Official Committee of Unsecured Creditors v. Moeller (In re Age Refining, Inc.)

Summarized by Craig Geno , Law Offices of Craig M Geno, PLLC
12 years 7 months ago

Citation:

Case No. 1250718

Tag(s):

Ruling:

Vacated and remanded District Court's decision.

Procedural context:

Appeal from Bankruptcy Court decision to District Court resulted in appeals being dismissed for equitable mootness. ppellants then prosecuted theri appeal to the Fifth Circuit

Facts:

Chapter 11 Trustee settled claims of the major secured creditor, as well as claims against third party defendants, sold substantially all the assets of the estate and obtained plan confirmation. The Committee appealed and sought a stay before the Bankruptcy Court which was denied. The Committee then appealed to teh District Court, which dismissed the appeals as equitably moot. The Committee then appealed to the Fifth Circuit, which reveersed and remanded the District Court decision. The Fifth Circuit ruled that the appeals were not equitably moot as the the Plan in that a reversal would only reallocate payments and no parties outside the scope of the plan were effected. The same ruling applied to the settlemnt with the major secured creditor, even though a stay was not actually sought as to that issue.

Judge(s):

JOnes, Clement and Kazen

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