Clarendon Holdings, LLC v. Gateway Bank and Trust Company

Filing 13

ORDER denying 1 Motion to Stay. The clerk is directed to close this case. Signed by Senior Judge Malcolm J. Howard on 2/14/12. (Lee, L.)

Download PDF
IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA SOUTHERN DIVISION NO. 7:12-CV-22-H IN RE: CLARENDON HOLDINGS, LLC, ) ) Debtor. ) ) ORDER --------------------------------)) ) GATEWAY BANK AND TRUST COMPANY, ) ) Creditor-Appellant. ) This matter is before the court on a motion to stay filed by Gateway Bank and Trust Company ("Gateway"). 2011, On December 2 0 , the bankruptcy court entered an order confirming a Chapter 11 plan of reorganization in In re Clarendon Holdings, 11 02479-8 SWH (Bankr. E.D.N.C.). Gateway, LLC, No. a secured creditor, has appealed the bankruptcy court's order and now seeks to stay enforcement of the confirmation order pending resolution of its appeal to this court. Rule 8005 of the Bankruptcy Rules authorizes the district court to stay enforcement of appeal. In determining a bankruptcy court order pending whether to utilizes the hardship balancing test. must demonstrate of its appeali (1) (2) issue a stay, the under this test, court Gateway that it is likely to succeed on the merits that it is likely to suffer irreparable harm absent a stay; harmed by a served by (3) that other parties will not be substantially stay i and (4) staying the bankruptcy Natural Res. Def. Council, that Inc., the court's 129 S. All four requirements must be met. Gateway confirming public interest Ct. 365, v. 374 (2008). Id. seeks to stay the bankruptcy "dirt a be Winter order. will for debt" plan in which court's the order debtor will surrender to Gateway the real property that serves as collateral for Gateway's receive a property, claim. because secured lien. credit with equal the Under the plan, to the deficiency fair market being the debtor will value treated as of an the real unsecured Gateway contends that the plan is not fair and equitable it equivalent of fails to provide its claim. Gateway with the Gateway maintains that indubitable the property should be valued based on its liquidation value and that absent a stay, the debtor will make pro rata distributions to its unsecured creditors to the detriment of Gateway. The court has thoroughly reviewed the parties' the record in this matter. briefs and The court finds that Gateway has not demonstrated that it is likely to suffer irreparable harm absent a stay of the bankruptcy court's order. stay [DE #1] is therefore DENIED. Gateway's motion to Gateway's appeal having been docketed as a separate action and no further proceedings being 2 necessary in this action, the clerk is directed to close this case. This 14th day of February 2012. ~~~ MALCOLM J. HOW D Senior United States District Judge At Greenville, NC #31 3

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?