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IN RE EXCEL INNOVATIONS, INC.

No. 06-17288.

502 F.3d 1086 (2007)

In re EXCEL INNOVATIONS, INC., Debtor, Solidus Networks, Inc.; Indivos Corporation, Appellants, v. Excel Innovations, Inc.; Ned Hoffman, Appellees.

United States Court of Appeals, Ninth Circuit.

Filed September 7, 2007.

Attorney(s) appearing for the Case

Kristen A. Palumbo, Alfred C. Pfeiffer, Jr., Bingham McCutchen LLP, San Francisco, CA, for the appellants.

Scott L. Goodsell, Campeau Goodsell Smith, San Jose, CA, for appellee Excel Innovations; John T. Hansen, Nossaman, Guthner, Knox & Elliott, San Francisco, CA, for appellee Hoffman.

Before: ALFRED T. GOODWIN, JAY S. BYBEE, and MILAN D. SMITH, JR., Circuit Judges.

GOODWIN, Senior Circuit Judge:

Debtor Excel Innovations, Inc. ("Excel") applied for a preliminary injunction staying arbitration proceedings between two non-bankrupt parties, Indivos Corporation ("Indivos") and former Excel CEO Ned Hoffman ("Hoffman"). The bankruptcy court granted the injunction, finding a reasonable probability that the arbitration could conceivably affect the debtor and the bankruptcy estate. The Bankruptcy Appellate Panel ("BAP") affirmed. The...

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