Aside from crazy ass judges being appointed, the first link I posted is an interesting conundrum. But, I realized I may have left out some critical information:
When a company (or Archdiocese in this precendent establishing case) files for bankruptcy they lose all control of the company until an order of the Bankruptcy Court passes it back in increments. We have a process called 'first day motions' which (watch for the magic!) are filed and heard on the first day after a company files for bankruptcy protection. These usually cover the major things, control of bank accounts, authority to pay wages, TRO's on utility companies to not cut off services, retention of attorneys and other required professionals, security of post-petition financing and possibly the outline of an asset sale or merger.
Beyond that the company must file a motion in open court to do
anything, especially anything that may affect the capital the company has in the bank. And everyone can object, whether you are owed $1 million or $1 you have the right to object to anything the company does. Practically no orders are entered without at least an objection being filed or a hearing be held.
Thus, the Bankruptcy Court, the United States Trustee (a DOJ watchdog that monitors the case on behalf of the US) and an appointed committee of unsecured creditors have near absolute authority over the function of a company in bankruptcy. Sooooo...
The United States District Court for the District of Oregon, a court established under Article III of the United States Constitution is now the controlling authority of the Roman Catholic Archdiocese of Portland.
Bankruptcy and Constitutional lawyers are drooling uncontrollably.
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