Official Committee of Unsecured Creditors v. Hancock Park Capital II, L.P.
Opinion
Opinion
ORDER
Pacific Western Bank’s Petition for Clarification or Rehearing is GRANTED IN PART AND DENIED IN PART. Its request for clarification is GRANTED. The clarifications are made in the amended memorandum disposition filed concurrently with this order. Its request for a rehearing is DENIED.
No further petitions for rehearing or rehearing en banc will be entertained.
AMENDED MEMORANDUM
In this Chapter 7 bankruptcy case, the bankruptcy court dismissed all the trustee’s claims against defendants under Rule 12(b)(6) of the Federal Rules of Civil Procedure. The bankruptcy court affirmed. We have jurisdiction under 28 U.S.C. §§ 158 (d)(1) and 1291, and now affirm in part, reverse in part, and vacate and remand in part.
As explained in our opinion in In re Fitness Holdings Int’l, the district court erred in concluding that the trustee’s argument that Hancock Park’s loan to Fitness Holdings should be recharacterized as equity was not cognizable as a matter of law. 714 F.3d at 1144. Because of this legal error, the district court failed to consider whether the trustee plausibly alleged that the $11,995,500 transfer from Hancock Park to Fitness Holdings should be re-characterized as…