In re Westek Georgia, LLC (Ch. 11 Case No. 03-55298, Adv. No. 04-05058)
The debtor filed a complaint to subordinate the creditors' secured claims to all unsecured claims for purposes of distribution, 11 U.S.C.A. § 510(c).The creditors filed a motion to dismiss contending that a prior pending action in state court would determine the issues presented. The Court denied the motion to dismiss noting that the state court has no jurisdiction to subordinate the defendant's allowed claims. The Court also noted that the defendants' claims may be subordinated to some but not all unsecured claims.