IN RE OPTIM ENERGY, LLC

Case No. 14-10262 (BLS), Jointly Administered, Related to Docket Nos. 194, 223, 251, 254, & 257.

In re: Optim Energy, LLC, et al., Chapter 11, Debtors.

United States Bankruptcy Court, D. Delaware.

May 13, 2014.


Attorney(s) appearing for the Case

SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP, Anthony W. Clark, Esq. , Sarah E. Pierce, Esq. , One Rodney Square, P.O. Box 636, Wilmington, DE 19899-0636 -and- SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP, Kenneth S. Ziman, Esq. , Christine A. Okike, Esq. , Four Times Square, New York, NY 10036-6522, Counsel for Walnut Creek Mining Company.

MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Robert J. Dehney, Esq. , William M. Alleman, Jr., Esq. , Christopher M. Hayes, Esq. , 1201 N. Market Street, 16th Floor, Wilmington, DE 19801, -and- BRACEWELL & GIULIANI, LLP, Kurt Mayr, Esq. , Goodwin Square, 225 Asylum Street, Suite 2600, Hartford, CT 06103, -andYOUNG CONAWAY STARGATT & TAYLOR LLP, Pauline K. Morgan, Esq. , Margaret Whiteman Greecher , Rodney Square, 1000 North King Street, Wilmington, DE 19801, -and- CLEARY GOTTLIEB STEEN & HAMILTON LLP, Lindsee P. Granfield, Esq. , Boaz S. Morag, Esq. , One Liberty Plaza, New York, NY 10006, Counsel for Cascade Investment, L.L.C. and ECJV Holdings, LLC.

Rachel B. Goldman, Esq. , Robert G. Burns, Esq. , 1251 Avenue of the Americas, 49th Floor, New York, NY 10020-1104, Counsel for the Debtors and Debtors in Possession.


OPINION1

BRENDAN LINEHAN SHANNON, Bankruptcy Judge.

Walnut Creek Mining Company ("Walnut Creek"), an unsecured creditor, seeks derivative standing to pursue claims for recharacterization, equitable subordination, and breach of fiduciary duties against Cascade Investments, L.L.C. ("Cascade") and ECJV Holdings, LLC ("ECJV") on behalf of the Debtors,2 alleging that the secured debt should be recharacterized...

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