Opinion ID: 222453
Heading Depth: 1
Heading Rank: 6

Heading: The BAP Opinion

Text: The BAP found the appeal was not moot, because effective relief could still be granted. Lehman Commercial Paper, Inc. v. Palmdale Hills Prop., LLC (In re Palmdale Hills Prop., LLC), 423 B.R. 655, 662 (9th Cir. BAP 2009). It was not clear that all the loans [Lehman] made to[Palmdale] were the subject of the October Order. Id. The BAP also held that Lehman had standing under the person aggrieved test, because it had an interest in at least one of the loans, and may have an interest under a contractual repurchase obligation. Id. The BAP finally held that, because equitable subordination seeks to minimize an otherwise allowable claim, it is an affirmative action to take control of Lehman's property and thus prohibited by Lehman's stay. Id. at 665 (citing In re Enron Corp., 2003 Bankr.Lexis 2261 (Bankr.S.D.N.Y. Jan. 13, 2003)). Thus, before Palmdale could subordinate Lehman's claims and transfer Lehman's liens to the estate, it had to apply for relief from stay from Lehman's home bankruptcy court in the Southern District of New York. Id. at 668. Palmdale timely appealed to the Ninth Circuit on January 8, 2010.