ANB filed two proofs of claim in Julien’s bankruptcy case, but Julien only objected to one of the claims. The basis for the claim at issue was Julien’s guaranty of two financing leases. The first of the leases, identified as Lease #8452, was for industrial coolers and various accessories owned by ANB and leased to Biovance Texas, LLC, a separate entity from the debtor, Biovance Technologies, Inc. The second lease, identified as Lease #8441, was for the lease of computer equipment by ANB to Biovance Technologies, the chapter 11 debtor.
The Court’s Ruling
The first issue for determination by the court was the debtors’ judicial estoppel argument that ANB should be prohibited from amending its original proof of claim filed in Julien’s bankruptcy case. ANB had amended the claim it filed in Julien’s bankruptcy case after collecting some funds pursuant to both leases. Upon preparing the amended proof of claim for filing, ANB discovered that it had miscalculated the amount asserted in its initial proof of claim, and therefore, recalculated the amount asserted as due and owing in its amended proof of claim. The court rejected the debtors’ arguments, and instead found that ANB was entitled to correct its calculation of the original balance due.
What Does This Mean For Creditors?
The usefulness of the court’s opinion is two-fold: