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IN RE THE COLONIAL BANCGROUP, INC.

No. 09-32303-DHW.

436 B.R. 695 (2010)

In re THE COLONIAL BANCGROUP, INC., Debtor.

United States Bankruptcy Court, M.D. Alabama.

June 25, 2010.

Attorney(s) appearing for the Case

C. Edward Dobbs , Rufus T. Dorsey, IV , Parker, Hudson, Rainer & Dobbs, LLP, Atlanta, GA, W. Clark Watson , Balch & Bingham LLP, Birmingham, AL, for Debtor.

Richard D. Shinbaum , Montgomery, AL, for Respondents.

MEMORANDUM OPINION

DWIGHT H. WILLIAMS, JR., Bankruptcy Judge.

The Colonial BancGroup, Inc. ("debtor") filed a motion for authority to exercise ownership rights over assets held in a deferred compensation plan (Doc. #255). The motion is opposed by twenty-one employees of the debtor and its subsidiary, Colonial Bank, who contributed to the plan.1 An evidentiary hearing was held on April 15, 2010.

At issue is whether the...

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