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KENTUCKY EMPLOYEES RETIRE. v. SEVEN COUNTIES SERV.

Nos. 16-5569/5644.

901 F.3d 718 (2018)

KENTUCKY EMPLOYEES RETIREMENT SYSTEM; Board of Trustees of Kentucky Retirement Systems, Appellants/Cross-Appellees, v. SEVEN COUNTIES SERVICES, INC., Appellee/Cross-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: August 24, 2018.

Attorney(s) appearing for the Case

United States Bankruptcy Court for the Western District of Kentucky at Louisville. No: 13-31442; Adv. Pro. 13-03019 — Joan A. Lloyd, Judge.

ARGUED: Tyson A. Crist , ICE MILLER LLP, Columbus, Ohio, for Appellants/Cross-Appellees. G. Eric Brunstad, Jr. , DECHERT LLP, Hartford, Connecticut, for Appellee/Cross-Appellant. ON BRIEF: Tyson A. Crist , Daniel R. Swetnam , Victoria E. Powers , ICE MILLER LLP., Columbus, Ohio, for Appellants/Cross-Appellees. G. Eric Brunstad, Jr. , DECHERT LLP, Hartford, Connecticut, David M. Cantor , SEILLER WATERMAN LLC, Louisville, Kentucky, Paul Hershberg , GRAY & WHITE, Louisville, Kentucky, for Appellee/Cross-Appellant.

STRANCH, J., delivered the opinion of the court, in which COLE, C.J., joined. McKEAGUE, J. (pp. 732-46), delivered a separate dissenting opinion.

OPINION

This case arises out of an attempt by Seven Counties Services, Inc., a nonprofit provider of mental health services, to rehabilitate its finances by filing for reorganization under Chapter 11 of the Bankruptcy Code. For decades, Seven Counties has participated...

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