In re CFS Fox River, Ltd.
UNPUBLISHED
Debtor filed its chapter 11 petition on the eve of a scheduled foreclosure sale of an apartment complex it operated. Secured creditor sought relief from stay or dismissal, but postponed the hearing on its motions and entered into a stipulation with debtor that essentially granted it superpriority administrative expense status over funds debtor would deposit into a segregated account. The court executed an order approving the stipulation, which included a provision regarding how a dismissal of debtor's petition would affect the agreement. Five days later, pursuant to a previous order, the court dismissed the case due to debtor's failure to file its schedules and statement of affairs. Thereafter, creditor sought post-dismissal relief from the court, alleging that debtor had violated the parties' stipulation. The court ruled, first, that superpriority status and collateral management are inherently bankruptcy functions, and are not "ancillary matters" over which the court would have continuing jurisdiction. Creditor's argument that the court retained inherent power to enforce its own orders was also rejected by the court, noting that a motion to dismiss supersedes prior orders and returns the parties to the remedies available to them under non-bankruptcy law. Concluding that it may have jurisdiction to consider creditor's motion, the court ruled that it would be inappropriate to do so.