Palladino v. E&B Natural Resources Management Corp. (In re South Coast Oil Corp.)
- Citation:
- Palladino v. E&B Natural Resources Management Corp. (In re South Coast Oil Corporation), No. 12-56403 (9th Cir. Mar. 2014)
- Tag(s):
-
- Ruling:
- The Ninth Circuit, in a not for publication decision, denied the appellant's appeal of the district court's dismissal of his appeal of the bankruptcy court's order authorizing the Chapter 11 trustee to sell the debtor's interest in stock of a corporation. The Ninth Circuit found the appeal moot under 11 U.S.C. section 363(m) because the appellant did not obtain a stay pending appeal before the sale closed and found that the bankruptcy court's finding that the buyer of the debtor's property was a good faith purchaser was not clearly erroneous.
- Procedural context:
- The United States District Court for the Central District of California dismissed the appeal of the bankruptcy court's order authorizing the Chapter 11 trustee to sell debtor South Coast Oil Corporation’s interest in the stock of Angus Petroleum Corporation to Elysium West, LLC. The appellant appealed to the Ninth Circuit Court of Appeals.
- Facts:
- The Chapter 11 Trustee for debtor South Coast Oil Corporation ("Debtor") sought the bankruptcy court's authority to sell the Debtor's interest in the stock of Angus Petroleum Corporation (“Angus”) to Elysium West, LLC ("Elysium"). The bankruptcy court authorized the sale on February 17, 2012, finding that Elysium purchased in good faith and for value, as supported by evidence that the transaction was at arm's length, the price was reasonable and the purchase was subject to overbids at an auction pursuant to court-approved bidding procedures. The bankruptcy court had also waived the automatic stay in light of a pending regulatory hearing that could affect Angus's stock and ruled that the sale would close no later than March 4, 2012. The Ninth Circuit noted that the appellant waited until March 1, 2012 to file a motion for a stay pending an appeal with the district court.
- Judge(s):
- Paez, Nguyen, Motz
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