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IN RE THE COLONIAL BANCGROUP, INC.

No. 09-32303-DHW.

436 B.R. 695 (2010)

In re THE COLONIAL BANCGROUP, INC., Debtor.

United States Bankruptcy Court, M.D. Alabama.

June 25, 2010.

Attorney(s) appearing for the Case

C. Edward Dobbs, Rufus T. Dorsey, IV, Parker, Hudson, Rainer & Dobbs, LLP, Atlanta, GA, W. Clark Watson, Balch & Bingham LLP, Birmingham, AL, for Debtor.

Richard D. Shinbaum, Montgomery, AL, for Respondents.

MEMORANDUM OPINION

DWIGHT H. WILLIAMS, JR., Bankruptcy Judge.

The Colonial BancGroup, Inc. ("debtor") filed a motion for authority to exercise ownership rights over assets held in a deferred compensation plan (Doc. #255). The motion is opposed by twenty-one employees of the debtor and its subsidiary, Colonial Bank, who contributed to the plan.1 An evidentiary hearing was held on April 15, 2010.

At issue is whether the...

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