SEI INSIEME LLC V. 307 ASSETS LLC
- Summarized by Jonathan Batiste , Rensselaer Polytechnic Institute
- 4 months 4 weeks ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- No. 24-2881-bk (2nd Circuit, Sep 29,2025) Not Published
- Tag(s):
-
- Ruling:
- The circuit court affirmed the district court’s finding that Creditor’s appeal was equitably moot. Creditor did not move to stay the bankruptcy court’s confirmation order; relief would be inequitable because of Creditor’s delay. The requested relief would also create an unmanageable, uncontrollable situation for stakeholders in the bankruptcy case. Creditor did not notify affected parties of the appeal to the district court. The bankruptcy court found that Debtor acted in good faith, rendering Creditor’s allegations of bad faith moot.
- Procedural context:
- Debtor filed for chapter 11 bankruptcy in the Bankruptcy Court for the Southern District of New York. The court confirmed a plan of reorganization that approved the sale of property encumbered by Creditor’s lien. Creditor appealed the court’s order to the district court, but the district court granted Debtor’s motion to dismiss the appeal as equitably moot. Creditor then appealed the district court’s decision to the circuit court.
- Facts:
- Debtor filed for chapter 11 bankruptcy, and its reorganization plan had been substantially consummated. Creditor moved to stay the sale of Debtor’s property that was encumbered by its lien; however, Creditor never moved to stay the bankruptcy court’s confirmation and sale order. Creditor erroneously relied on its pre-confirmation motions to delay the sale. By not moving to stay the confirmation and sale order, Creditor allowed the transfer of Debtor’s asset and its encumbrance by a new lien.
- Judge(s):
- Reena Raggi, Raymond J. Lohier, Jr., and Michael H. Park
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