⚖ Oral Arguments, with Context

The U.S. Bankruptcy Appellate Panel of the Ninth Circuit hears argument in In re Gavrieli, a consolidated appeal arising from a Chapter 11 bankruptcy. The dispute involves three interwoven issues about the powers and duties of a post-effective-date trustee under a confirmed reorganization plan. At the heart of all three appeals is a single question: What happens when the debtor defaults under a Chapter 11 plan that created a post-confirmation trust to wind up the estate? Specifically, does the trustee gain full control over pending litigation that the debtor had been managing, and does the trustee have unreviewable discretion to hold volatile cryptocurrency, to borrow money on unsubordinated terms, and to decide how to pursue millions of dollars held in Hong Kong? The appellant, a creditor, argues that the plan's default provisions stripped the debtor of control and required the trustee to liquidate assets promptly and to follow specific borrowing limits set out in the plan. The trustee responds that the plan and trust agreement give him broad business judgment and that he has been acting consistently with his fiduciary duties. The case turns on close interpretation of plan language drafted by the original Chapter 11 trustee to govern the post-confirmation administration.

In re Gavrieli (No. 26-1000) — United States Bankruptcy Appellate Panel of the Ninth Circuit, argued July 16, 2026.