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Chicago & Vicinity Laborers’ District Council Pension Plan, Chicago & Vicinity District Council Laborers’ Welfare Plan, Chicago & Vicinity District Council Retiree Welfare Plan and Catherine Wenskus, not individually but as Administrator of the Funds...

23bk03279, 23ap00127
Upon the debtor/defendant’s motion to dismiss a complaint seeking a determination of nondischargeability of alleged debt under three different theories under 11 U.S.C. § 523(a)(2) against a corporate subchapter V debtor, held:  Section 523(a) does not apply to corporate debtors proceeding under subchapter V of chapter 11.  Such corporate debtors are treated no different than corporate debtors proceeding under the remainder of chapter 11.  Inartful language by Congress and supposition as to congressional intent is not sufficient to enact a major change in the handling of cases under the Bankruptcy Code.  As a result, the complaint fails to state a claim upon which relief may be granted and must be dismissed, with prejudice.  The debtor/defendant’s motion to dismiss is therefore GRANTED.

Thursday, February 8, 2024