2014 Judge Wizmur - Opinions

Judge Judith H Wizmur -- Opinions signed in 2014

In re Mount Olive Hospitality, Case 12-32781  5/16/2014

A secured creditor challenged the claims scheduled by the Chapter 11 debtor as held by alleged promissory note holders.  The movant asserted that the claims were held by insiders and to the extent that they were liabilities of the debtor sought to recharacterize the debt as an equity contribution.  The creditor also challenged the inclusion of trade debt in the debtor's schedules.  The court determined that all but one of the claimants were not insiders for purposes of the Bankruptcy Code.  Due to technical errors and other discrepancies, the court declined to rely on the physical notes as evidence of the existence of the loans.  Reviewing each claim individually, the court granted in part and denied in part the objections to the alleged note holders.  The court granted the creditor's motion to challenge the trade debt.