IN RE M. FABRIKANT & SONS, INC.

Bankruptcy Nos. 06-12737 (SMB), 06-12739(SMB). Adversary No. 07-02780.

394 B.R. 721 (2008)

In re M. FABRIKANT & SONS, INC., et al., Reorganized Debtors. The Official Committee of Unsecured, Creditors of M. Fabrikant & Sons, Inc.; and Fabrikant-Leer, International, Ltd., Plaintiff, v. JP Morgan Chase Bank, N.A.; ABN Amro Bank N.V.; Bank of America, N.A.; HSBC Bank USA, National Association; Bank Leumi USA; Israel Discount Bank of New York; Antwerpse Diamantbank, N.V.; Sovereign Precious Metals, Llc; and Sovereign Bank, Defendants.

United States Bankruptcy Court, S.D. New York.

October 10, 2008.


Attorney(s) appearing for the Case

Susman Godfrey LLP, Stephen D. Susman, Esq., Jacob W. Buchdahl, Esq., Jonathan J. Ross, Esq., of Counsel, New York, NY, Attorneys for the Official Committee of Unsecured Creditors.

Hahn & Hessen LLP, Steven J. Mandelsberg, Esq., Joshua I. Divack, Esq., Charles Loesner, Esq., of counsel, New York, NY, Attorneys for JPMorgan Chase Bank, N.A.

Cadwalader, Wickersham & Taft LLP, Evan R. Fleck, Esq., Gregory M. Petrick, Esq., Ingrid Bagby, Esq., Peter M. Friedman, Esq., of counsel, New York, NY, Attorneys for ABN Amro Bank N.V.

Reimer & Braunstein LLP, Paul S. Samson, Esq., Meegan B. Casey, Esq., Jeffrey D. Ganz, Esq., of counsel, Boston, MA, Attorneys for Bank of America, N.A.

Phillips Lytle LLP, William J. Brown, Esq., Paul K. Stecker, Esq., Allan L. Hill, Esq., of counsel, New York, NY, Attorneys for HSBC Bank USA.

Herrick, Feinstein LLP, Andrew C. Gold, Esq., Frederick E. Schmidt, Esq., of counsel, New York, NY, Attorneys for Bank Leumi USA.

Heller Ehrman LLP, Timothy Mehok, Esq., Erin McMurray-Killelea, Esq., Andrew Levine, Esq., of counsel, New York, NY, Attorneys for Israel Discount Bank of New York.

Cullen And Dykman LLP, Matthew G. Roseman, Esq., Matthew D. Brown, Esq., of counsel, Garden City, NY, Attorneys for Antwerpse Diamantbank, N.V.

Milbank, Tweed, Hadley & McCloy LLP, Douglaw W. Henkin, Esq., Wilbur F. Foster, Jr., Esq., Robert R. Miller, Esq., Alan J. Stone, Esq., of counsel, New York, NY, Attorneys for Sovereign Precious Metals, LLC and Sovereign Bank.


MEMORANDUM DECISION AND ORDER GRANTING IN PART AND DENYING IN PART MOTIONS TO DISMISS COMPLAINT

STUART M. BERNSTEIN, Chief Judge:

This lawsuit arose out of the bankruptcy of M. Fabrikant & Sons, Inc. ("MFS") and Fabrikant-Leer International, Ltd. ("FLI," and collectively with MFS, the debtors or "Fabrikant"). In the main, the Amended Complaint, dated March 27, 2008 (ECF Doc. # 54), seeks to avoid...

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