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In Re Harmony Holdings, LLC

395 B.R. 350 (2008)

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In Re Harmony Holdings, LLC

United States Bankruptcy Court for the District of South Carolina
395 B.R. 350 (2008)

  • Written by Philip Glass, JD

Facts

On January 31, 2008, Harmony Holdings, LLC (Harmony) (debtor) filed for Chapter 11 bankruptcy. Harmony submitted schedules classifying as disputed the claims of Barney Ng and R.E. Loans, LLC (creditors). Harmony filed a lawsuit against Ng and R.E. Loans on June 13, 2008, on the basis of their claims, rendering these claims disallowed under Chapter 11. The adversary proceedings initiated by Harmony would likely be complicated and protracted, and therefore unlikely to resolve before a reorganization-plan vote. On July 23, 2008, Harmony filed a reorganization plan. On August 27, 2008, Ng and R.E. Loans moved for the temporary allowance of their claims for the purpose of voting on the Chapter 11 plan, to which Harmony objected. Failure to grant temporary allowance and voting rights to Ng and R.E. loans would likely delay administration of Chapter 11 proceedings. A motions hearing transpired on September 18, 2008, during which Ng provided testimony regarding the full value of the claims that sufficed for temporary allowance of the claims for the filed amounts.

Rule of Law

Issue

Holding and Reasoning (Duncan, J.)

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