In re Westek Georgia, LLC (Ch. 11 Case No. 03-55298, Adv. No. 04-05058)

The Chapter 11 debtor contended that the defendants' secured claims should be equitably subordinated to the claims of all other creditors. 11 U.S.C.A. ยง 510(c). The debtor contended that the defendants were insiders or fiduciaries for purposes of establishing the standard and burden of proof. The debtor also contended that the defendants' claims should be treated as stock redemption claims subject to no fault subordination. The court rejected both of the debtor's contentions.

Thursday, October 6, 2005