- 11 U.S.C.
In re DBSI Inc.
May
12
2010
Ruling
Relief from stay to foreclose denied where creditor had not shown that it had a valid perfected lien or a statutory lien and had not sought relief in an adversary proceeding.
Procedural posture
A bank, as Indenture Trustee, brought four motions. Three of the motions sought entry of orders, pursuant to 11 U.S.C.S. § 362, lifting the stay to allow the bank to foreclose on its alleged collateral and exercise state law remedies. The remaining motion sought a declaratory judgment that the bank's actions as to seizure of funds in certain accounts did not violate the stay. The Trustee and Official Committee of Unsecured Creditors objected.
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Court
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