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IN RE SOUTHEAST BANKING CORP.

No. 95-2045-CIV.

212 B.R. 682 (1997)

In re SOUTHEAST BANKING CORPORATION, Debtor. CHEMICAL BANK, as Indenture Trustee Under the Indenture dated as of March 1, 1983, of Southeast Banking Corporation, and Gabriel Capital, L.P., Appellants, v. FIRST TRUST OF NEW YORK, NAT'L ASSOCIATION, as Indenture Trustee, the Bank of New York, as Indenture Trustee, and Southeast Banking Corporation, Debtor, Appellees.

United States District Court, S.D. Florida.

February 28, 1997.

Attorney(s) appearing for the Case

Phillip M. Hudson, III, Kelley, Drye & Warren, Miami, FL, Sarah Reid, David C. Cimo, Kelly, Drye & Warren, New York, NY, for Appellant Chemical Bank, as Indenture Trustee.

Paul J. McMahon, Schulte, Blum, McMahon, Joblove & Haft, Miami, FL, David M. Friedman, David S. Rosner, Kasowitz, Benson, Torres & Friedman, New York, NY, for Appellant Gabriel Capital, L.P.

Francis L. Carter, Janie L. Anderson, Coll Davidson Carter, Miami, FL, Charles R. Hager, Dewey Ballantine, New York, NY, for Indenture Trustees First Trust of New York and Bank of New York.

Mark D. Bloom, Greenberg Traurig, Miami, FL, for Southeast Banking Corporation.

ORDER AFFIRMING FINAL JUDGMENT OF THE BANKRUPTCY COURT

MORENO, District Judge.

This Bankruptcy Appeal involves the effect of 11 U.S.C. § 510(a) on the enforcement of subordination agreements in bankruptcy proceedings. After conducting a de novo review, the Court agrees with the Bankruptcy Court that Section 510(a) does not change the standard bankruptcy practice that post-petition interest and post-petition fees and costs will not be subordinated...

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