Friesen v. Seacoast Capital Partners II LP (In re QuVis Inc.)
Feb
18
2011
Ruling
Small business investment company was not an insider so that secured claim could not be subordinated.
Procedural posture
Noteholders filed an adversary proceeding against defendant, a Small Business Investment Company ("SBIC"), seeking an order pursuant to 11 U.S.C.S. § 510(c) to subordinate a claim the SBIC filed against a chapter 11 debtor's bankruptcy estate. The SBIC filed a motion for summary judgment creditor.
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Court
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Riley v. Tencara LLC (In re Wolverine Proctor & Schwartz LLC)
Jan
21
2011
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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Court
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Official Comm. Of Unsecured Creditors v. FLI Deep Marine LLC (In re Deep Marine Holdings Inc.)
Jan
19
2011
Ruling
Claims based on alleged confiscation of shares by debtor's majority shareholders through short form merger arose from the purchase or sale of securities and were subject to mandatory subordination.
Procedural posture
Plaintiff, the Official Committee of Unsecured Creditors, filed a Complaint for Subordination Under 11 U.S.C.S. § 510(b) or in the Alternative Under 11 U.S.C.S. § 510(c). The Complaint sought the subordination of the Claims of defendants, entities or persons who filed proofs of claims against one or more of the debtors, below those of general unsecured creditors. The Committee filed a motion for summary judgment.
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Court
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Fitness Intl LLC v. Buttermilk Towne Ctr. LLC (In re Buttermilk Towne Ctr. LLC)
Dec
30
2010
Ruling
Creditor lessee could not offset rent obligations under rejected lease.
Procedural posture
Lessee sought a declaratory judgment permitting it to offset its post-rejection rent obligations to defendant, a chapter 11 debtor that leased retail space to the lessee, under a pre- petition subordination agreement pursuant to 11 U.S.C.S. § 510(a).
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Court
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Maxwell v. Novell Inc. (In re matchFirst Inc.)
Jun
23
2010
Ruling
Claim for fraud in stock purchase subordinated.
Procedural posture
Plaintiff, a chapter 7 trustee, moved for judgment on the pleadings on an adversary complaint against defendant creditor which sought an order per 11 U.S.C.S. § 510(b) subordinating defendant's claim for $100 million in "damages" in connection with a failed business venture with debtor. At issue was whether the claim concerned a purchase of debtor's stock or was one for damages for breach of underlying agreements with debtor.
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Court
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In re Unbreakable Nation Co.
May
19
2010
Ruling
Plan confirmed over objection of creditor who did not establish it was not filed in good faith.
Procedural posture
Debtor moved for confirmation of an amended plan of reorganization. Objections were filed by claimants, two companies and two individuals holding unsecured and unliquidated proofs of claim (POCs) arising out of prepetition litigation between debtor and claimants, which claims were classified in Class 3, which was impaired. Debtor had timely objected to those claims.
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Court
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- 11 U.S.C.
Roeder v. Lockwood (In re Lockwood Auto Group Inc.)
May
14
2010
Ruling
Motion to dismiss fraudulent transfer and equitable subordination proceedings denied.
Procedural posture
Defendant bank sought summary judgment on an amended adversary complaint by plaintiff, a chapter 7 trustee for debtor auto dealership. The bank sought dismissal of actual fraud claims per the Pennsylvania Uniform Fraudulent Transfer Act (PUFTA), 12 Pa. Cons. Stat. § 5101 et. seq., and 11 U.S.C.S. § 548(a)(1)(A) as well as dismissal of an equitable subordination claim filed per 11 U.S.C.S. § 510. An issue concerning a deposition was also raised.
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Court
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8699 Biscayne LLC v. Indigo Real Estate LLC (In re 8699 Biscayne LLC)
Apr
02
2010
Ruling
Motion to dismiss debtor's equitable subordination proceeding against builder denied.
Procedural posture
Defendant builders filed a motion to dismiss the adversary action filed by plaintiff debtor. The builder defendants sought to dismiss the equitable subordination and usury counts in the complaint.
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Court
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- 11 U.S.C.
Speth v. Whitham Farms Feedyard LP (In re Sunbelt Grain WKS LLC)
Mar
31
2010
Ruling
Bankruptcy court properly held that equitable subordination did not apply to give buyer superior interest to bank.
Procedural posture
In a chapter 7 adversary proceeding, appellant creditor challenged a ruling of the U.S. Bankruptcy Court for the District of Kansas granting summary judgment to appellee bank and finding that the bank's security interest in the debtor's grain inventory was superior to that of the creditor. The debtor operated storage facilities that it used in buying and storing grain for farmers.
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Court
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Value Family Properties-West Atlanta LLC v. Harrison (In re Value Family Properties-Atlanta LLC)
Mar
29
2010
Ruling
Claim for equity investment in debtor subordinated to general unsecured claims.
Procedural posture
Chapter 11 debtor-in-possession objected to a proof of claim filed by respondent creditor on the ground that the claim was based on an equity investment made by the creditor in the debtor and therefore, could not be an allowed unsecured claim but had to be subordinated to general unsecured claims pursuant to 11 U.S.C.S. § 510(b).
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Court
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