The United States Supreme Court has denied a petition for certiorari in a case in which the U.S. Court of Appeals for the Ninth Circuit had articulated when a bankruptcy court should stay arbitration proceedings between non-debtor parties. In re Excel Innovations, Inc., 502 F.3d 1086, (9th Cir. 2007), cert. den., __ U.S. __ (Dkt. No. 07-963, April 28, 2008).

In Excel, the Ninth Circuit had reversed the Bankruptcy Court’s preliminary injunction staying arbitration proceedings between two non-debtor parties. But in so doing, the Ninth Circuit articulated the circumstances under which such an injunction should be granted. The issue was covered in greater detail in the January issue of the CRaB Alert. See CRaB Alert, January 2008, p. 1, “Ninth Circuit Pumps New Life Into Section 105 Injunctions.”

After our coverage in the CRaB Alert, the Ninth Circuit denied a petition for rehearing. The Supreme Court’s subsequent denial of a petition for certiorari leaves the Ninth Circuit’s Excel analysis intact.