In re: BGI, Inc., No. 13-2226 (2d Cir. 2014)Annotate this Case
In these consolidated appeals, holders of unredeemed consumer gift cards issued by the former book retailer (Borders or Debtors) seek to vacate the district court's dismissal as equitably moot appellants' challenges to three Bankruptcy Court orders. The court held that the analysis outlined in Frito-Lay, Inc. v. LTV Steel Co., which governs the Circuit's equitable mootness analysis in Chapter 11 reorganizations - also governs the court's mootness analysis in Chapter 11 liquidations; appellants are subject to the presumption of mootness created by the liquidation Plan's substantial consummation, and have failed to satisfy the five Chateaugay factors, as would be necessary to rebut that presumption; and the district court acted within its discretion in dismissing the appeals as equitably moot. Accordingly, the court affirmed the judgment of the district court.