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IN RE FRANCHISE SERVICES OF NORTH AMERICA, INC.

No. 18-60093.

891 F.3d 198 (2018)

IN RE: FRANCHISE SERVICES OF NORTH AMERICA, INCORPORATED, Debtor. Franchise Services of North America, Incorporated, Appellant v. United States Trustee; Macquarie Capital (USA), Incorporated; Michael John Silverton; Daniel Raymond Boland; Boketo, L.L.C., Appellees.

United States Court of Appeals, Fifth Circuit.

May 22, 2018.

Attorney(s) appearing for the Case

Luther T. Munford , John C. Henegan, Esq. , Christopher Raymond Maddux, Esq. , Stephen W. Rosenblatt, Esq. , Butler Snow, L.L.P., Ridgeland, MS, Adam Michael Langley , Butler Snow, L.L.P., Memphis, TN, for Appellant.

Erin Marie Schmidt , Trial Attorney, U.S. Department of Justice, Office of the U.S. Trustee Room, Dallas, TX, Ronald H. McAlpin , Office of U.S. Trustee, Jackson, MS, for Appellee UNITED STATES TRUSTEE.

Kevin H. Marino , Marino, Tortorella & Boyle, P.C., Chatham, NJ, for Appellees MACQUARIE CAPITAL (USA), INCORPORATED, MICHAEL JOHN SILVERTON, DANIEL RAYMOND BOLAND.

Brooks Eason , Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., Jackson, MS, Kevin H. Marino , Marino, Tortorella & Boyle, P.C., Chatham, NJ, Alan Lee Smith , Jackson, MS, for Appellee BOKETO, L.L.C.

Before KING, JONES, and GRAVES, Circuit Judges.

Under longstanding Supreme Court precedent, state law dictates the procedures a corporation must follow to authorize a bankruptcy filing. When those procedures place the decision in the hands of the corporation's creditors, some courts have allowed the bankruptcy to proceed even though the creditors withheld consent. This case...

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