Posey v. Kinkaid (In re Kinkaid)
Feb
18
2011
Ruling
Divorce decree did not extinguish prior lien on debtor's property or entitle former spouse holding second lien to equitable subordination of the prior lien.
Procedural posture
Plaintiff creditor objected to (i) dischargeability of her debt, and (ii) defendant debtor receiving a discharge in the underlying bankruptcy. Also, the creditor sought a determination that her lien on certain real property owned by debtor was the first lien. Alternatively, to the extent that the court concluded that defendants' lien on that property was the senior lien, she sought subordination under 11 U.S.C.S. § 510(c). A trial was held.
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Court
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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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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
:
- 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
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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
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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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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