OPINION 1 Sontchi , C.J. INTRODUCTION 2 Before the Court is the (i) Ad Hoc Group of Second Lien Creditors' (the "Second-Lien Group") Motion to Enforce Intercreditor Agreement 3 (the "Second-Lien Group Motion"), and (ii) LNV Corporation's ("LNV" or "First-Lien Creditor") Motion of LNV Corporation to Enforce Intercreditor Agreement (the "LNV Motion," and together with the 2L Group Motion, the "Motions"). 4 The Motions seek to define the rights of both the Second-Lien Group and...
OPINION 2 BY: KEVIN J. CAREY , UNITED STATES BANKRUPTCY JUDGE . FTI Consulting, Inc., in its capacity as the Trustee of Centaur LLC Litigation Trust (the "Trustee"), filed a complaint against Joseph Sweeney and Linda Porr Sweeney (the "Defendants") to recover alleged fraudulent transfers by Debtor Valley View Downs, LP ("VVD") to the Defendants. The Trustee moved for summary judgment in his favor. 3 The Defendants oppose the summary judgment motion, contending that the Transfers are...
OPINION 1 BRENDAN LINEHAN SHANNON , UNITED STATES BANKRUPTCY JUDGE . Before the Court is a Motion for Summary Judgment [Adv. Docket No. 17] filed by Defendant Internal Revenue Service ("the IRS" or "Defendant"). For the following reasons, the Court will GRANT the Defendant's Motion for Summary Judgment. BACKGROUND The Debtors filed a Chapter 13 bankruptcy petition on June 3, 2010 [Docket No. 1]. They filed an initial plan on June 11, 2010. [Docket No. 12]. That plan provided for the...
MEMORANDUM OPINION 1 Mary F. Walrath , United States Bankruptcy Judge . Before the Court is the Motion for Summary Judgment filed by MUFG Union Bank ("MUFG") and UnionBanCal Equities ("UBE") (collectively the "Defendants") on the complaint filed by AI International Holdings, Ltd. (the "Plaintiff") requesting a determination that the Defendants' claims and liens are invalid, in whole or in part. The Defendants contend that they are entitled to summary judgment because (1) the Plaintiff'...
OPINION (Re: D.I. 143, 146). KEVIN J. CAREY , Bankruptcy Judge . Before the Court are motions filed by Defendant Mark Dunaway 2 and Defendants Carl Coward, Alastair Smith, and North Dakota Water Partners, LLC 3 to dismiss the amended complaint filed by Gavin/Solmonese LLC, as liquidation trustee for the Citadel Creditors' Grantor Trust (the "Liquidation Trustee"), alleging breach of fiduciary duty, fraud and concealment, among other claims. For the reasons set forth below, the motions...
OPINION Re: Docket No. 60 BRENDAN LINEHAN SHANNON , Bankruptcy Judge . Before the Court is a Motion to Dismiss filed by the reorganized debtor Mesabi Metallics Company LLC (f/k/a Essar Steel Minnesota LLC) (hereinafter "Mesabi"). Glacier Park Iron Ore Properties, LLC ("GPIOP") is a Defendant in this adversary and has filed Counterclaims against Mesabi for tortious interference and breach of contract. Mesabi herein seeks dismissal of each of GPIOP's Counterclaims on the ground GPIOP has...
MEMORANDUM 2 BY: KEVIN J. CAREY , UNITED STATES BANKRUPTCY JUDGE . On June 13, 2016, the Debtors filed chapter 11 bankruptcy petitions. 3 The Debtors' plan of liquidation (the "Plan") 4 was confirmed by an Order of the Court dated February 14, 2017. 5 The Plan established a Liquidating Trust for the purpose of, among other things, administering, monetizing and liquidating the Liquidating Trust Assets, resolving all Disputed Claims, and making all Distributions from the Liquidating...
MEMORANDUM ORDER Re: AP Docket No. 62 BRENDAN LINEHAN SHANNON , Bankruptcy Judge . Upon consideration of the Motion to Dismiss the Counterclaims and Third-Party Claims of Cleveland-Cliffs, Inc and Cleveland-Cliffs Minnesota Land Development, LLC [AP Docket No. 62] filed by Plaintiff Mesabi Metallics Company LLC (f/k/a Essar Steel Minnesota LLC "ESML") (hereinafter "Mesabi") and the Third-Party Defendants; and briefing on the matter having been completed; the record reflects as follows: 1....
OPINION 1 Re: Docket No. 6 BRENDAN LINEHAN SHANNON , Bankruptcy Judge . Before the Court is a Motion to Dismiss (the "Motion") filed by Superior Mineral Resources LLC ("Superior"). Superior is a Defendant in this adversary proceeding alongside Mesabi Metallics Company LLC (f/k/a Essar Steel Minnesota LLC) (hereinafter "Mesabi" or the "Reorganized Debtor") and Miranda Mineral Resources LLC ("Miranda"). For the following reasons, the Court will GRANT Superior's Motion. I. BACKGROUND This...
OPINION 1 MARY F. WALRATH , Bankruptcy Judge . Before the Court are cross-motions for summary judgment filed by Wilmington Savings Fund Society, FSB ("WSFS") and M.J. Soffe, LLC ("Soffe"), as well as Soffe's motion for summary judgment against the Debtors. The dispute is which party has priority in the inventory (and its proceeds) sold by Soffe to the Debtors on consignment. Because the Court finds that WSFS did not have actual knowledge of Soffe's consignment interest until after Soffe...
