On January 28, Judge David Jones of the Bankruptcy Court for the Southern District of Texas sanctioned BP after finding that its conduct in an arbitration proceeding involving the Seadrill debtors amounted to a “willful, knowing, and intentional” violation of the Bankruptcy Code’s automatic stay provisions. Judge Jones also sanctioned BP by awarding Seadrill their attorneys’ fees and costs in bringing the motion.
Seadrill brought an emergency motion to enforce the automatic stay pursuant to Section 362 of the Bankruptcy Code in connection with a post-petition order issued by an arbitration tribunal that required Seadrill to post a $1.7 million bond should it lose the arbitration. If Seadrill did not post the bond, the arbitration would not continue.
Continue Reading Seadrill Bankruptcy Court Sanctions BP For Willful Violation of Automatic Stay in Arbitration Proceeding