IN RE SCOPAC

No. 09-40307.

624 F.3d 274 (2010)

In the Matter of: SCOPAC; Scotia Development LLC; Salmon Creek LLC; Scotia Inn, Inc.; Britt Lumber Company, Inc.; The Pacific Lumber Company; Steve Wills Trucking and Logging LLC, Debtors. Bank of New York Trust Company NA, as Indenture trustee for the Timber Notes ("Indenture Trustee"); CSG Investments, Inc.; Angelo, Gordon & Company L.P.; Aurelius Capital Management, L.P.; Davidson Kempner Capital Management LLC; Scotia Redwood Foundation, Inc., Appellants, v. Pacific Lumber Company; Scotia Pacific LLC; Marathon Structured Finance Fund LP; Mendocino Redwood Company LLC; Committee of Unsecured Creditors; Bank of America, Appellees. Angelo, Gordon & Co. LP; Aurelius Capital Management LP; Davidson Kempner Capital Management LLC, Appellants, v. Marathon Structured Finance Fund LP; Mendocino Redwood Company LLC; Committee of Unsecured Creditors; Bank of America; Scotia Pacific LLC; Pacific Lumber Company, Appellees. CSG Investments, Inc., Appellant, v. Scotia Pacific LLC; Pacific Lumber Company, Appellees. Scotia Redwood Foundation, Inc., Appellant, v. Scotia Pacific LLC; Pacific Lumber Company, Appellees.

United States Court of Appeals, Fifth Circuit.

October 19, 2010.


Attorney(s) appearing for the Case

Roy Theodore Englert, Jr. (argued), Robbins, Russell , Englert, Orseck, Untereiner & Sauber, L.L.P., Washington, DC, Robert Andrew Black , Zack A. CLement , Fulbright & Jaworski, L.L.P., Houston, TX, Toby L. Gerber , William Richard Greendyke , Oscar Rey Rodriguez , Louis Raymond, Strubeck, Jr., Fulbright & Jaworski, L.L.P., Dallas, TX, for Bank of New York Trust Co. NA.

Murry B. Cohen , Akin, Gump, Strauss, Hauer & Feld, L.L.P., Houston, TX, Charles R. Gibbs , Akin, Gump, Strauss, Hauer & Feld, L.L.P., Dallas, TX, for CSG Investments and Scotia Redwood Found., Inc.

Isaac M. Pachulski , Jeffrey H. Davidson , Eric D. Winston , Stutman, Treister & Glatt, Los Angeles, CA, for Angelo, Gordon & Co. L.P., Aurelius Capital Management, L.P. and Davidson Kempner Capital Management LLC.

Shelby Arthur Jordan , Jordan, Hyden, Womble, Culbreth & Holzer, P.C., Corpus Christi, TX, for Pac. Lumber Co.

Kathryn A. Coleman , Gibson, Dunn & Crutcher, L.L.P., New York City, for Scotia Pac. LLC.

Steven Michael Schwartz , Counsel, David Neier , Bankruptcy Counsel, Winston & Stawn, L.L.P., New York City, John David Penn , Haynes & Boone, L.L.P., Fort Worth, TX, for Marathon Structured Finance Fund LP.

Allan S. Brilliant (argued), Dechert, L.L.P., New York City, Frederick Craig Schafrick , Richard Michaels Wyner , Goodwin Procter, L.L.P., Washington, DC, for Mendocini Redwood Co. LLC.

Maxim Boris Litvak , Pachulski, Stang, Ziehl & Jones, L.L.P., San Francisco, CA, for Committee of Unsecured Creditors.

Evan M. Jones , O'Melveny & Myers, L.L.P., Los Angeles, CA, for Bank of America.

Before JONES, Chief Judge, PRADO, Circuit Judge, and OZERDEN, District Judge.


EDITH H. JONES, Chief Judge:

This appeal involves a dispute over compensation for diminution in the value of collateral during the pendency of a Chapter 11 bankruptcy. The appellants, holders of notes secured by the timber and non-timber assets of the Scotia Pacific Co., LLC ("Scopac"), seek review of the district court's dismissal of their appeal for lack of subject matter jurisdiction and contend that the bankruptcy court erred in denying their "superpriority" administrative...

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