KIT Digital Judge Says Ch. 11 Equity Rule Bests $15M Claim

Law360, New York (September 5, 2013, 3:21 PM EDT) -- A New York bankruptcy judge on Thursday said KIT Digital Inc. may subordinate a $15.5 million claim below all others because the claim arises from a securities purchase agreement, making it a lower priority than claims from other creditors.

U.S. Bankruptcy Judge Robert E. Gerber issued a written opinion granting the company partial summary judgment in its dispute against an Australian investment firm, Invigor Group Ltd., over whether the claim must be subordinated under Section 501(b) of the U.S. Bankruptcy Code. Though he had already approved...
To view the full article, register now.