United States Second Circuit

In a bankruptcy proceeding, the district court's order reversing the bankruptcy court's orders permitting (1) the distribution of unregistered securities and subscription rights to satisfy the liens held by senior secured creditors and (2) the distribution of the remaining subscription rights to junior secured creditors, but affirming the bankruptcy court's order of adequate protection payments to the junior secured creditors, is affirmed in part where the adequate protection payments held in escrow were properly released to the second lien lenders. However, the order is reversed in part where: 1) the court of appeals lacked jurisdiction to review the sale order unless a stay had been entered or there was a challenge to the "good faith" aspect of the sale; and 2) in withdrawing the motion for "a stay of the closing of the sale," the parties' stay stipulation permitted the transfer of assets and the lien release, claim satisfaction, and distribution to occur as a single integrated transaction.

Appellate Information

• Decided 03/26/2010
• Published 03/26/2010

Judges

Court

• United States Second Circuit

Counsel