Debt Recharacterization: Does State or Federal Law Apply?

Cohn v. KB Mezzanine Fund II LP (In re SubMicron Sys. Corp.), 432 F.3d 448 (3d Cir. 2006); Fairchild Dornier GMBH v. Off. Comm. of Unsecured Creditors (In re Dornier Aviation (N.Am.) Inc., 453 F.3d 225 (4th Cir. 2006); Grossman v. Lothian Oil Inc. (In re Lothian Oil Inc.), 650 F.3d 539; Bayer Corp. v. MasoTech Inc. (In re Autostyle Plastics Inc.), 269 F.3d 726 (6th Cir. 2001); In re Live Primary LLC, 2021 WL 772248 (Bankr. S.D.N.Y. March 2, 2021); In re MSP Aviation LLC, 531 B.R. 795 (Bankr. D. Minn. 2015); Butner v. United States, 440 U.S. 48, 54 (1979); In re Roomstores of Phoenix LLC, 2020 WL 211399 (Bankr. D. Ariz. Jan. 10, 2020); In re Deer Valley Trucking Inc., 569 B.R. 341 (Bankr. D. Idaho 2017); FCC v. Airadigm Commc’ns Inc. (In re Airadigm Commc’ns Inc.), 616 F.3d 642 (7th Cir. 2010); Official Committee of Unsecured Creditors v. Hancock Park Capital II LP (In re Fitness Holdings Int’l Inc.), 714 F.3d 1141 (9th Cir. 2013); Sender v. Bronze Grp. Ltd. (In re Hedged-Investments Assocs.), 350 F.3d 1292 (10th Cir. 2004); Estes v. N & D Props. Inc. (In re N & D Props. Inc.), 799 F.2d 726 (11th Cir. 1986); In re Province Grande Olde Liberty LLC, 655 Fed. App’x 971 (4th Cir. 2016); PEM Entities LLC v. Levin, 137 S. Ct. 2326 (2017); Roth Steel Tube Co. v. Commissioners of Internal Revenue, 800 F.2d 625 (6th Cir. 1986).