Perez v. TerreStar


New York Law Journal


Judge Ronnie Abrams

Perez held stock in TerreStar Corp. (TSC), which sought Chapter 11 relief on Feb. 16, 2011. On Aug. 26, 2011, bankruptcy court expunged Perez's claims against TSC. Its Nov. 30, 2011, order denied his Sept. 13 request for an independent examiner's appointment. In connection with his Dec. 29, 2011, appeal of that order, Perez missed the deadline for filing and serving his appellate brief. TSC's reorganization plan (Plan) was confirmed Oct. 24, 2012, more than eight months after Perez's opening brief was originally due. Despite seeking stay of bankruptcy court's order approving TSC's disclosure statement, Perez did not seek to stay the Plan until after it was confirmed and went into effect in March 2013. District court dismissed Perez's appeal from the bankruptcy court's Nov. 30 order denying an examiner's appointment. Perez failed to satisfy at least four of the five prongs of the Chateaugay test. Thus, Perez's appeal was equitably moot. The Plan was substantially consummated within the meaning of Bankruptcy Code §1101. Further, reevaluation of the debtors' primary asset and the distribution of any additional value uncovered would require the unraveling of intricate transactions and cause harm to the vitality of Reorganized TSC.

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