Second Methodology Sample Clauses

Second Methodology. The United States Court of Appeals for the Second Circuit has articulated a similar, but not identical, methodology that has gained acceptance in a number of courts. This standard treats the relevant factors outlined above as mere variants of two critical criteria: (i) whether creditors dealt with the entities sought to be consolidated as a single economic unit and did not rely on their separate identity in extending credit, and (ii) whether the affairs of the entities sought to be consolidated are so entangled that consolidation will benefit all creditors because segregating the entities' respective affairs is impossible or so costly as to threaten the realization of any net assets for creditors. In re Augie/Xxxxxxx, 860 F.2d at 518-19; see also Colonial Realty, 966 F.2d at 61 (affirming the Augie/Xxxxxxx standard). If the proponent of consolidation establishes that either of these criteria is satisfied, consolidation may be granted. In re Standard Brands, 154 B.R. at 569. See also In re Bonham, 226 B.R. at 97. More recently, in In re Xxxxx Corning, 419 F.3d 195 (3d Cir. 2005), the United States Court of Appeals for the Third Circuit articulated the following five principles in determining whether to order consolidation: