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Opinion 166

Case Name: 

In re Arrow Huss, Inc., 51 B.R. 853 (Bankr.D.Utah)

Judge: 
Judge Clark
Date: 
Aug-1-1985
Case Number(s): 
84C-3187
Status: 

PUBLISHED

Body: 

Prior to the filing of an involuntary chapter 11 petition against it, debtor's officers and employees personally incurred business expenses on debtor's behalf. Postpetition, those employees were subjected to collection efforts, and debtor requested that the court extend the automatic stay to its present officers and employees with respect to those debts. Noting that the Bankruptcy Code does not provide a stay for non-debtor codefendants, the court determined that the sole basis upon which the collection efforts against debtor's employees could be enjoined was the court's injunction power under 11 U.S.C. § 105(a). The court held that, in extraordinary cases and under limited circumstances, § 105(a) may be necessary and appropriate to effect the objectives of bankruptcy. The court identified three considerations relevant to the use of its injunctive power from case law, and concluded that debtor had made enough of a case to warrant a very limited stay, so that its officers and employees could devote themselves to the reorganization effort.

Internal Ref: 
Opinion 166
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