IN RE FLAG TELECOM HOLDINGS LTD

Bankruptcy Nos. 02-11732 to 02-11736, 01-11975 to 02-11979. Adversary No. 03-06712.

320 B.R. 763 (2005)

In re FLAG TELECOM HOLDINGS LIMITED, Flag Limited, Flag Pacific USA Limited, Flag Telecom Group Services Limited, Flag Telecom USA Ltd., Flag Asia Limited, Flag Atlantic Holdings Limited, Flag Atlantic Limited, Flag Atlantic USA Limited, Debtors. Flag Telecom Group Limited, Flag Asia Limited, Flag Telecom Asia Limited, Flag Telecom Taiwan Limited and Flag Telecom Japan Limited, Plaintiffs, v. Kensington International, Ltd., Springfield Associates, LLC, Elliott Associates, L.P., Elliott International, L.P., Wilmington Trust Company, and the Bank of New York, Defendants.

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

February 10, 2005.


Attorney(s) appearing for the Case

Gibson, Dunn, & Crutcher LLP, By Craig H. Millet, Esq., Alison C. Gooding, Esq., Michelle M. Craven, Esq., New York, for the Plaintiffs/Debtors.

Kleinberg, Kaplan, Wolff & Cohen, P.C., By David Parker, Esq., Edward P. Grosz, Esq., New York, for Defendants: Kensington International, Ltd.; Springfield Associated, LLC; Elliott Associates, L.P. and Elliott International, L.P.


MEMORANDUM OF DECISION

ALLAN L. GROPPER, Bankruptcy Judge.

On August 3, 2003, the above-captioned plaintiffs (collectively the "Companies") filed this adversary proceeding seeking a declaratory judgment that they were not in default on a Note issued under the confirmed Plan of Reorganization of the principal obligor, FLAG Asia Limited ("FLAG Asia"). The Note was originally issued to a major creditor, Alcatel Submarine Networks, S.A. ("Alcatel"). On April...

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