where debtor failed to show inequitable conduct on part ofcreditor. (Bankr. S.D.N.Y.)
Issue(s)
Should creditor’s claim be equitably subordinated?

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Commercial opinion summary, case decided on August 26, 2016 , LexisNexis #0916-090

Liquidating Trust Comm. of the Del Biaggio Liquidating Trust v. Freeman (In re Del Biaggio)

Ruling
Fraud claim arising from purchase or sale of securities of debtor’s affiliate was properlysubordinated. (9th Cir.)
Issue(s)
Was an individual creditor's general unsecured fraud claim properly subordinated to other claims senior or equal to it?

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Court :
Commercial opinion summary, case decided on August 22, 2016 , LexisNexis #0916-089

In re Syntax-Brillian Corp.

Ruling
Shareholders could not obtain relief from seven-year old confirmation order, which resulted in all claims arising from stock transactions being subordinated to all other claims.
Issue(s)
Should the court grant shareholders relief from seven-year old confirmation order and eight-year old order ad-mitting the first day affidavit into evidence.

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Commercial opinion summary, case decided on May 11, 2016 , LexisNexis #0616-006

ANZ Sec. Inc. v. Giddens (In re Lehman Bros.)

Ruling
Contribution and reimbursement claims of junior underwriters properly subordinated to claims of general unsecured creditors of lead underwriter.
Issue(s)
What was the proper priority to be assigned to claims by junior underwriters for contribution or reimbursement in the Lehman Brothers bankruptcy?

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on December 14, 2015 , LexisNexis #0116-015

Stapleton v. NewKey Grp. LLC (In re SGK Ventures LLC)

Ruling
Loans made by entity controlled by debtor were subject to equitable subordination.
Issue(s)
Could loans made by entity controlled by insiders of debtor subject to equitable subordination?

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Commercial opinion summary, case decided on November 30, 2015 , LexisNexis #0116-016

Durango Ga. Converting LLC v. Pension Benefit Guar. Corp. (In re Durango Ga. Paper Co.)

Ruling
The Pension Benefit Guaranty Corporation was not an insider whose claim could be subordinated.
Issue(s)
Could claims filed by the Pension Benefit Guaranty Corporation be subordinated as owed to an insider of debtor?

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Commercial opinion summary, case decided on October 05, 2015 , LexisNexis #1015-121

Dorula v. Holmes (In re Starlight Grp. LLC)

Ruling
Claims filed by creditors who loaned money to the debtor LLC and were told that they had a security interest had priority over claims that were filed by an individual who controlled the LLC.
Issue(s)
Whether the claims of creditors who loaned money to the debtor in reliance on security agreements that were ineffective to grant liens on real property have priority over the unsecured claims of a creditor who was not an owner of the debtor but who controlled the debtor and knew that the security agreements were ineffective to grant liens on the debtor's real property?

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Consumer opinion summary, case decided on June 12, 2015 , LexisNexis #0715-012