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Dispute Between Partners Leads to Mandatory Subordination

by admin | Thu, 12/31/2009 - 16:35

In Matter of Seaquest Diving, L.P., No. 08-20516 (5th Cir. 8/12/09), the Fifth Circuit considered whether a state court judgment based on a dispute between partners was subject to mandatory subordination under 11 U.S.C. Sec. 510(b) because it arose from the recission of a purchase or sale of a security of the debtor. The court found that mandatory subordination applied.

None of Your Business, Trustee!

by admin | Sun, 08/12/2007 - 11:18

A recent decision by Judge Montali denied a bankruptcy trustee’s bid to capture a piece of the sole proprietorship business of a non-filing spouse. A lawyer reading this decision may be: (i) intrigued by the idea of applying its principles in the right case; (ii) puzzled by how the end game might have been played had the trustee succeeded.