Legal Opinion

In re Fah Liquidating Corp.

United States Bankruptcy Court, D. Delaware

Decided January 10, 2017No. Case No. 13-13087(KG)Published

1Opinion of the Court

*162Re: D.I. 936, 1249 OPINION

KEVIN GROSS, U.S.B.J.

INTRODUCTION

The issue at hand is this: are claims of Membership Unit Purchasers to be subordinated pursuant to section 510(b) of the Bankruptcy Code because they are or are not securities of the Debtors or an affiliate of the Debtors? The Court will deny subordination and therefore overrule certain of the claims objections under the circumstances presented. Before the Court are the Debtors’ Third Omnibus Objection to Certain Proofs of Claim (Equity Claims and Reclassification Claims) (Substantive) (the “Debtors’ Objection”) (D.I. 936) and the…

2Cases cited5 opinions

In Re Telegroup, Inc. Baroda Hill Investments, Ltd. Leheron Corporation, Ltd. Kimble John Winter v. Telegroup, IncCourt of Appeals for the Third Circuit · 2002
Templeton v. O'Cheskey (In Re American Housing Foundation)Court of Appeals for the Fifth Circuit · 2015
In Re Washington Mutual, Inc.United States Bankruptcy Court, D. Delaware · 2011
In re SemCrude, L.P.United States Bankruptcy Court, D. Delaware · 2010
In re Lehman Bros. Holdings Inc.United States Bankruptcy Court, S.D. New York · 2014