Official Creditors' Committee for QMect, Inc. v. Electrochem Funding, LLC (In re QMect, Inc.)

MEMORANDUM OF DECISION RE MOTION TO AMEND COMPLAINT

The Official Unsecured Creditors’ Committee (the “Committee”) for the above-captioned debtor (the “Debtor”) moves to amend its complaint in the above-captioned adversary proceeding (the “Complaint”) to add and delete certain claims as well as to change the wording slightly of some of the existing claims. Defendants Electrochem Funding, LLC (“Funding”) and Burlingame Capital Partners II, L.P. (“Burlingame”)(collectively “Defendants”) oppose the addition or modification of the existing claims. They oppose the dismissal of any claims unless the dismissal is with prejudice to the claims being reasserted by any party acting on behalf of the bankruptcy estate. The motion was fully briefed and was argued and submitted to the Court for decision on September 7, 2006. The Court’s decision and the reasons for its decision are set forth below.

DISCUSSION

A. BACKGROUND

The Complaint was filed on June 28, 2004. The charging allegations are set forth in two parts: i.e., one dealing with objections to the secured claims of Funding and the other dealing with objections to the secured claims of Burlingame. Primarily, the objections allege that…