IN RE BUSH INDUSTRIES, INC.

No. 04-12295 B.

315 B.R. 292 (2004)

In re BUSH INDUSTRIES, INC., Debtor.

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

September 16, 2004.


Attorney(s) appearing for the Case

Hodgson Russ LLP (Garry M. Graber, of counsel, Julia S. Kreher, of counsel, Stephen L. Yonaty, of counsel), Buffalo, NY, for Debtor.

Nixon Peabody LLP (William S. Thomas, Jr., of counsel, Gregory J. Mascitti, of counsel), Rochester, NY, for JP Morgan Chase Bank as Agent to the Debtor's Secured Lenders.

Akin Gump Strauss Hauer & Feld LLP (Michael S. Stamer, of counsel, Abid Qureshi, of counsel, Tess H. Autrey, of counsel), New York City, for DDJ Capital Management.

Kronish Lieb Weiner & Hellman LLP (John A. Morris, of counsel, Lawrence C. Gottlieb, of counsel, Eric J. Haber, of counsel, Scott J. Pashman, of counsel), New York City, for The Official Committee of Equity Security Holders.


CARL L. BUCKI, Bankruptcy Judge.

The officers and directors of a corporation owe a fiduciary obligation to shareholders. This obligation continues even in the context of bankruptcy, and demands an equality of treatment as among all owners of the company. The bankruptcy process allows no room for self-dealing by officers and directors of a publicly traded enterprise. In the instant case, where unsecured creditors are to paid...

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