Camp Flintlock, Inc. filed an emergency Motion for Relief from Stay after the Debtors filed Chapter 7 one day prior to a state court hearing to enter a final judgment for damages, a permanent injunction against the Debtors, and a final order for contempt and discovery sanctions, in a case that had lasted for four years.
The bankruptcy court found that sufficient cause existed to the lift the automatic stay and allow the trial court “the largely ministerial task” of entering final judgment as it had expended substantial time and energy to bring these matters to a conclusion, and it was a day away from doing so. Further, a written final order from the trial court would help in any future proceedings in the bankruptcy court. The enforcement of any monetary judgment was nonetheless stayed. Neither any criminal contempt nor non-monetary enforcement of a permanent injunction was stayed.
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