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In re S&R Construction Co., Inc. (Case No. 09-70710) 03/13/2013

The court was asked to clarify or amend its previous order concerning a derivative proceeding.  The court noted that a Virginia corporation owns the rights to assert causes of action, a trustee succeeds to those rights when a corporation files bankruptcy, the rights become assets of the estate, and the trustee can then sell (or abandon pursuant to 11 U.S.C. § 554) those assets when administering the estate.  The court concluded that it had the authority to order abandonment and that the order that was entered specifically abandoned the right to prosecute the derivative suit to one of the shareholders, reserving only a portion of the potential proceeds for the estate.

Date: 
Wednesday, March 13, 2013
Category: 
Abandonment
Chapter 7 Issues
Property of the Estate
Chapter: 
7