Denial of Abstention Not Immediately Appealable

A bankruptcy court’s denial of a motion for abstention and remand in an adversary proceeding brought against directors and officers of Chapter 11 debtors was not immediately appealable, the U.S. District Court for the Southern District of New York concluded (Walker Truesdell Roth Assoc. v. The Blackstone Group LP (In re Extended Stay Inc.), S.D.N.Y., 1:11-cv-07782-SAS, 2/14/12).

The plaintiffs brought an adversary proceeding against the defendants, directors and officers of Chapter 11 debtors, in New York State court, alleging, inter alia, breach of fiduciary duty and unjust enrichment. The defendants removed the case to federal court and ...