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Federal Courts -
2nd Circuit Court of Appeals - October 5, 2007
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Krys v. Official Comm. of Unsecured Creditors (In re Refco Inc.), Docket Nos.: 06-5786-bk(L), 06-5797-ag (con), 06-5798-bk (con), 06-5799-bk (con), 06-5800-bk (con), 06-5801-bk (con), 06-5804-bk (con), 06-5806-bk (con), 06-5807-bk (con), 06-5808-bk (con), 06-5810-bk (con), 06-5811-bk (con), 06-5812-bk (con), 06-5813-bk (con),
UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT, October 5, 2007, Decided
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Overview: Investors had no standing to contest the settlement of a preference action pursuant to Fed. R. Bankr. P. 9019. The bankruptcy court was not the appropriate forum in which to resolve the investors' disputes with the company's board. Any internal dispute between a creditor and that creditor's investors belonged elsewhere.
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