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IN RE SEVEN SEAS PETROLEUM, INC.

No. 07-20301.

522 F.3d 575 (2008)

In The Matter Of: SEVEN SEAS PETROLEUM, INC., Debtor. Highland Capital Management LP; ML CBO IV (Cayman) Ltd.; Pamco Cayman Limited; Pam Capital Funding LP; Famco Value Income Partners, LP; Famco Offshore Ltd., Appellants, v. Chesapeake Energy Corporation; Seven Seas Petroleum, Inc., Appellees.

United States Court of Appeals, Fifth Circuit.

March 31, 2008.

Attorney(s) appearing for the Case

Paul Brian Lackey, Michael Philip Aigen (argued), Jamie Ryan Welton, Lackey Hershman, Dallas, TX, for Appellants.

Paul E. Heath (argued), Thomas S. Leatherbury, Vinson & Elkins, Dallas, TX, for Chesapeake Energy Corp.

Randall A. Rios (argued), Munsch, Hardt, Kopf & Harr, Tony M. Davis, Baker Botts, Houston, TX, for Seven Seas Petroleum, Inc.

Before KING, DeMOSS and SOUTHWICK, Circuit Judges.

KING, Circuit Judge:

A secured creditor of a bankrupt corporation was sued by an unsecured creditor of the same corporation in state court and removed the claims against it to federal court, asserting that the claims were property of the bankruptcy estate and that the unsecured creditor had no right to assert them. The bankruptcy court agreed that the claims were property of the estate, denied the unsecured creditor's motion to remand, and dismissed the claims. The...

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