IN RE FELT MFG. CO., INC.

Bankruptcy No. 05-13724-JMD. Adversary No. 06-1171-JMD.

371 B.R. 589 (2007)

2007 BNH 027

In re FELT MANUFACTURING CO., INC., f/k/a Foss Manufacturing Co., Inc., Debtor. Official Committee of Unsecured Creditors, on behalf of the bankruptcy estate of Felt Manufacturing Co., Inc., f/k/a Foss Manufacturing Co., Inc., Plaintiff, v. Stephen Foss, Patricia Foss, Jenifer Foss Smyth, Kevin Sexton, Douglas Kinney, Marcella Darling, John Smyth, Dennis Foss, David Rowell, Foss Family LLC I, Foss Family LLC II, Foss Realty, Inc., Business Helicopters, Inc., f/k/a New Hampshire Helicopters, Inc., Foss Family 2004 Irrevocable Trust, and Custom Travel of New Hampshire, Inc., Defendants.

United States Bankruptcy Court, D. New Hampshire.

July 27, 2007.


Attorney(s) appearing for the Case

Robert J. Feinstein, Esq., Beth E. Levine, Esq., Gillian N. Brown, Esq., Pachulski Stang Ziehl Young Jones & Weintraub LLP, New York, NY, Joseph A. Foster, Esq., Cheryl C. Deshaies, Esq., McLane, Graf, Raulerson & Middleton, P.A., Manchester, NH, for Plaintiff.

Bruce A. Harwood, Esq., Sheehan, Phinney, Bass + Green, Manchester, NH, Sean T. Carnathan, Esq., O'Connor, Carnathan and Mack LLC, Burlington, MA, for Defendants Stephen Foss, Foss Family LLC I, Foss Family LLC II, Foss Realty, Inc., and Business Helicopters, Inc.

Paul D. Moore, Esq., Jennifer L. Hertz, Esq., Michael R. Gottfried, Esq., Duane Morris LLP, Boston, MA, for Defendants Patricia Foss, Jenifer Foss Smyth, John Smyth, and Foss Family 2004 Irrevocable Trust.

William S. Gannon, Esq., William S. Gannon PLLC, Manchester, NH, for Douglas Kinney.

Daniel W. Sklar, Esq., Nixon Peabody LLP, Manchester, NH, for Dennis Foss.

Meghan M. Hart, Esq., Kevin J. Lesinski, Esq., William J. Hanlon, Esq., Seyfarth Shaw, Boston, MA, Michael S. Askenaizer, Esq., Law Offices of Michael S. Askenaizer, PLLC, Nashua, NH, for Defendant David Rowell.

Edmond J. Ford, Esq., Ford, Weaver & McDonald, P.A., Portsmouth, NH, for Kevin Sexton.

Karyn P. Forbes, Esq., Shaheen & Gordon, P.A., Concord, NH, for Marcella Darling.


MEMORANDUM OPINION

J. MICHAEL DEASY, Bankruptcy Judge.

I. INTRODUCTION

The Official Committee of Unsecured Creditors (the "Committee" or the "Plaintiff') appointed in the chapter 11 case of Felt Manufacturing Co., Inc., f/k/a Foss Manufacturing Co., Inc. ("FMC" or the "Debtor"), acting on behalf of the chapter 11 estate of the above-captioned debtor, filed a fifty-one count complaint...

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