United States District Court, D. Delaware
In re Constellation Enterprises LLC, et al., Debtors.
OFFICE OF THE U.S. TRUSTEE, et al., Appellees. OFFICIAL COMMITTEE OF UNSECURED CREDITORS, Appellant,
RECOMMENDATION AND ORDER
Pat Thynge Chief U.S. Magistrate Judge
to paragraph 2(a) of the Procedures to Govern Mediation of
Appeals from the United States Bankruptcy Court for this
District dated September 11, 2012, the court conducted an
initial review, including review of information from counsel
contained in a joint letter dated November 3, 2017 that was
filed consistent with the Oral Order of October 20, 2017,
determine the appropriateness of mediation in the 17-1430-RGA
matter. In addition, a related matter, 17-mc-276-RGA, was
also filed by the Official Committee of Unsecured Creditors
on October 11, 2017.
parties to the letter include Official Committee of Unsecured
Creditors (“Committee”), the Chapter 7 Trustee, a
group of delayed draw term loan lenders and their agent (the
“DDTL Parties”), listed as Interested Parties in
the notice of appeal, and the United States Trustee (UST),
listed as an Interested Party in the notice of appeal.
appeal in 17-1430-RGA, brought by the Committee, concerns the
Conversion Order entered by the Bankruptcy Court granting the
Debtors' motion seeking conversion of their chapter 11
cases to chapter 7 cases, to which the Committee objected. As
noted above, the Committee also filed a motion to stay the
Conversion Appeal, 17-mc-276-RGA, and contends that until its
stay motion is adjudicated, there should be no other activity
in the Conversion Appeal. The Committee further notes that since
Conversion Appeal only involves questions of law, it is not
amenable to mediation. The Committee requests a telephonic
status conference before briefing begins in the appeal
because of its pending stay motion in 17-mc-276-RGA and as
set forth in its prior letter request found at D.I. 13 in
17-1430-RGA and D.I. 12 in 17-mc-276-RGA (same letter).
Chapter 7 Trustee agrees that the appeal of the Conversion
Order is not likely amenable to mediation. He further
contends that he must be a party to the appeal.
DDTL parties similarly agree that mediation would not be
worthwhile nor lead to a successful outcome and contend that
they are proper parties to the appeal.
agrees that the appeal is not amenable to mediation and he is
a proper party to the appeal.
previously noted, the Committee's motion for stay of the
conversion order pending appeal in 17-mc-276-RGA was filed on
October 11, 2017. In this matter, the UST filed a motion to
dismiss the appeal on October 26, 2017.
17-1430, after the entry of the Oral Order on October 20,
2017, DDTL and the UST filed motions to dismiss the appeal on
October 26, 2017.
October 31, 2017, the Committee filed a letter to only this
judge addressing the motions to dismiss the appeal,
contending they were improperly filed, as well as requesting
other relief. On November 1, 2017, the UST and DDTL filed
their respective responses to the Committee's October 30
letter contending that the Committee's request for relief
was done in an improper manner and was for “erroneous
result, to maintain the status quo until the November 3
letter regarding mandatory mediation was provided, this judge
entered an Order in 17-1430-RGA and 17-mc-276-RGA staying
further briefing in both matters until my Recommendation was
issued. Because of this stay, a briefing schedule
is needed in both matters on those issues Judge Andrews deems
result of the screening process, the issues involved in
17-1430-RGA are not amenable to mediation and mediation at
this stage would not be a productive exercise, a worthwhile
use of judicial resources nor warrant the expense of the
1. IT IS ORDERED that the stay is lifted in 17-1430-RGA and
IS RECOMMENDED that, pursuant to paragraph 2(a) Procedures to
Govern Mediation of Appeals from the United States Bankruptcy
Court for this District and 28 U.S.C. § 636(b), 17-1430
be withdrawn from the mandatory referral for mediation and
proceed through the appellate process of this Court. Since
all parties agree that mediation would not be worthwhile,
objections, pursuant to 28 U.S.C. § ...