IN RE MCORP FINANCIAL, INC.

Civ. A. H-93-395.

160 B.R. 941 (1993)

In re MCORP FINANCIAL, INCORPORATED, MCorp Management, and MCorp, Debtors.

United States District Court, S.D. Texas.

October 1, 1993.


Attorney(s) appearing for the Case

Philip D. Anker, Wilmer Cutler & Pickering, Washington, DC, for Shearson Lehman Bros. Inc.

Allan Brent Diamond, Hughes & Luce, Houston, TX, Karen K. Suhre, Hughes & Luce, LLP, Dallas, TX, Steven Mark Zager, Weil Gotshal & Manges, Houston, TX, for MCorp Management, MCorp. Financial, Inc.

Allan Brent Diamond, Hughes & Luce, Houston, TX, Karen K. Suhre, Hughes & Luce, LLP, Dallas, TX, Steven Mark Zager, D.J. Baker, Melanie Gray, Marta Andrews, Wendy Laubach, Weil Gotshal & Manges, Houston, TX, for MCorp.

Robert J. Clary, Owens Clary & Aiken, Dallas, TX, for Bank One Texas.

Ernest John Flowers, Law Offices of John Flowers, Earl A. Berry, Jr., Raymond LaDriere, II, Locke, Purnell, Rain, Harrell, Dallas, TX, for Principal Mut. Life Ins. Co.

Mark S. Lieberman, Rosenthal & Schanfield, Chicago, IL, for Barre Seid.

Richel Rivers, Hilgers & Watkins, Austin, TX, for Corpus Christi Nat. Bank.

Brooke E. Smith, Leonard Marsh Hurt Terry & Blinn, Houston, TX, William Frank Carroll, Donohoe Jameson & Carroll, Jeffrey W. Hurt, Terry Gorman, David A. Ives, Leonard Marsh Hurt Terry & Blinn, Ann C. Kenney, Leonard Marsh Hurt Terry & Blinn, Dallas, TX, for F.D.I.C.

Stephen A. Goodwin, Carrington Coleman Sloman & Blumenthal, Dallas, TX, for Ernst & Young.

Donald Joseph Christie, Kirkendall & Collins, Houston, TX, Robert J. Rosenberg, Latham & Watkins, New York City, for Official Committee of Unsecured Creditors of MCorp, MCorp Financial Inc. & MCorp Management.

Daniel Eustaquio, pro se, U.S. Bankruptcy Clerk, U.S. Bankruptcy Clerk's Office, Houston, TX, amicus.

Vernon O. Teofan, Jenkens & Gilchrist, P.C., Dallas, TX, for Ameritrust Texas, N.A.

Ruth H. Hunter, pro se.

Hayden Burns, M. Susan Hardie, Butler & Binion, Houston, TX, for Juniors.

Doug Little, Houston, TX, for Plaza Bank.

Kelly Dahlman, Thelen, Marin, Johnson & Bridges, Houston, TX, for D & O Insurers.

Sandra E. Mayerson, Jerome Meites, McDermott, Will & Emery, New York City, for Chemical Bank.


OPINION ON CONFIRMATION

HUGHES, District Judge.

1. Introduction.

After four years of complex bankruptcy litigation, the prospect of a vitalizing reorganization disappeared long ago. The debtors' estates are mere shells holding assets to distribute to their creditors. The debtors, creditors committee, and senior bondholders have proposed plans to liquidate those assets, without converting the case formally to a liquidation proceeding. A critical...

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