In re CENTAUR, LLC., et al., 1

The Debtors in these cases are: Centaur, LLC, Centaur Colorado, LLC; Centaur Indiana, LLC; Centaur Racing, LLC; Hoosier Park, LP; HP Dining & Entertainment, LLC; Centaur Pennsylvania, LLC; VVD Properties General Partner, LLC; Valley View Downs GP, LLC; VVD Properties, LP; Valley View Downs, LP; Centaur PA Land Management, LLC; Centaur PA Land General Partner, LP; and Centaur PA Land, LP. (collectively referred to as the "Debtors"). Centaur PA Land, LP and Valley View Downs, LP filed their chapter 11 petitions on October 28, 2009 (the "2009 Petition Date"). The remaining Debtors filed their chapter 11 petitions on March 6, 2010 (the "2010 Petition Date").

Debtors, 2010 Bankr. LEXIS 3918

The committee sought an order authorizing it to prosecute certain claims and causes of action against the first and second lien lenders related to, among other things, the validity and enforceability of the liens in and against the debtors' assets. The court held that, although the committee had demonstrated that the claims were colorable, the respective experts' views were so fundamentally at odds that it was left without an adequate basis for quantifying, with any reasonable certainty (even within a range), any potential benefit to the estates from prosecution of the claims. The court therefore limited recovery of the committee's professional fees incurred in pursuing the claims to any cash proceeds or other quantifiable value received by the estate as a result of the litigation. The court also held that, because a grant of derivative standing did not strip a debtor of ownership of the claims, the debtors continued to have the right, subject to court approval, to settle the claims.