In re Insilco Technologies, Inc.’s Empirical Analysis

Citation profile

4 federal appellate · 1 district ·

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 19 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “An action for equitable subordination does not challenge the existence or validity of the underlying debt. Rather, it challenges granting the debt the priority to which it is entitled under applicable law because of the creditor’s inequitable conduct. In re SubMicron Sys., 432 F.3d [448] at 454 [ (3rd Cir.2006) ] (“Equitable subordination is apt when equity demands that the payment priority of claims of an otherwise legitimate creditor be changed to fall behind those of other claimants.”). Thus, it is an action in equity to modify the legal treatment of the claim.”

   2 later decisions quote this exact passage · from the majority
   e.g. North Central Pennsylvania Regional Planning & Development Commission v. Eckert (In re Watson) · Spradlin v. E. Coast Miner, LLC (In re Licking River Mining, LLC)

2. “While we typically think of Chapter 11 as the “reorganization” section of the Bankruptcy Code (as opposed to Chapter 7, the “liquidation” section), it is not uncommon for debtors to use the Chapter 11 process to liquidate. This is because Chapter 11 provides more flexibility and control in determining how to go about selling off the various aspects of the debtor’s business and distributing the proceeds. A typical mechanism for effecting a Chapter 11 liquidation is the creation of a “liquidating trust” — a state-law trust managed by a group of creditors that succeeds to the debtor’s assets and administers the liquidation and distribution process.”

   1 later decision quote this exact passage · from the majority
   e.g. Burtch v. Ganz (In Re Mushroom Transportation Co.)

3. “In the Bankruptcy Code, the distinction between creditors (who hold “claims” against the estate) and equity investors (who hold “interests” in the estate) is important, for holders of claims receive much more favorable treatment than holders of interests. Equity investment brings not a right to payment, but a share of ownership in the debtor’s assets—a share that is subject to all of the debtor’s payment obligations. Thus, if a filed claim is rejected on the ground that it is not a claim at all, but an interest, then the holder of that interest is relegated to the end of the line, where any recovery is unlikely.”

   1 later decision quote this exact passage · from the majority
   e.g. In re the Merit Group, Inc.