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Betula Lenta, Inc. v. Jinzheng Group USA, LLC — 9th Cir. (Oct 21, 2026)

No. 25-3447 Argued October 21, 2026 Published October 23, 2026

The Ninth Circuit hears a bankruptcy appeal by Betula Lenta. The background is a dispute over contract payments: Betula claimed money from a company in bankruptcy, and that company sued Betula and related defendants. A later lawsuit also sought to recover payments transferred to Betula. Betula did not answer on time, and its default was entered. An entry of default records a failure to defend; it is not the same as a final default judgment. Betula has sought to undo that default, leading to this appeal. Before addressing whether the default should be removed, the appeals court must examine its authority to hear the case at this stage. The question is whether the challenged order was final enough for an appeal as of right, and what options remain if it wasn't. An interlocutory order comes before a case or a discrete proceeding is finally resolved. Some bankruptcy appeals from such orders require permission from the district court. This argument concerns that procedural route, rather than who ultimately owes the money.

Betula Lenta, Inc. v. Jinzheng Group USA, LLC (No. 25-3447) — U.S. Court of Appeals for the Ninth Circuit, argued October 21, 2026.

Sources
Argument audio — official Ninth Circuit recording:https://cdn.ca9.uscourts.gov/datastore/media/2026/10/21/25-3447.mp3
Betula motion to set aside default — bankruptcy calendar, pages 49–50:https://ecf-ciao.cacb.uscourts.gov/kioskPDF/SK_080724.pdf
Earlier contract dispute — related adversary tentative ruling, pages 3–7, not the order under appeal:https://ecf-ciao.cacb.uscourts.gov/kioskPDF/ER_060723.pdf
Betula payment claims and late answer — factual background in separate TCS appeal, March 24, 2025:https://app.midpage.ai/document/in-re-debtor-jinzheng-group-10829870
Bankruptcy appeal authority — 28 U.S.C. 158:https://www.law.cornell.edu/uscode/text/28/158
Entry of default versus default judgment — Civil Rule 55:https://www.law.cornell.edu/rules/frcp/rule_55
Rule 55 in bankruptcy adversary proceedings — Bankruptcy Rule 7055:https://www.law.cornell.edu/rules/frbp/rule_7055

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