IN RE KB TOYS INC.

No. 13-1197.

736 F.3d 247 (2013)

In re KB TOYS INC., et al., Debtors. ASM Capital, L.P.; and ASM Capital II, LLP, Appellants.

United States Court of Appeals, Third Circuit.

Filed: November 15, 2013.


Attorney(s) appearing for the Case

Matthew B. McGuire, Esq. [argued], Landis, Rath & Cobb, Wilmington, DE, for Appellant.

Susan F. Balaschak, Esq. [argued], Akerman Senterfitt LLP, John H. Knight, Esq. , Andrew C. Irgens, Esq. , Richards, Layton & Finger, P.A., Wilmington, DE, for Appellee.

Before: CHAGARES, VANASKIE, and SHWARTZ, Circuit Judges.


OPINION OF THE COURT

SHWARTZ, Circuit Judge.

I.

This appeal arises out of the Chapter 11 liquidation of KB Toys Inc. and affiliated entities (the "Debtors"). Pursuant to 11 U.S.C. § 502(d), the Residual Trustee of the KBTI Trust1 sought to disallow certain trade claims that ASM Capital, L.P., and ASM Capital II, LLP, (together, "ASM") obtained from some of the creditors. Under § 502(d), a bankruptcy claim...

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