SeaQuest Diving LP v. S & J Diving Inc. (In re SeaQuest Diving)
Aug
12
2009
Ruling
Judgment debt that stemmed from rescission of purchase or sale of securities was subject to mandatory subordination.
Procedural posture
In adversary proceedings, defendant unsecured creditor appealed a judgment from the District Court for the Southern District of Texas, holding that its claim against plaintiff chapter 11 debtors, which arose from a state court judgment, was subject to mandatory subordination under 11 U.S.C.S. § 510(b) because it stemmed from the rescission of a purchase or sale of a security of the debtors.
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Court
:
Judge or Jurisdiction information not available
- 11 U.S.C.
Kaler v. Bala (In re Racing Servs. Inc.)
Jul
02
2009
Ruling
Equitable subordination of claim properly vacated after underlying criminal conviction was reversed.
Procedural posture
Appellant bankruptcy trustee sought review of a decision from the bankruptcy appellate panel for the eighth circuit (BAP), which affirmed an order by the bankruptcy court granting, pursuant to Fed. R. Civ. P. 60(b)(5), appellee claimant's motion to vacate an earlier order subordinating her claim for administrative expenses.
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Court
:
Judge or Jurisdiction information not available
Official Comm. of Unsecured Creditors v. Suisse (In re Yellowstone Mt. Club LLC)
May
13
2009
Ruling
Secured creditor's claim equitably subordinated on basis of overreaching and predatory lending practices.
Procedural posture
Defendants, the unsecured creditors' committee and other creditors, moved to have the rights of the principal secured creditor and its secured claim of $232 million equitably subordinated, pursuant to 11 U.S.C.S. § 510(c), The court entered an abbreviated and limited interim ruling for purposes of facilitating the upcoming auction of the debtors' assets.
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Court
:
Cadleway Props. V. Andrews (In re Andrews)
Apr
02
2009
Ruling
Creditor's subrogation claim against debtor's spouse rendered moot by consummation of settlement agreement.
Procedural posture
Plaintiff creditor filed an adversary proceeding against defendant, the wife of a chapter 7 debtor, seeking an order under 11 U.S.C.S. § 510(c) which subordinated a claim the wife filed against her husband's bankruptcy estate to claims filed by other creditors. The bankruptcy court issued an order that subordinated the wife's claim, and the wife appealed. The district court reversed the bankruptcy court's order and remanded the case.
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Court
:
- 11 U.S.C.
Plaza Equities LLC v. Panker (In re Copperfield Invs. LLC)
Feb
26
2009
Ruling
Settlement of dispute over debtor's interest in mortgages approved.
Procedural posture
A chapter 11 trustee filed a motion under Fed. R. Bankr. P. 9019 to approve a settlement agreement with a creditor. A group of entities holding the largest claims against the estate (entities) conditionally objected to the approval of the settlement. The entities contended that the settlement was only appropriate if the chapter 11 plan was confirmed.
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Court
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In re Patriot Aviation Servs.
Nov
18
2008
Ruling
Alternative transaction fee due on aborted securities transaction was only subject to subordination to secured claims.
Procedural posture
The official committee of unsecured creditors for a chapter 11 debtor filed a motion for partial summary judgment on its objection to a claim of an aborted securities purchaser. The committee sought to subordinate the claim to the claims of general unsecured creditors pursuant to 11 U.S.C.S. § 510(b).
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Court
:
SI Restructuring Inc. v. Faulkner (In re SI Restructuring Inc.)
Jun
20
2008
Ruling
Equitable subordination of secured claims reversed.
Procedural posture
Appellants sought review of an order of the District Court for the Western District of Texas, San Antonio Division, affirming a bankruptcy court's order invoking equitable subordination pursuant to 11 U.S.C.S. § 510(c), which effectively converted secured claims filed by appellants to unsecured claims for the purpose of any distributions.
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Court
:
Judge or Jurisdiction information not available
- 11 U.S.C.
Kaler v. Bala (In re Racing Servs.)
Apr
25
2008
Ruling
Bankruptcy court did not abuse discretion in partially vacating order for equitable subordination of claims by debtor's founder and former CEO.
Procedural posture
Appellants, the chapter 7 trustee and the State of North Dakota, challenged a ruling of the Bankruptcy Court for the District of North Dakota granting a motion to vacate part of an order that had equitably subordinated the claims of appellee, the former founder and CEO of debtor, as permitted by 11 U.S.C.S. § 510. Both appellants had unsuccessfully objected to the motion to vacate.
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Court
:
Judge or Jurisdiction information not available
In re NationsRent Inc.
Jan
09
2008
Ruling
Creditors holding make whole sale claims were entitled to priority over senior note holders'claims.
Procedural posture
The unsecured creditors liquidating trust sought an order approving an initial distribution to the general unsecured creditors. The trust held approximately $19.37 million in cash and sought to make an initial distribution of $19 million. Objections to the order of distribution questioned whether the senior notes held by sellers of assets to the debtors were subordinated to the make-whole sale claims and the assignee of claims.
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Court
:
Margaret B. McGimsey Trust v. USA Capital Diversified Trust Deed Fund LLC (In re Consumer USA Comml Mtg. Corp.)
Aug
15
2007
Ruling
Proofs of claim for breach of contract and fraud relating to purchase of memebrship interests in debtor subordinated to those of equity holders.
Procedural posture
Appellant members sought review of a decision of the Bankruptcy Court for the District of Nevada, which sustained the objection of appellee committee and disallowed the members' proofs of claim for breach of contract and fraud relating to their purchase of their membership interests in the debtor.
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Court
:
Judge or Jurisdiction information not available