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Bankruptcy Litigation

Open Questions Regarding Disallowance Under Section 502(d)

The intra-district divide in the Southern District of New York continued to deepen on the issue of whether claims disallowance under section 502(d) of the Bankruptcy Code applies to the claim or to the claimant.

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The intra-district divide in the Southern District of New York continued to deepen on the issue of whether claims disallowance under section 502(d) of the Bankruptcy Code applies to the claim or to the claimant, with the recent decision from a S.D.N.Y. bankruptcy court disagreeing with the S.D.N.Y. district court decision in In re Enron Corp., 379 B.R. 425 (S.D.N.Y. 2007) (Enron II). See, In re Firestar Diamond, Inc., 2020 WL 1934896, — B.R. — (Bankr. S.D.N.Y. Apr. 22, 2020) (Firestar).

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