Halo Wireless, Inc. v. Alenco Communications, Inc., et al.

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Local telephone companies initiated twenty separate suits against Halo before ten state public utility commissions (PUCs) and Halo filed for bankruptcy as a result of this collective action. The telephone companies requested that the bankruptcy court determine that the various PUC actions were not subject to the automatic stay provided by the Bankruptcy Code at 11 U.S.C. 362(a), because they were excepted under section 362(b)(4), or that the bankruptcy court modify the automatic stay for cause, pursuant to section 362(d)(1). The court agreed with the bankruptcy court's holding that the exception to the automatic stay in section 362(b)(4) applied to the state commission proceedings, allowing the telephone companies to proceed with their litigation in the PUCs, but holding that the state adjudicative bodies could not issue any ruling or order to liquidate the amount of any claim against Halo, and that the bodies could not take any action that affected the debtor-creditor relationship between Halo and any creditor or potential creditor. View "Halo Wireless, Inc. v. Alenco Communications, Inc., et al." on Justia Law