The Adelphia Recovery Trust, an entity created to represent the non-whole creditors of a debtor corporation that is party to a bankruptcy proceeding described below, appeals from Judge McKenna’s grant of summary judgment dismissing its fraudulent conveyance claim against Goldman, Sachs & Co. In such a fraudulent conveyance claim, the Trust may recover only property owned by the parent-company debtor. The various schedules and Chapter 11 plan, which were consummated with the agreement of appellant and its predecessors in interest in the bankruptcy proceeding, all treated the property transferred as owned by a separate subsidiary. We, therefore, affirm on grounds of judicial estoppel.
Adelphia Communications Corp. (“ACC”) was the parent company of some 200 holding and operating subsidiaries (collectively, “Adelphia”). At its peak, Adelphia formed the fifth-largest cable company in the United States. ACC, at all relevant times a publicly traded company, was founded by John Rigas in 1986, and members of the Rigas family held several top positions at ACC. After ACC disclosed that it had several billion dollars in fraudulently concealed, off-balance-sheet debt, Rigas family members were forced to resign from their positions and faced various civil and criminal actions. See, e.g., United States v. Rigas, 490 F.3d 208 (2d Cir. 2007).
Judge(s): Ralph Winter
Jurisdiction: U.S. Court of Appeals, Second Circuit
Related Categories: Civil Procedure , Finance / Banking , Property , Torts
|Circuit Court Judge(s)|
|John Walker, Jr.|
|Trial Court Judge(s)|
|Plaintiff Lawyer(s)||Plaintiff Law Firm(s)|
|David Friedman||Kasowitz Benson Torres & Friedman LLP|
|Michael Harwood||Kasowitz Benson Torres & Friedman LLP|
|Howard Schub||Kasowitz Benson Torres & Friedman LLP|
|Defendant Lawyer(s)||Defendant Law Firm(s)|
|Melvin Brosterman||Stroock & Stroock & Lavan LLP|
|Francis Healy||Stroock & Stroock & Lavan LLP|
|Claude Szyfer||Stroock & Stroock & Lavan LLP|