IN RE LOTHIAN OIL INC.

No. 10-50683.

650 F.3d 539 (2011)

In the Matter of: LOTHIAN OIL INCORPORATED, Debtor. Israel Grossman, Appellee Cross-Appellant, Listokin Trust, Shorivger Trust, Akberali Khakee Pension Plan, Lothian Cassidy, L.L.C., Shoshana Trust, Deutsch-Sokol Trust, Anna Meisher Pension Plan, 731 895 866, L.L.C., Pension Solutions, L.L.C., Myg Trust, Herzberg Family Trust, Jessica Sokol, Cross-Appellants, v. Lothian Oil Incorporated, Jointly Administered Member Cases; Lothian Oil (USA) Inc., Lothian Oil Texas I, Inc., Lothian Oil Texas II, Inc., Lothian Oil Investments I, Inc., Lothian Oil Investments II, Inc., and LeaD I JVGP, Inc., Appellant Cross-Appellee.

United States Court of Appeals, Fifth Circuit.

August 9, 2011.


Attorney(s) appearing for the Case

Jessica M. Sokol , Sokol Law Group, New York City, for Appellees Cross-Appellants.

Mark R. Trachtenberg , Charles A. Beckham, Jr. , Haynes & Boone, L.L.P., Houston, TX, Maurice Ladale Brimmage, Jr. , Haynes & Boone, L.L.P., Dallas, TX, for Appellant Cross-Appellee.

Before JONES, Chief Judge, and HIGGINBOTHAM and SOUTHWICK, Circuit Judges.


EDITH H. JONES, Chief Judge:

This case reaches us after extensive litigation in the bankruptcy and district courts. It also brings a host of motions in its wake. One of the disputes—whether the bankruptcy court may recharacterize a claim as equity rather than debt—raises a novel question of law on which this court has yet to speak. The other assertions of error are without merit.

I.

The parties to this bankruptcy appeal have a business...

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