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In re Aiolova

Ruling
Proof of claim disallowed due to lack of documentation and inconsistencies in creditor boyfriend's statements.
Issue(s)
Should proof of claim be disallowed due to insufficiency of evidence and contradictory statements by creditor .

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Consumer opinion summary, case decided on October 29, 2013 , LexisNexis #1113-076

In re American Rds. LLC

Ruling
Ad hoc committee of bondholders lacked standing to participate in chapter 11 case pursuant to "no action" clause.
Issue(s)
Did "no action" clause in contracts for insured unitranche financing bar bondholders from participating in debtor's chapter 11 case?

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Commercial opinion summary, case decided on August 28, 2013 , LexisNexis #0913-094

In re Fairfield Sentry Ltd.

Ruling
Foreign representative's motion to avoid sale of debtor's SIPA claim denied where foreign court had held sale valid.
Procedural posture

A foreign representative filed an application seeking an order under 11 U.S.C.S. §§ 105(A), 363, 1507(A), 1520(A)(2), and 1521(A) which invalidated a trade confirmation he entered on behalf of three investment funds ("debtors") to sell a claim the debtors filed in an action under the Securities Investor Protection Act ("SIPA"). An LLC that bought the claims opposed the application.

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Commercial opinion summary, case decided on January 10, 2013 , LexisNexis #0213-032

Securities Investor Prot. Corp. v. Bernard L. Madoff Inv. Sec. LLC (In re Madoff)

Ruling
Customers of debtor who operated Ponzi scheme could not file federal securities law actions that duplicated actions by trustee.
Procedural posture

The class action plaintiffs filed a motion for a determination that the commencement of securities class action lawsuits in federal district court against non-debtor parties was not prohibited by a permanent injunction issued by the court as part of a settlement order and would not violate the automatic stay.

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Commercial opinion summary, case decided on June 20, 2012 , LexisNexis #0712-039

In re Greenwich Sentry LP

Ruling
Scheduled funds that failed to file proofs of claim despite extension of bar date were not entitled to share in distribution.
Procedural posture

Debtor investment partnerships filed petitions under chapter 11 of the Bankruptcy Code, and the court appointed a trustee to liquidate the debtors' assets. Movant hedge funds sought an order declaring that they were holders of allowed limited partner interests and were entitled to distributions under the debtors' bankruptcy plans. The trustee for the debtors' liquidating trusts filed an opposition to the funds' motion.

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Commercial opinion summary, case decided on June 01, 2012 , LexisNexis #0612-130

In re HBLS LP

Ruling
Motion to reopen case seeking bankruptcy court intervention in dispute between non-debtor entities denied.
Procedural posture

Movant, an individual who was involved in litigation over the sale of stock to a business that declared chapter 11 bankruptcy, filed a motion to reopen the business's bankruptcy case pursuant to 11 U.S.C.S. §§ 350(b) and 105(a), Fed. R. Bankr. P. 5010, Bankr. S.D.N.Y. R. 5010-1.

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Commercial opinion summary, case decided on April 17, 2012 , LexisNexis #0512-034

In re Uvino

Ruling
General unsecured portion of late filed amended proof of claim that did not relate back to original proof of claim disallowed.
Procedural posture

Before the court was debtors' motion pursuant to 11 U.S.C.S. § 502 and Fed. R. Bankr. P. 3007, seeking to expunge the late-filed general unsecured portion of Claim No. 10 filed by claimants.

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Consumer opinion summary, case decided on March 14, 2012 , LexisNexis #0412-079

In re FairPoint Communs. Inc.

Ruling
Bankruptcy court abstained from estimate of city's tax claim on reconsideration.
Procedural posture

Chapter 11 debtors filed a motion to estimate the maximum allowed proofs of claim pursuant to 11 U.S.C.S. § 105(a) and § 502(c) with regard to two creditors. The court entered an order that, inter alia, estimated one of the creditor's claim only in the unsecured amount of $1,062. That creditor later filed a motion to reconsider the court's order pursuant to 11 U.S.C.S. § 502(j).

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Commercial opinion summary, case decided on January 04, 2012 , LexisNexis #0212-034

AEG Liquidation Trust v. Toobro NY LLC (In re American Equities Group Inc.)

Ruling
Post-confirmation acts by liquidation trust to determine competing lien rights remanded to state court.
Procedural posture

Plaintiff liquidating trust created by a bankruptcy plan brought an action in state court against various defendants including a creditor asserting a lien against property against which the trust also claimed a lien. The creditor removed the action to the bankruptcy court, and the bankruptcy court sua sponte considered whether to remand the action to state court on equitable grounds pursuant to 28 U.S.C.S. § 1452(b).

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Commercial opinion summary, case decided on November 29, 2011 , LexisNexis #1211-140

Securities Investor Prot. Corp. v. Bernard Madoff Inv. Sec. LLC

Ruling
Stay enforced against Cayman Islands transferees and Cayman Islands action against estate precluded.
Procedural posture

Plaintiff, the trustee for the substantively consolidated Securities Investor Protection Act (SIPA), 15 U.S.C. §§ 78aaa et seq., moved for entry of an order enforcing the automatic stay of 11 U.S.C.S. § 362(a), the provisions of SIPA prohibiting suits against the trustee, and the court's injunctive powers under 11 U.S.C.S. § 105(a), against claims filed by defendant transferees in a Cayman Islands action.

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Commercial opinion summary, case decided on October 12, 2011 , LexisNexis #1111-074