24 BK 03056, 24 AP 00172
In this chapter 11 case, the Debtor sought a temporary restraining order (TRO) to stay litigation against third-party guarantors, the Debtor’s principals, and related entities.  The Debtor argued its principals were responsible for all management, accounting, and operations of the Debtor and intended to contribute financially to the plan.  The court granted the TRO, relying on In re Gander Partners LLC, 432 B.R. 781, 783-84, 787-89 (Bankr. N.D. Ill. 2010), finding a temporary stay of the litigation at issue was warranted because it could distract the Debtors’ principals and affiliates.  The court found the litigation could impair this court’s jurisdiction to help the Debtor reorganize, since the source of funds to use for the reorganization could be jeopardized and that there was a reasonable likelihood of a successful reorganization.  The court noted that the relief requested was not barred by the recent ruling in Harrington v. Purdue Pharma L.P., 144 S. Ct. 2071 (2024), which invalidated the practice of granting nonconsensual releases to non-debtors in chapter 11 reorganization plans.