In re New Century TRS Holdings, Inc.

Chapter 11

MEMORANDUM2

KEVIN J. CAREY, UNITED STATES BANKRUPTCY JUDGE

I. INTRODUCTION

Before the Court is the objection by the Trustee for the New Century Liquidating Trust to Janet and Alfonso Longo’s (the “Longos”) unsecured claim number 3801 in the amount of $2,816,854.62 (the “Claim” or the “Longos’ Claim”). The Court held an evidentiary hearing on the merits of the Longos’ Claim. Subsequently, the Trustee and the Longos filed post-hearing briefs. For the reasons set forth below, the Trustee’s objection will be sustained, in part, and denied, in part. The Longos’ Claim will be allowed in the…