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IN RE GRANITE PARTNERS, L.P.

Bankruptcy Nos. 94 B 41683-94 B 41685, Adv. No. 96/9252A.

210 B.R. 508 (1997)

In re GRANITE PARTNERS, L.P., Granite Corporation, and Quartz Hedge Fund, Debtors. ABF CAPITAL MANAGEMENT, et al., Plaintiffs, v. KIDDER PEABODY & CO., INCORPORATED, Defendant.

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

July 16, 1997.

Attorney(s) appearing for the Case

Berlack, Israels & Liberman LLP for Plaintiffs New York City (Steven E. Greenbaum, Edward S. Weisfelner, of counsel), for Plaintiffs.

Cleary Gottlieb Steen & Hamilton, New York City (Thomas J. Moloney, Mitchell A. Lowenthal, Robin A. Henry, Carmine D. Boccuzzi, Jr., of counsel), for Kidder Peabody & Co., Inc.

MEMORANDUM DECISION DENYING MOTION TO DISMISS EQUITABLE SUBORDINATION COMPLAINT

STUART M. BERNSTEIN, Bankruptcy Judge.

The plaintiffs in this adversary proceeding have filed claims based upon securities and common law fraud in the Debtors' bankruptcy cases, but the Court has subordinated these claims pursuant to 11 U.S.C. § 510(b). See In re Granite Partners, L.P., 208 B.R. 332 (Bankr.S.D.N.Y.1997). Contending...

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