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Expert Analysis

Validating A Holder's Right To Elect Ch. 7 Trustee

Law360, New York (August 16, 2012, 7:30 PM EDT) -- In a recent contested matter in the case Home Valley Bancorp. Inc., Case No. 11-65126-fra7, pending in the U.S. Bankruptcy Court for the District of Oregon, the Bankruptcy Court validated the vote and election of a Chapter 7 trustee candidate by a security holder where (a) the indenture trustee for the debt issue declined to exercise its right under the Indenture to vote for a Chapter 7 trustee, (b) the security holder acted openly and actively with respect to the election of its Chapter 7 trustee candidate, and (c) the indenture trustee did not object to such actions by the security holder....

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