Bankr. No.:
03-10194
Adv. No.:
05-1006
Chapter:
7
Date of Decision:
May 4, 2005
Issue:
Whether the movant, an equity holder in a Chapter 7 debtor, should be allowed to intervene in an adversary proceeding where the Chapter 7 Trustee has asked the Court to declare that another equity holder’s post-petition, pre-conversion loans and advances to the Chapter 11 debtor should be considered an equity contribution or subordinated to other claims?
Ruling:
The motions to intervene were denied. The trustee would adequately protect the movant-equity holder’s interest by insuring that the other equity holder’s claim was paid only in the correct amount and in the correct order of priority. The Court advised the parties it would not alter the present equity positions in the debtor through the pending adversary.
Full Bankruptcy Court Decision:
