The bankruptcy court for the Eastern District of North Carolina denied Signature Capital, LLC's motion to amend or set aside the order confirming Chapter 11 bankruptcy reorganization plan. Signature Capital sought relief under Rule 60(a) and Rule 60(b) of the Federal Rules of Civil Procedure, arguing that the plan failed to recognize a subordination agreement that granted it lien priority over the IRS for certain assets.
In the first of these two unrelated cases, Ephraim Demons, representing himself, alleged that his mortgage lender (among others) committed fraud related to his mortgage based on Demons' belief that he created “money” when signing his mortgage.
Similarly, Aalaam alleged fraud and claimed his mortgage loan was invalid under the "vapor money" theory, arguing that banks create money by recording promissory notes as assets and therefore loans don’t need repayment.
Diggs Restaurant Group and other creditors argued that Oasis Cigar Club's Chapter 7 filing was unauthorized, as they claimed the company’s members had not voted to approve the filing. Oasis Cigar Club responded that its board of directors had authorized the filing, providing relevant documentation, though the movants questioned the legitimacy of the board’s authority and claimed judicial estoppel should prevent the company from asserting that the board had authority.
