National Telephone Co. v. O'Brien

RULING ON MOTION TO DISMISS ADVERSARY PROCEEDING

CLARIE, Chief Judge.

This controversy arises from the pending bankruptcy litigation concerning National Telephone Company, Inc. and its wholly-owned subsidiary, National Telecommunications Systems, Inc. (hereinafter “the debtors”). A stockholders’ committee claiming to represent approximately 62% of the issued and outstanding stock of the debtor corporations has brought a complaint seeking equitable subordination of the claims of the defendant banks. The defendants, the five banks and the Trustee in Bankruptcy, have moved to dismiss the aforesaid…