- Case No. 11-2085 (7th Cir., Dec. 22, 2011)
- In River West, the Seventh Circuit declined to consider the merits of an appeal pertaining to a 363 sale for two reasons. First, the appellant, Schwab, failed to obtain a stay, and therefore section 363(m) precluded the relief he sought on appeal. Second, the only order appealed by Schwab was the order sustaining the Debtor's objection to his claim; Schwab did not appeal the order confirming the liquidating plan that distributed the sale proceeds. Accordingly, Schwab's appeal was moot and was dismissed.
- Procedural context:
- Appeal of claim denial, in connection with 363 sale and confirmation of liquidating plan.
- Debtor owned a shopping center. Frank Schwab, the appellant, filed a notice of claim, indicating that he was owed a percentage of the Debtor's profits (apparently as a creditor, rather than an equity security holder - a matter which was disputed). The bankruptcy court disallowed Schwab's claim, finding that in no case was his alleged interest other than an equity interest. A 363 sale of the shopping center was held, and the court subsequently contemporaneously entered orders approving the sale and confirming a liquidating plan that provided for the distribution of the sale proceeds. The sale was free and clear under the terms of the Sale Order, and although Schwab had alleged an interest in the mall property itself, he failed to seek a stay within the requisite 14-day period.
- Bauer, Tinder, and Magus-Stinson (sitting by designation).
3311 in the system
1 Being Processed