The district court considered an appeal by Meritage Homes Corporation and Meritage Homes of Nevada, Inc. of the bankruptcy court’s order confirming South Edge LLC’s chapter 11 plan of reorganization. Meritage asserted that the bankruptcy court erred in approving the plan of reorganization’s exculpation and post-confirmation injunction provisions. In addition, Meritage also challenged the provisions of the confirmation order stating that a repayment guaranty executed by Meritage was not satisfied or released through confirmation. JPMorgan Chase Bank, N.A. and a number of home builders (referred to as the “Settling Builders”) moved to dismiss the appeal as equitably moot due to the substantial consummation of the plan and Meritage’s failure to get a stay of the confirmation order pending its appeal.
The district court determined that the Meritage appeal was not rendered equitably moot by the actions taken to consummate the plan, but affirmed the bankruptcy court’s confirmation order on its merits.
A copy of the district court’s opinion is embedded below.