IN RE BANK OF NEW ENGLAND CORP.

No. 10-1456.

646 F.3d 90 (2011)

In re BANK OF NEW ENGLAND CORPORATION, Debtor. HSBC Bank USA, National Association, as Indenture Trustee and as Successor Indenture Trustee to JP Morgan Chase Bank, f/k/a The Chase Manhattan Bank, as Indenture Trustee, Appellant, v. Bank of New York Mellon Trust Company, National Association, as Indenture Trustee; U.S. Bank, National Association, as Indenture Trustee; Dr. Ben S. Branch, Chapter 7 Trustee for Bank of New England Corporation, Appellees.

United States Court of Appeals, First Circuit.

Decided June 23, 2011.


Attorney(s) appearing for the Case

Charles J. Cooper with whom Michael W. Kirk , Jesse Panuccio , Sarah L. Reid , Alison L. MacGregor , Douglas B. Rosner , Cooper and Kirk, PLLC, Kelley Drye & Warren LLP, and Goulston & Storrs, P.C., were on brief for appellant.

Dianne F. Coffino for Bank of New York and Patrick J. McLaughlin for U.S. Bank with whom C. William Phillips , Robert M. Hemm , Katherine A. Constantine , Todd Pearson , Pamela Foohey , Covington & Burling LLP, and Dorsey & Whitney LLP were on brief for appellees.

Before TORRUELLA, STAHL and HOWARD, Circuit Judges.


STAHL, Circuit Judge.

HSBC Bank USA, N.A. appeals, for the second time, a district court judgment that affirmed a bankruptcy court's authorization of a distribution of assets from the estate of Bank of New England Corporation ("BNEC") to holders of BNEC junior debt. The parties agree that the holders of the senior debt are entitled to priority payment of their principal along with pre-petition interest—that is, interest that accrued up until the filing of BNEC...

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