(Bankr. E.D. Ky. Dec. 30, 2015)
The bankruptcy court denies the motion for stay relief to proceed with prepetition litigation. The movants were seeking to enjoin the debtors’ operation of a nightclub due to an alleged noise nuisance. The bankruptcy court applies the factors for considering whether stay relief should be granted to allow prepetition litigation to continue. While some of the factors were not determinative, allowing the litigation to continue would cause serious damage to the debtors’ reorganization efforts. The court ultimately concludes that stay relief is inappropriate. Opinion below.
Author: Matt Lindblom