- 11 U.S.C.
DeCurtis Holdings LLC, In re
Aug
14
2023
Ruling
Equitable subordination claim failed absent plausible allegations that the LLC was an insideror engaged in inequitable conduct. (Bankr. D. Del.)
Issue(s)
Subordination; Equitable Subordination; Allowed Claims.
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Court
:
- 11 U.S.C.
Zohar III, Corp., In re--Tilton v. MBIA Inc.
Mar
25
2022
Ruling
Complaint for equitable subordination was dismissed as the complaint failed to allegesufficient facts that defendants acted inequitably. (Bankr. D. Del.)
Issue(s)
Subordination; Equitable Subordination; Allowed Claims.
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Court
:
- 11 U.S.C.
In re Optim Energy LLC
May
13
2014
Ruling
Creditor not entitled to derivative standing to pursue claims against subsidiary that held 100 percent of equity interests of chapter 11 debtors.
Issue(s)
Whether creditor of chapter 11 debtors could be granted derivative standing to pursue claims against an entity that, through its subsidiary, indirectly held 100% of the equity interests of each of the debtors, as well as claims against the subsidiary.
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Court
:
- 11 U.S.C.
Redmond v. Cimarron Energy Co. LLC (In re Alternate Fuels Inc.)
Mar
18
2014
Ruling
Decisions for recharacterization of creditor's claim and equitable subordination affirmed.
Issue(s)
Did bankruptcy court err in finding that creditors did not sustain their burden of proof as to the validity and amount of their claims, and that any secured claims they had should be equitably subordinated?
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Court
:
Judge or Jurisdiction information not available
- 11 U.S.C.
In re El Matador Inc.
Mar
17
2011
Ruling
Objection to Department of Labor judgment claim treated as request for subordination and denied.
Procedural posture
Debtor filed a petition under Chapter 11 of the Bankruptcy Code and the U.S. Department of Labor ("DOL") filed a claim against the debtor's bankruptcy estate, seeking payment of a judgment it obtained in federal district court. The debtor filed an objection to the claim, and the court treated the objection as a request for subordination under 11 U.S.C.S. § 510(c)(1) of a portion of the judgment the DOL obtained.
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Court
:
- 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
:
- 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
- 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
:
- 11 U.S.C.
In re Insilco Techs. Inc.
Mar
20
2007
Ruling
Terms of settlement agreement conceding that debts owed to non-participating lenders were allowable claims barred trustee's action for recharacterization and equitable subordination.
Procedural posture
Appellant trustee appealed from the District Court for the District of Delaware which dismissed the trustee's objections to a proof of claim. The appeal arose out of the 11 U.S.C. § 502 claim allowance process in debtor's chapter 11 bankruptcy liquidation and the question was whether the trustee could bring a recharacterization action and an equitable subordination action under 11 U.S.C. § 510(c)(1) against certain lenders.
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- 11 U.S.C.
Bala v. Kaler (In re Racing Servs.)
Apr
04
2006
Ruling
Court affirmed the bankruptcy court's order that equitably subordinated an application for unpaid postpetition rent to all other allowed claims including criminal judgments involving inequitable conduct that injured creditors.
Procedural posture
Appellant claimant sought review of a decision of the Bankruptcy Court for the District of North Dakota, which ordered that the claimant's administrative expense claim against the bankruptcy estate of appellee debtor for postpetition rent be subordinated to all other allowed claims.
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