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Bankruptcy and Criminal Matters

By FindLaw Staff on March 26, 2010 | Last updated on March 21, 2019

US v. Janvier, No. 08-5978, involved defendant's appeal from the district court's order revoking his term of supervised release due to his use of drugs, and sentencing him to five months' incarceration and an additional period of supervised release.  The court of appeals reversed, holding that the district court lacked jurisdiction because no warrant or summons was issued before the end of the supervised release term.

In re: WestPoint Stevens, Inc., No. 07-4772, involved a bankruptcy proceeding in which the district court's order reversed the bankruptcy court's orders permitting 1) the distribution of unregistered securities and subscription rights to satisfy the liens held by senior secured creditors and 2) the distribution of the remaining subscription rights to junior secured creditors, but affirming the bankruptcy court's order of adequate protection payments to the junior secured creditors.  The court of appeals affirmed in part, holding that the adequate protection payments held in escrow were properly released to the second lien lenders. 

However, the court reversed in part on the grounds that 1) the court of appeals lacked jurisdiction to review the sale order unless a stay had been entered or there was a challenge to the "good faith" aspect of the sale, and 2) in withdrawing the motion for "a stay of the closing of the sale," the parties' stay stipulation permitted the transfer of assets and the lien release, claim satisfaction, and distribution to occur as a single integrated transaction.

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