Law of Cards: Upper Deck International Files for Bankruptcy Protection
On October 18, Upper Deck International BV (the first UD in the Upper Deck v Upper Deck matter), filed for Chapter 15 bankruptcy protection in the Southern District of New York.
Legal translation: A chapter 15 bankruptcy petition basically says, "Hey Judge, we've got a bankruptcy going on in another country and that one's going to decide what happens to us in the future. Now, while we're waiting to sort that one out, there MIGHT be some ancillary issues in the US that need to be wrapped up. So, we'll probably need you for that."
Given that Upper Deck International had already filed a bankruptcy action in the Netherlands some time ago, it may not seem like this is big deal. But, it actually is. If a bankruptcy proceeding goes forward in the United States, it might trigger an automatic stay of the UD2 matter.
Legal translation: Stop the press! Nothing more to see here until we get this whole bankruptcy thing sorted out.
A hearing is set for November 20 in New York to address some of the preliminary bankruptcy issues, and the United States Upper Deck defendants (who, for the record, are not in bankruptcy proceedings) were invited.
It could be as soon as that hearing ends that UD2 might be put on hold. Maybe indefinitely.
This is not really a surprise since this case started floundering this summer and the defendants' recent push into foreign discovery. It's just another sign that my favorite lawsuit might be coming to a close soon.
Click here to review Upper Deck International's bankruptcy filing. Here's the exhibit filing that accompanies it.
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