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.)

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

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