Ruben Perales v. TerraVia Holdings, Inc. et al

Filing 57

ORDER by Judge James Donato granting 50 Motion to Lift Stay. (jdlc1S, COURT STAFF) (Filed on 10/4/2017)

Download PDF
1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 8 IN RE TERRAVIA HOLDINGS, INC., SECURITIES LITIGATION Case No.16-cv-06633-JD ORDER RE MOTION TO LIFT STAY 9 Re: Dkt. No. 50 10 United States District Court Northern District of California 11 12 In this putative class action on behalf of purchasers of securities in TerraVia Holdings, 13 Inc., the defendants are TerraVia Holdings, Inc., its former CEO, its current CEO, and its 14 CFO/COO. On August 2, 2017, the corporate entity filed a voluntary bankruptcy petition under 15 Chapter 11 of the United States Bankruptcy Code on behalf of itself and two affiliated companies 16 not named in this action. The individual defendants have not filed for bankruptcy. 17 “As a general rule, the automatic stay of section 362(a) protects only the debtor, property 18 of the debtor or property of the estate. It does not protect non-debtor parties or their property.” In 19 re Chugach Forest Products, Inc., 23 F.3d 241, 246 (9th Cir. 1994) (internal quotation marks 20 omitted). This Court does not have jurisdiction to extend the automatic stay to a non-debtor party. 21 Boucher v. Shaw, 572 F.3d 1087, 1093 n.3 (9th Cir. 2009). That is entrusted to the bankruptcy 22 court. “Such extensions, although referred to as extensions of the automatic stay, are in fact 23 injunctions issued by the bankruptcy court [under Section 105] after hearing and the establishment 24 of unusual need to take this action to protect the administration of the bankruptcy estate.” Id. 25 (internal quotation marks and citation omitted); In re Ripon Self Storage, LLC, 2011 WL 330087, 26 at *6 (9th Cir. BAP 2011) (“[A]ny extension of the automatic stay to nondebtors does not occur 27 automatically but requires the filing of an adversary proceeding requesting the bankruptcy court to 28 act under [Section] 105(a).”). 1 The Court has not been advised that the bankruptcy court has extended the stay. 2 Consequently, this case may proceed against the non-debtor defendants and the previously entered 3 stay is modified to that extent. 4 IT IS SO ORDERED. 5 Dated: October 4, 2017 6 7 JAMES DONATO United States District Judge 8 9 10 United States District Court Northern District of California 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.

Why Is My Information Online?