In a case of first impression, the U.S. Court of Appeals for the Third Circuit has ruled that a company’s status as a qualified subchapter S subsidiary, or QSub, is not property and, therefore, cannot be included as part of the company’s bankruptcy estate. The appellate court’s decision reversed the Delaware bankruptcy court’s ruling that allowed the owner of an Indiana casino to include its status as a QSub as part of the bankruptcy estate.
A three-judge panel composed of Judges Kent A. Jordan, Thomas L. Ambro and Thomas I. Vanaskie issued the 55-page opinion in Majestic Star Casino v. Barden Development.The decision remanded the case back to U.S. Bankruptcy Judge Kevin Gross of the District of Delaware to dismiss the case for lack of standing.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
