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In re Mid Atl. Retail Group Inc.

A corporate debtor filed a petition under chapter 7 of the Bankruptcy Code, and an interim trustee was appointed to represent the bankruptcy estate. An attorney who represented movants, an ad hoc committee of creditors, called for an election of a permanent trustee, pursuant to 11 U.S.C.S. § 702, and asked the court to resolve a disputed election after the interim trustee received more votes than a limited liability company (LLC).
Ruling: 
LLC was not eligible to serve as chapter 7 trustee.
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Commercial case opionion summary, case decided on June 18,2008, LexisNexis #0708-109

In re Conner Corp.

An amount remained on deposit in the registry of a bankruptcy court which represented distributions which were not claimed by creditors of a bankruptcy debtor, and the debtor moved for return of the unclaimed funds pursuant to 11 U.S.C.S. §§ 347(b), 1143.
Ruling: 
Debtor not entitled to return of unclaimed funds where prior creditor classes had not been paid in full.
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Commercial case opionion summary, case decided on June 11,2008, LexisNexis #0808-030

In re Deluxe Cleaners of Durham Inc.

Plaintiff trustee filed an adversary proceeding against defendant ex-wife under 11 U.S.C.S. § 542(a) for turnover to the debtor's bankruptcy estate of the post-petition settlement of a personal injury claim that was transferred from a joint checking account to the ex-wife. The ex-wife filed a third-party complaint against third-party defendant debtor for the amount of the transferred funds.
Ruling: 
Attorneys' fee application denied where firm rendered prepetition services not demonstrably for debtor's benefit and made firm an interested party ineligible for pospetition representation.
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Commercial case opionion summary, case decided on May 01,2008, LexisNexis #0608-072

In re Westcrowns Inc.

A chapter 7 trustee objected to a creditor's proof of claim for vacation pay as an 11 U.S.C.S. § 507(a) priority claim.
Ruling: 
Proof of claim for vacation pay by debtor's former president allowed over trustee's objections.
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Commercial case opionion summary, case decided on April 28,2008, LexisNexis #0608-135

Angell v. Ray J. Pennington Inc. (In re Partitions Plus of Wilmington Inc.)

Plaintiff chapter 7 Trustee filed an adversary proceeding against defendant creditor seeking to avoid a transfer from the debtor as preferential. The creditor had worked as a subcontractor for the debtor. The creditor asserted, inter alia, that the payments could not be avoided because they were a contemporaneous exchange for new value given to the debtor under 11 U.S.C.S. § 547(c)(1). Both parties filed summary judgment motions.
Ruling: 
Transfer was not avoidable due to applicability of contemporaneous exchange for new value defense.
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Commercial case opionion summary, case decided on March 20,2008, LexisNexis #0808-067

In re Sak Dev. Inc.

A construction company (movant) requested an order per 11 U.S.C.S. § 506(c) requiring a bank with a security interest in certain real estate in which debtor also had an interest to reimburse movant for expenses that it claimed to have incurred to preserve the value of the real estate. Specifically, movant sought more than $150,000 on account of said expenses. The bank objected to any reimbursement and, inter alia, challenged movant's standing.
Ruling: 
Construction company was entitled to reimbursement for expenses incurred in preservation of property of the estate.
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Commercial case opionion summary, case decided on February 29,2008, LexisNexis #0408-078

In re Blanchard Transp. Servs.

The debtor filed a motion for an order directing turnover of property of the debtor's estate that was in the possession of the debtor's customer. In response, the customer requested that the proceedings be stayed or dismissed while the parties submitted their disputes to arbitration, or in the alternative, that the court dismiss the debtor's motion so that the debtor could initiate the matter as an adversary proceeding.
Ruling: 
Arbitration of core matters is inconsistent with Bankruptcy Code.
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Commercial case opionion summary, case decided on February 29,2008, LexisNexis #0508-024

In re LLS Mgmt. Co.

The chapter 7 trustee filed a motion to determine whether debtor was a "health care business" as that term was defined by 11 U.S.C.S. § 101(27A). Specifically at issue was the proper disposition of records maintained by debtor in connection with its operation of a smoking cessation program.
Ruling: 
Shredding of patient records of debtor smoking cessation center and retention of CD containing patients' information was proper procedure.
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Commercial case opionion summary, case decided on February 11,2008, LexisNexis #0408-038

In re Ameritex Yarn LLC

A chapter 7 petition was entered against a debtor. The debtor consented to entry of an order of relief, and converted the case to a chapter 11 proceeding. Counsel for the committee of unsecured creditors (the Committee) filed an application for interim compensation and reimbursement for a six week period. Counsel also sought establishment of procedure for the submission of subsequent applications.
Ruling: 
Counsel fees awarded in reduced amount where case was not extraordinary and attorneys had not filed administrative expense claim for pre-apppointment services.
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Commercial case opionion summary, case decided on October 05,2007, LexisNexis #1207-002

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