Biltmore Investments, LTD v. TD Bank, N.A.
- Summarized by Ann Brogan , Davey | Brogan, PC
- 7 years 8 months ago
- Biltmore Investments, LTD v. TD Bank, N.A., Case No. 15-1076 (4th Cir. Oct. 1, 2015) (unpublished) (per curiam).
- The court of appeals held the automatic stay expired upon confirmation of a Chapter 11 plan of reorganization. The district court erred in extending the automatic stay stay to enjoin a bank from foreclosing on the stock of the sole shareholder of the reorganized Chapter 11 debtor to satisfy its state court judgment against the shareholder.
- Procedural context:
- After confirmation of the debtor's Chapter 11 plan, a secured creditor of the debtor and judgment creditor of the debtor's shareholder filed a motion in the bankruptcy court requesting a declaration that the automatic stay did not bar the bank from executing on the shares of the debtor's sole shareholder. The bankruptcy court granted the motion. The debtor appealed. The district court reversed and stayed the bank from taking any action directed at the shareholder to seize or sell his shares of stock in the debtor. The bank appealed to the court of appeals.
- Biltmore Investments filed under Chapter 11 in 2011. TD Bank was a secured creditor of debtor. In 2012, the bank obtained a state court judgment against sole shareholder of debtor. In 2013, the bankruptcy court confirmed Biltmore’s plan of reorganization over the objection of TD Bank. After confirmation, the bank attempted to satisfy its judgment against the shareholder by executing on his stock in Biltmore.
- Before Circuit Judges Paul V. Niemeyer,Robert B. King, and Roger L. Gregory.
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