IN RE WAGSTAFF MINNESOTA, INC.

Bankruptcy No. 11-43073.

In re: Wagstaff Minnesota, Inc., et al., Chapter 11 Bankruptcy, Debtors. KFC Corporation, Appellant, v. Wagstaff Minnesota, Inc. et al., Official Committee of Unsecured Creditors of Wagstaff Minnesota, Inc. et al., General Electric Capital Corporation et al., Appellees.

United States District Court, D. Minnesota.

January 3, 2012.


Attorney(s) appearing for the Case

Robert C. Goodrich, Jr., Esq. , and Erika R. Barnes, Esq. , Stites & Harbison PLLC, and Kenneth Corey-Edstrom, Esq. , Larkin Hoffman Daly & Lindgren Ltd., appeared for Appellant.

Scott F. Gautier, Esq. , Peitzman, Weg & Kempinsky LLP, and Sarah M. Gibbs, Esq. , Fredrikson & Byron, PA, appeared for Appellees Wagstaff Minnesota, Inc. et al.

Deborah C. Swenson, Esq. , Lommen, Abdo, Cole, King & Stageberg, PA, appeared for Appellees Official Committee of Unsecured Creditors of Wagstaff Minnesota, Inc. et al.

Susan G. Boswell, Esq. , Quarles & Brady LLP, and Ralph V. Mitchell, Jr., Esq. , Lapp, Libra, Thomson, Stoebner & Pusch, Chartered, appeared for Appellees General Electric Capital Corporation et al.


ORDER Jointly Administered

JOAN N. ERICKSEN, District Judge.

KFC Corporation (KFCC) appeals a final order of the United States Bankruptcy Court for the District of Minnesota. Appellees (Debtors) join together in opposition. For the reasons set forth below, the Court reverses the decision of the bankruptcy court.

I. BACKGROUND

Debtors own and operate 77 restaurants (Outlets) as KFCC franchisees. Debtors defaulted on their original franchise...

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