IN RE HECHINGER INVESTMENT CO. OF DELAWARE

Bankruptcy Nos. 99-2261 to 99-2283. Civ.A. No. 00-840-RRM.

274 B.R. 71 (2002)

HECHINGER INVESTMENT COMPANY OF DELAWARE, Debtor. Official Committee of Unsecured Creditors of Hechinger Investment Company of Delaware Inc., on behalf of Hechinger Investment Company of Delaware Inc., Plaintiff, v. Fleet Retail Finance Group, Chase, the Chase Manhattan Bank, and Back Bay Capital Funding, LLC, each individually and as agents for various banks party to credit agreements, John W. Hechinger, Leonard Green & Partners, L.P., Green Equity Investors II, L.P., John W. Hechinger, Jr., S. Ross Hechinger, Ann D. Jordan, Robert S. Parker, Melvin A. Wilmore, Alan J. Zakon, Kenneth J. Cort, W. Clark McClelland, June R. Hechinger, Nancy Hechinger Lowe, Sally Hechinger Rudoy, Catherine S. England, Richard England, Jr., June L.P., Lois Associates L.P., and Jarsan Associates L.P., Defendants.

United States District Court, D. Delaware.

February 20, 2002.


Attorney(s) appearing for the Case

Mark Minuti, Saul Ewing LLP, Wilmington, DE, David M. Frieman, David E. Ross, Andrew K. Glenn, Marvin C. Peguese, Kasowitz, Benson, Torres & Friedman LLP, New York City, for The Official Committee of Unsecured Creditors.

Kenneth J. Nachbar, James G. McMillan, III, Morris, Nichols, Arsht, & Tunnell, Wilmington, DE, Mitchell A. Karlan, Gibson, Dunn & Crutcher, New York City, for defendants John W. Hechinger Jr., S. Ross Hechinger, Ann D. Jordan, Robert S. Parker, Melvin A. Wilmore, Alan J. Zakon, Kenneth J. Cort, W. Clark McClelland, June R. Hechinger, Nancy Hechinger Lowe, Sally Hechinger Rudoy, June L.P., Jarsan Associates LP, and John W. Hechinger.

Martin S. Lessner, Brendan Shannon, Young, Conaway, Stargatt & Taylor LLP, Wilmington, DE, Lawrence S. Robbins, Arnon D. Siegel, Kathryn S. Zecca, Robbins, Russell, Englert, Orseck & Untereiner LLP, Washington, D.C., Phillip D. Anker, Joshua R. Stebbins, Wilmer, Cutler, & Pickering, Washington, D.C., for Catherine S. England, Richard England, Jr., and Lois Associates, L.P.


MEMORANDUM OPINION

McKELVIE, District Judge.

This is a bankruptcy adversary proceeding raising claims for fraudulent conveyance, breach of fiduciary duty, unjust enrichment, and equitable subordination. All the claims arise from a series of transactions that culminated in the leveraged buyout ("LBO") of the Debtor, Hechinger Company. The suit is brought by the Official Committee of Unsecured Creditors of Hechinger Investment Company of Delaware and its affiliated...

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