IN RE BANK OF NEW ENGLAND CORP.

No. 03-1321.

364 F.3d 355 (2004)

In re BANK OF NEW ENGLAND CORP., Debtor. HSBC Bank USA and JPMorgan Chase Bank, as Indenture Trustees, Appellants, v. Dr. Ben S. BRANCH, Trustee in Bankruptcy, et al., Appellees.

United States Court of Appeals, First Circuit.

Decided April 13, 2004.


Attorney(s) appearing for the Case

Douglas B. Rosner, with whom Goulston & Storrs, Sarah L. Reid, Joseph N. Froehlich, Kelley Drye & Warren LLP, David S. Rosner, Daniel N. Zinman, and Kasowitz, Benson, Torres & Friedman LLP were on brief, for appellants.

Robin Russell, with whom Hugh M. Ray and Andrews Kurth LLP were on brief, for appellee Branch.

Patrick J. McLaughlin, with whom Katherine A. Constantine, Monica L. Clark, Dorsey & Whitney LLP, Dianne F. Coffino, and Dewey Ballantine LLP were on brief, for remaining appellees.

Before SELYA, Circuit Judge, COFFIN, Senior Circuit Judge, and SMITH, District Judge.


SELYA, Circuit Judge.

This is a case that straddles a crossroads formed by the intersection of federal and state law. It requires us to decide an issue of first impression in this circuit regarding the enforceability in bankruptcy of agreements that allow the subordination of certain indebtedness. Our decision partially contradicts the decision of the only other court of appeals to have grappled with this same set of questions, see Chem. Bank v. First Trust of...

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