Court Rules In Long-Running Trace Intl. Appeal

Law360, New York (June 26, 2009, 12:00 AM EDT) -- A district judge has ruled that a bankruptcy court abused its discretion by judicially estopping the Chapter 7 trustee for Trace International Holdings Inc. from classifying payments from Trace to Dow Chemical Inc. stemming from a loan and stock transaction as dividends rather than liabilities.

Judge Kimba Wood of the U.S. District Court for the Southern District of New York signed off on an opinion and order on Thursday holding that the positions taken by Trace International Chapter 7 Trustee John S. Pereira in the dispute...
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