OPINION 1 Mary F. Walrath , United States Bankruptcy Judge . Before the Court are cross-motions for summary judgment under Rule 56(a) of the Federal Rules of Civil Procedure. Plaintiff-Intervenor Wilmington Savings Fund Society, FSB ("WSFS") seeks disgorgement of proceeds from certain goods sold on consignment. Defendant Performance Apparel Corporation ("PAC") contends it is entitled to keep the proceeds because WSFS's actual knowledge of the consignment relationship between PAC and the...
OPINION BRENDAN LINEHAN SHANNON , UNITED STATUS BANKRUPTCY JUDGE . Before the Court is the Motion filed by W.D. Hilton, Jr., Trust Services, Inc., James A. Huguenard, and Randall D. Grooms, Jr. (collectively, the "Defendants" or "Trustees") to Dismiss Plaintiff's Complaint (the "Defendant's Motion") [Adv. Docket No. 81]. Richard Smith, Mark Little, and Larry Garrett (collectively, the "Plaintiffs") oppose the Motion [Adv. Docket No. 88]. The Plaintiffs have also filed their own Motion to...
MEMORANDUM OPINION Re: Adv. Dkt. No. 6 KEVIN GROSS , Bankruptcy Judge . Before the Court is the motion (the "Motion") of Gibson Dunn & Crutcher LLP (the "Defendant") to dismiss with prejudice an adversary complaint (the "Complaint") filed by Alfred T. Giuliano, the chapter 7 trustee for the jointly administered bankruptcy estates of Liquid Holdings Group, Inc. and Liquid Prime Holdings, LLC (the "Trustee"), pursuant to Federal Rule of Civil Procedure 12(b)(6) ("Rule 12(b)(6)") 1 . For...
OPINION Re: D.I. 654. KEVIN GROSS , Bankruptcy Judge . The Court is ruling on McKesson Corporation's ("McKesson") and its wholly owned subsidiary McKesson Patient Relationship Solutions' ("MPRS") Motion for an Order Determining that McKesson is Entitled to the Disputed Funds (the "Motion") (D.I. 654). McKesson seeks to affect a setoff under section 553 of the Bankruptcy Code. 1 Specifically, McKesson asks to offset its $6,932,816.40 debt to the Debtor under the Core Distribution...
OPINION Re: D.I. 654 KEVIN GROSS , U.S.B.J . The Court is ruling on McKesson Corporation's ("McKesson") and its wholly owned subsidiary McKesson Patient Relationship Solutions' ("MPRS") Motion for an Order Determining that McKesson is Entitled to the Disputed Funds (the "Motion") (D.I. 654). McKesson seeks to affect a setoff under section 553 of the Bankruptcy Code. 1 Specifically, McKesson asks to offset its $6,932,816.40 debt to the Debtor under the Core Distribution Agreement ("...
FINDINGS OF FACT AND CONCLUSIONS OF LAW ON JOINT MOTION TO FIX APPROPRIATE ALLOCATION OF CERTAIN RESERVES AND EXPENSES AS BETWEEN THE EFH AND EFIH DEBTORS 1 Christopher S. Sontchi , Chief United States Bankruptcy Judge . This has been a long, complicated and expensive case. The Debtors filed bankruptcy on April 29, 2014. The funded debt was split between two silos. The T-side debt was owed by a family of companies engaged in the production of energy as well as the retail sale of...
OPINION 1 LAURIE SELBER SILVERSTEIN , UNITED STATES BANKRUPTCY JUDGE . Before the Court is Defendants' Motion to Dismiss Complaint on Jurisdictional Grounds 2 through which Defendants seek to dismiss or stay this adversary proceeding on multiple grounds, some at least nominally jurisdictional, most not. Plaintiffs and Defendants have completed their briefing. 3 I deferred ruling on the Motion to Dismiss pending a ruling by the Third Circuit on an appeal from an order in the main case....
MEMORANDUM ORDER 1 Re: AP Docket No. 5 BRENDAN LINEHAN SHANNON , Bankruptcy Judge . Upon consideration of the Motion to Dismiss [AP Docket No. 5] filed by Defendant Citicorp Trust Bank ("Citicorp"); and briefing on the matter having been completed; the record reflects as follows: 1. Plaintiffs Donald H. Whitworth and Willie Beatrice Whitworth filed their joint Chapter 13 petition on September 6, 2016 (the "Petition Date"). 2. Plaintiffs filed this adversary proceeding on April 25, 2018...
(Re: D.I. 2721, 2397) OPINION ON CONFIRMATION 2 KEVIN J. CAREY , UNITED STATES BANKRUPTCY JUDGE . Before the Court is the Debtors' Motion for Approval of Certain Compromises and Settlements, Partial Substantive Consolidation, and Related Relief with Respect to the Plan (D.I. 2721) (the "Motion"), and the Debtors' request for confirmation of the First Amended Joint Chapter 11 Plan of Liquidation of Woodbridge Group of Companies, LLC and Its Affiliated Debtors (D.I. 2397) (the "Plan"),...
(Re: D.I. 15) OPINION 2 KEVIN J. CAREY , UNITED STATES BANKRUPTCY JUDGE . The Plaintiffs 3 in this adversary proceeding filed their First Amended Complaint (Adv. D.I. 12) (the "Complaint") on July 17, 2018, asserting four counts against the Debtors: (1) Seeking a declaratory judgment that the Plaintiffs hold pre-petition, valid, perfected, first-priority liens against certain real property owned by the Debtors; or alternatively, (2) Seeking a declaratory judgment that the Plaintiffs...
