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IN RE 1031 TAX GROUP, LLC

Bankruptcy No. 07-11448 (MG). Adversary No. 09-01218(MG).

420 B.R. 178 (2009)

In re the 1031 TAX GROUP, LLC Debtor. Gerard McHale, Jr., not individually but Solely in his capacity as Chapter 11 trustee for the 1031 Tax Group, LLC, et al., Plaintiff, v. Citibank, N.A., Defendants.

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

December 3, 2009.

Attorney(s) appearing for the Case

Sidley Austin LLP, Chicago, IL, by Mark B. Blocker, (argued), Sidley Austin LLP, New York, NY, by Lee Stein Attanasio, Michael G. Burke, Sidley Austin LLP, Washington, D.C., by John K. Van De Weert, for Defendant Citibank, N.A.

Golenbock, Eiseman, Assor Bell & Peskoe LLP, New York, NY, by David J. Eiseman, (argued), Jonathan L. Flaxer, Jacqueline G. Veit, Michael S. Devorkin, for the Chapter 11 Trustee.

OPINION & ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND

MARTIN GLENN, Bankruptcy Judge.

Pending before the Court is Citibank, N.A.'s ("Citibank") Motion to Dismiss or, in the Alternative, to Stay the Complaint filed by Gerard A. McHale, the Chapter 11 Trustee ("Trustee") of The 1031 Tax Group, LLC and its related affiliates ("Debtors" or "1031 Debtors"). The Trustee alleges that Citibank aided and abetted...

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