Opinion ID: 659
Heading Depth: 1
Heading Rank: 4

Heading: The District Court's October 9, 2007 Decision and Order Affirming The Bankruptcy Court's Order on Remand and Release Order

Text: In an unpublished decision and order dated October 9, 2007, the District Court affirmed the Bankruptcy Court's Order on Remand and Release Order. See In re WestPoint Stevens, Inc., Nos. 06 Civ. 4128/4129/4130/4164; M-47, 2007 WL 2936212 (S.D.N.Y. Oct. 9, 2007). The District Court rejected the Contrarians' challenge to the Order on Remand that Aretex, as a member of the First Lien Lenders group, should not share pro rata in the proceeds from the disposition of the Securities. Id. at -. The District Court also rejected Aretex Group's challenge to the Order on Remand that the Bankruptcy Court erred when it (1) refused to limit the order to permit Aretex to maintain control of WestPoint International; (2) determined that the First Securities distributed to Aretex were among the securities subject to sale toward satisfaction of the claims of the First Lien Lenders; (3) refused to condition any sale involving control of WestPoint International on repayment of the $187 million Aretex paid for 17.5% interest of WestPoint International; and (4) directed the release of the Securities to Beal Bank. Id. at -. To the extent Aretex argued for repayment of the $32.8 million paid in connection with the exercise of the subscription rights that were previously distributed to it, the District Court generally agreed with Aretex and modified the Bankruptcy Court's order accordingly. Id. at . Inasmuch as the Contrarians also raised objections to the Release Order, the District Court affirmed the Release Order for substantially the same reasons stated by the Bankruptcy Court. Id. at , . This timely appeal followed.