Legal Opinion

In Re Castleton Plaza, LP

Court of Appeals for the Seventh Circuit

Decided February 14, 2013No. 12-2639PublishedCited by 11 opinions

1Opinion of the Court

EASTERBROOK, Chief Judge.

Creditors in bankruptcy are entitled to full payment before equity investors can receive anything. 11 U.S.C. § 1129(b)(2)(B)(ii). This is the absolute-priority rule. Equity investors sometimes contend that the value they receive from the debtor in bankruptcy is on account of new (post-bankruptcy) investments rather than their old ones. The Supreme Court held in Bank of America National Trust & Savings Ass’n v. 208 North LaSalle Street Partnership, 526 U.S. 434, 119 S.Ct. 1411, 143 L.Ed.2d 607 (1999), that competition is the way to tell whether a new investment makes…

2Cases cited6 opinions

Radlax Gateway Hotel, LLC v. Amalgamated BankSupreme Court of the United States · 2012
Bank of America National Trust & Savings Ass'n v. 203 North LaSalle Street PartnershipSupreme Court of the United States · 1999
Kham & Nate's Shoes No. 2, Inc., Debtor-Appellee v. First Bank of WhitingCourt of Appeals for the First Circuit · 1990
Jewett v. CommissionerSupreme Court of the United States · 1982
In the Matter of Wabash Valley Power Association, Incorporated, Debtor-Appellee. Appeal of United States of America, on Behalf of the Rural Electrification AdministrationCourt of Appeals for the Seventh Circuit · 1996

1 more not listed; retrieve them via the Exa API.

3Cited by11 opinions

Redmond v. Brooke Holdings, Inc. (In re Brooke Corp.)United States Bankruptcy Court, D. Kansas · 2014
In re GAC Storage El Monte, LLCUnited States Bankruptcy Court, N.D. Illinois · 2013
In re Chardon, LLCUnited States Bankruptcy Court, N.D. Illinois · 2014
Buridi v. KMC Real Estate Investors, LLC (KMC Real Estate Investors, LLC)United States Bankruptcy Court, S.D. Indiana · 2015
Chicago & Vicinity Laborers' District Council Pension Plan v. R&W Clark Construction, IncDistrict Court, N.D. Illinois · 2024

6 more not listed; retrieve them via the Exa API.