Case 2 6 cbi holding company

Its cadre came in soon after activation date, non-commissioned officers from the 88th Chemical Bn at Camp Rucker, Ala. Trainees who were to comprise the bulk of the organization were slow in arriving, and it was not until April 3 that enough men had arrived for the battalion to begin basic training. By this time Maj.

Case 2 6 cbi holding company

United States District Court, S.


Arthur Steinberg, Robert B. Lifland, Judge in an adversary proceeding. For the reasons set forth below, the Court affirms in part and reverses in part the decision of the bankruptcy court. The Court does not now remand this action to the bankruptcy court, but rather orders the parties to submit additional briefing.

CBI achieved its size during the early s by pursuing a strategy of growth through acquisition. CBI financed its acquisitions in two ways. First, CBI borrowed capital from a bank syndicate through a series of lending agreements.


The lending agreements limited the amount of money that CBI could borrow, based on a formula dependent upon the inventory and accounts receivable of each CBI subsidiary.

The greater the inventory and accounts receivable that conformed to certain eligibility requirements, the more CBI could borrow, up to specified limits.

As a result of the May investment, TCW acquired various rights, which are set forth in a shareholders agreement dated May 31, the "Shareholders Agreement"and a securities purchase agreement dated May 13, the "Securities Agreement".

With that share of ownership, Castello had the right to select the remaining members of the board of directors and the audit committee. TCW had the right to accelerate payment on its notes, pursuant to the Securities Agreement, in the event of a failure by CBI to comply in any material respect with certain covenants in the Securities Agreement.

Castello received a bonus for fiscal year that was tied to fiscal year earnings. Castello also caused a portion of his bonus for fiscal year to be paid to him before it was due.

Schein, dated October 17, filed in 96 Civ. In that order, the bankruptcy court appointed Bankruptcy Services, Inc. The Plan also provided that Debtors "shall be deemed to have waived and released any and all claims BSI brought each of these claims as assignee of the claims of Debtors.

By order dated November 13, the " Order"the Court denied that motion, concluding that the Adversary Proceeding qualified as a "core" proceeding under 28 U. While that motion was pending, two other orders relevant to this appeal were issued.

Case 2 6 cbi holding company

First, the bankruptcy court issued an order in May that, inter alia, bifurcated the trial on liability from the determination of damages. See Order, Finally, the Court concluded that, to the extent the parties were protected by the Seventh Amendment, the bankruptcy court could conduct a jury trial without the consent of the parties.

After a bench trial on the issue of liability, the bankruptcy court issued its April 5, decision and granted "judgment" for CBI "on all remaining counts.

A court reviews mixed questions of fact and law de novo. See In re Vebeliunas, F. And, seventh, it argues that the bankruptcy court erred in its determination of damages.

The Court declines to entertain a complete reargument of the jurisdictional issue. The Court does, however, take this opportunity to reiterate and further explain its reasons for determining that the CBI claims and the TCW claims are core.


Bankruptcy judges may hear non-core proceedings "that [are] otherwise related to a case under title 11" but, absent consent of the parties, may only recommend findings of fact and conclusions of law, which are subject to de novo review by a district court.

Marathon Pipe Line Co. In Marathon, the Supreme Court struck down portions of the Bankruptcy Act and held that only Article III judges can adjudicate legal disputes that are not "at the core of the federal bankruptcy power.

The Supreme Court ruled specifically that Congress could not constitutionally give a bankruptcy court "the authority to adjudicate a state breach-ofcontract action, based on a pre-petition contract, brought by a debtor against a defendant that had not filed a claim with the bankruptcy court.

Congress enacted 28 U. Section provides a non-exclusive list of core proceedings, which includes, inter alia, matters concerning the administration of the estate, allowance or disallowance of claims against the estate, counterclaims by the estate against persons filing claims against the estate, and other proceedings affecting the liquidation of the assets of the estate or the adjustment of the debtorcreditor relationship.

Both the Second Circuit and the Supreme Court "have concluded that the Marathon holding was a narrow one and have broadly construed the jurisdictional grant" in 28 U. However, "[a] general rule that In the context of evaluating whether contract[3] actions are core proceedings, the Second Circuit has stated that the determination depends on " 1 whether the contract is antecedent to the reorganization petition; and 2 the degree to which the proceeding is independent of the reorganization.

See In re Petrie Retail, Inc. Similarly, the greater the degree of independence between the reorganization and a particular cause of action, the less likely it is that the action will be deemed core.View Homework Help - Case Study CBI Holding Company, Inc. from ACCT at Dallas Baptist University.

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April 23rd was a heck of a day for shareholders in both Chicago Bridge & Iron (NYSE:CBI) and McDermott International (NYSE:MDR).When news broke that a .

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