Metropolitan Cooperative Association and Metropolitan Cooperative Association, Reorganized

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
METROPOLITAN COOPERATIVE
ASSOCIATION,
Debtor.
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Case No. 08-00527
(Chapter 11)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION (SUPPLEMENTING ORAL DECISION) AND
ORDER RE MOTION TO DISALLOW CLAIM OF M Y NEW HAMPSHIRE, LLC
The court held a hearing on the Motion of Metropolitan
Cooperative Association to Disallow Claim of M Y New Hampshire,
LLC. 	As recited at the hearing, the claim should be allowed in a
substantial amount in excess of the allowed secured claim of M Y
New Hampshire, LLC of $8,500,000, with the result that M Y New
Hampshire, LLC has an allowed secured claim of $8,500,000 and an
allowed unsecured claim in a substantial amount. 	The court
further found that it is unnecessary to fix precisely the amount
of the substantial allowed unsecured claim because, in exchange
for that claim and for substantial capital contributions to the
debtor, M Y New Hampshire, LLC is receiving, under the plan being
confirmed, ownership of the debtor, whose assets (other than
The document below is hereby signed.
Signed: June 01, 2009.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
Case 08-00527 Doc 262 Filed 06/02/09 Entered 06/02/09 09:37:37 Desc Main
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certain causes of action of unascertained value being passed to
members of the debtor) were worth less than the amounts of the
allowed claims in the case other than M Y New Hampshire, LLC’s
allowed unsecured claim. 	In other words, even disregarding M Y
New Hampshire, LLC’s allowed unsecured claim, there is no equity
in the debtor’s assets: there is no value of such assets in
excess of allowed claims in the case, or even in excess of the
value of the amounts being paid on those claims. 	The debtor’s
members’ interests, as the equity interests in the case, are
junior to the interests of holders of claims that exceed the
value of the estate’s assets. 	The plan properly provides that
the debtor’s members, as the holders of the equity interests in
the case, are not entitled to receive or retain anything on
account of their interests (other than certain causes of action
that M Y New Hampshire, LLC consented to their receiving). 	The
precise amount of the substantial allowed unsecured claim of M Y
New Hampshire, LLC, would thus not affect the outcome of the
case, and the court cannot foresee the issue of that precise
amount becoming pertinent at any juncture in this case. 	It is
thus
ORDERED that the claim of M Y New Hampshire, LLC, be and the
same hereby is allowed in a substantial amount in excess of
$8,500,000, with $8,500,000 of the claim constituting an allowed
secured claim, and with the amount exceeding the $8,500,000
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allowed secured claim constituting an allowed unsecured claim in
a substantial amount. 	It is further
ORDERED that the issue of fixing precisely the substantial
amount of the allowed unsecured claim of M Y New Hampshire, LLC,
is dismissed as moot, without prejudice to adjudication of the
precise amount of the allowed unsecured claim should that ever
become pertinent.
[Signed and dated above.]
Copies to: Debtor; Debtor’s attorney; Aryeh Stein, Esq.; Richard
W. Luchs, Esq.; Office of United States Trustee.
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