United States Third Circuit

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In Re: Majestic Star Casino LLC, 12-3200

Summary judgment to debtors and certain of its subsidiaries and affiliates on their motion to avoid its controlling entity's termination of its status as an "S" corporation, an entity type that is not subject to federal taxation is vacated and remanded with directions to dismiss the complaint for lack of jurisdiction, where: 1) S-corp status is not "property" within the meaning of the Internal Revenue Code; 2) the debtors' QSub status was not "property" and the Bankruptcy Court's contrary conclusion was error; 3) even if the debtors' QSub status were "property," it is not properly seen as property of debtors' bankruptcy estate, and the contrary conclusion of the Bankruptcy Court cannot stand; and 4) debtors do not have standing to challenge the revocation of the tax status by its corporate parent.

Appellate Information

  • Decided 05/21/2013
  • Published 05/21/2013

Judges

  • JORDAN

Court

  • United States Third Circuit

Counsel

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