In re Orange County Nursery Inc.
Sep
04
2012
Ruling
Claim for recovery of equity investors subordinated.
Procedural posture
This valuation arose from a dissolution action of debtor corporation. Debtor sought an order from the court that the Minority Voting Trust (hereafter "Minority") held an equity interest and was not an unsecured creditor.
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Court
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Silliman v. Muria (In re United Funding Mortg. Corp.)
Aug
09
2012
Ruling
Claim filed by owners of 100 percent of debtor's preferred capital stock for fraud or rescission subordinated to claims of other creditors.
Procedural posture
Movant trustee asked the court to grant summary judgment on its adversary complaint to subordinate certain claims filed by defendants, the owners of 100% of the preferred capital stock of debtor, to the claims of other creditors as per 11 U.S.C.S. § 510(b). Defendants did not file in opposition to the motion.
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Court
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Assante v. Eastern Sav. Bank (In re Assante)
May
22
2012
Ruling
Debtor's proceeding to subordinate claim dismissed as issues were fully and fairly litigated in state court.
Procedural posture
Creditor filed a motion to dismiss chapter 11 debtor's adversary proceeding, which sought to subordinate the creditor's mortgage to the claims of all other creditors pursuant to 11 U.S.C.S. § 510(c) and to vacate the creditor's lien.
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Court
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Wolff v. Waverly View Investors LLC (In re RGHGAB at Frederick LLC)
Apr
24
2012
Ruling
Claim of LLC created by owner of LLC that created debtor LLC to purchase secured debtor was not subject to equitable subordination.
Procedural posture
Chapter 7 trustee filed an adversary proceeding against defendant creditors, seeking a determination that a claim one of the creditors filed against an LLC's ("debtor's") bankruptcy estate was subject to equitable subordination under 11 U.S.C.S. § 510(c). The creditor opposed the trustee's action and filed a motion under 11 U.S.C.S. § 362 for relief from the automatic stay.
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Court
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CIT Group Inc. v. Tyco Intl Ltd. (In re CIT Group Inc.)
Dec
21
2011
Ruling
Claim based on rights under tax agreement with debtor's parent in corporate restructuring including stock issuance did not arise form the sale of a security and was not subject to subordination.
Procedural posture
Pending were cross-motions for summary judgment filed by plaintiff, the reorganized debtor, and by defendant, its former indirect parent company. Debtor argued that a claim filed by the parent should be subordinated, 11 U.S.C.S. § 510(b), as one for damages arising from the sale of debtor's securities because the tax agreement on which it was based was entered into as an integral part of the spinoff of debtor from the parent's corporate group.
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Court
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In re Washington Mut. Inc.
Dec
20
2011
Ruling
Claim based on sale of trust certificates was not subject to subordination where certificates were not securities of debtor or affiliate.
Procedural posture
Before the court was debtor's objection to the claim filed by a claimant. The crux of the issues presented was whether the claimant had properly pleaded a claim and if that claim should be subordinated. The claimant alleged that a subsidiary of a bank owned by debtor solicited, offered, and sold trust certificates to the claimant pursuant to offering documents containing material misrepresentations and omissions.
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Court
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In re USDigital Inc.
Dec
20
2011
Ruling
Determination that claims were subject to equitable subordination was a core proceeding.
Procedural posture
Chapter 7 trustee filed an adversary proceeding against defendants, several individuals and businesses, and three individuals and one of the businesses asked the court to determination if six counts pending against them were core or non-core proceedings. The court addressed the question of whether the trustee's count seeking equitable subordination of claims under 11 U.S.C.S. § 510(c) was a core or a non-core proceeding.
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Court
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In re Rancher Energy Corp.
Jun
30
2011
Ruling
Claims for securities violations subordinated to level of common stock.
Procedural posture
Chapter 11 debtor filed an omnibus objection to proofs of claim of its stockholders, asserting that the subject claims were barred by the statute of limitations, and, to the extent they could be allowed, the claims were subordinated to the level of common stock pursuant to 11 U.S.C.S. § 510(b).
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Court
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- 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
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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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