Opinion ID: 1537763
Heading Depth: 1
Heading Rank: 2

Heading: Bankruptcy Stay Lifted

Text: The stay of this litigation was lifted after the Joint Plan became effective. As a result, the creditor trustee was empowered to prosecute the lawsuit. If, for any reason and at any time, the Creditor Trust chose not to prosecute this litigation, however, the Joint Plan provided that the Gaylords had a right to take over its prosecution. After the Joint Plan was confirmed by the Bankruptcy Court on September 8, 2005, the defendants' September 15, 2005 status letter advised the Court of Chancery that [they had] not yet been informed whether the creditors trust' or the Robert Gaylord family [would] elect to prosecute this action. In a January 20, 2006 status letter, the defendants informed the Court of Chancery that: the bankruptcy counsel who represented the Gaylord family (the Plaintiffs in this action) in connection with the Illinois bankruptcy proceedings has been retained to represent the trust established pursuant to the Plan of Liquidation. Although the stay of this litigation apparently was lifted in early October, we have not yet been advised whether the trust or the Gaylord family intends to continue to prosecute this litigation. Neither the Gaylords nor the Creditor Trust contacted the Court of Chancery.