Sunday, October 25, 2015
Bankruptcy Case vs. Bankruptcy Case
On January 18, 2015, Fox Rothschild's Delaware Bankruptcy Litigation blog published a post "Caesars Bankruptcy: Illinois Bankruptcy Proceeding Stayed by Delaware Bankruptcy Court".
The article reviews a situation where creditors filed a petition for an involuntary chapter 11 bankruptcy on January 12, 2015 against Caesars Entertainment in the Bankruptcy Court in Delaware and then three days later Caesars Entertainment filed a voluntary chapter 11 case in the Bankruptcy Court of the Northern District of Illinois.
The Delaware Bankruptcy Court referred to this as a situation of "parallel proceedings." In its January 15, 2015 order, the Delaware Bankruptcy Court ordered that the proceedings in the Illinois Bankruptcy case be stayed, except for certain first day motions, pending "issuance of an order determining, if necessary, the venue in which the Debtor's chapter 11 case shall proceed."