RICHARD G. ANDREWS, District Judge.
Presently before the Court are Amicus Curiae Public Justice's Motion for Leave to File an Amicus Brief (D.I. 36), Appellants' Motion for Leave to File a Surreply in Opposition to Appellees' Motion to Dismiss Fenicle and Fahy Appeal (D.I. 53) and related briefing (D.I. 57, 58), Appellants' Motion for Joinder of Putative Appellant John H. Jones (D.I. 59), and Appellees' Motion to Dismiss Fenicle and Fahy Appeal (D.I. 38) and related briefing (D.I. 47, 52).
For the reasons set forth below, Amicus Curiae Public Justice's Motion for Leave to File an Amicus Brief (D.I. 36) is
Debtors/Appellees filed voluntary petitions for relief in the United States Bankruptcy Court for the District of Delaware under Chapter 11 of the Bankruptcy Code. On December 21, 2015, Appellants Fenicle and Fahy
The order approving the Plan provided that the Plan would be rendered "null and void" if the Plan was not consummated by April 30, 2016. (D.I. 38, ¶ 4). That date passed without consummation of the Plan. (Id. at ¶ 7). On May 1, 2016, Debtors filed a new Joint Plan of Reorganization with the Bankruptcy Court that had yet to be confirmed at the time briefing on this motion concluded.
This Court has jurisdiction to hear appeals from the Bankruptcy Court pursuant to 28 U.S.C. § 158(a). District courts have mandatory jurisdiction to hear appeals "from final judgments, orders, and decrees . . . of bankruptcy judges entered in cases and proceedings." 28 U.S.C. § 158(a)(1). District courts also have discretionary jurisdiction over appeals "from other interlocutory orders and decrees" of bankruptcy judges. § 158(a)(3).
A Bankruptcy Court order confirming a plan is a final order immediately appealable as of right under § 158(a)(1). Bullard v. Blue Hills Bank, 135 S.Ct. 1686, 1692 (2015). An order denying plan confirmation, however, is not a final order as long as the debtor may propose an alternate plan. Id. The parties do not dispute that the confirmation order of December 9, 2015 was final and immediately appealable. Rather, the issue in this Motion to Dismiss is the effect of the failure of consummation on the finality and, therefore, the appealability of the confirmation order.
Finality with respect to plan confirmation proceedings rests on whether the order in question "alters the status quo and fixes the rights and obligations of the parties." Bullard, 135 S. Ct. at 1692. This is why an order denying confirmation is not a final order as long as the debtor has the option to amend or propose another plan. Id. at 1693. Such an order "does rule out the specific arrangement of relief embodied in a particular plan," but does not eliminate the possibility of confirmation of an alternate plan. Id.
The effect of the failure of consummation of Debtor's confirmed plan in the instant case is similar to the effect of a denial of a plan with leave to amend. The original confirmed plan "has been rendered null and void in all respects." (D.I. 38, ¶ 8). In other words, "[t]he parties' rights and obligations remain unsettled." Bullard, 135 S. Ct. at 1693. In this case, the Bankruptcy Court proceedings have not been dismissed and Debtor has proposed an alternate plan that is the subject of ongoing litigation. That plan is subject to further amendment and may be objected to during this ongoing proceeding. "`Final' does not describe this state of affairs." Id.
Appellants also request that if the order is deemed interlocutory, Appellants be granted leave to appeal under 28 U.S.C. § 158(a)(3). (D.I. 54-1, p.8). The failure of consummation, however, has not converted the confirmation order from a final order into an interlocutory order. Rather, the original confirmation order is simply no longer operative. In other words, the original order has not settled any disputes between the parties and has not conclusively determined any issues in the case. Therefore, leave to appeal under § 158(a)(3) is denied as the order in question is not interlocutory.
Appellants note that the discharge provisions of Debtors' new proposed plan are identical to those in the original confirmed plan that are the subject of this appeal. (D.I. 47, p. 6). This is irrelevant to the finality analysis, however, as the provisions of the new plan are not finally determined until the Bankruptcy Court enters an order confirming the new plan.
For the reasons set forth herein, Amicus Curiae Public Justice's Motion for Leave to File an Amicus Brief is
An appropriate order will be entered.