United States Court of Appeals for the Second Circuit August Term 2023

(Argued: November 15, 2023 Decided: November 22, 2023)

Docket No. 23-60-bk

_______________________________________

In Re: Décor Holdings, Inc., et al.,

Post-Confirmation Debtors. _______________________________________

Brian Ryniker, in His Capacity as Litigation Administrator of the Post- Confirmation Estates of Décor Holdings, Inc., et al.,

Plaintiff-Appellant,

v.

Sumec Textile Company Limited,

Defendant-Appellee.

_______________________________________ Before:

WESLEY, CHIN, and BIANCO, Circuit Judges.

In this bankruptcy appeal, the Litigation Administrator of the post- confirmation estates of the debtor challenges the District Court’s order vacating the bankruptcy court’s entry of default judgment against the Defendant-Appellee and remanding for further proceedings. The appellee challenges our jurisdiction to hear this appeal. We conclude that we do not have jurisdiction because the district court’s order setting aside the default judgment is not an appealable, final order. DISMISSED.

NOAH WEINGARTEN (Schuyler Carroll, P. Gregory Schwed, on the brief), Loeb & Loeb LLP, New York, New York, for Plaintiff-Appellant.

FREDERICK B. ROSNER, The Rosner Law Group LLP, Wilmington, DE for Defendant-Appellee. PER CURIAM:

Plaintiff-Appellant Brian Ryniker, in his capacity as Litigation Administrator of the post-confirmation estates (the “Litigation Administrator”) of Post-Confirmation Debtor Décor Holdings, Inc. (“Décor Holdings”), appeals the district court’s order, entered on January 12, 2023, vacating the bankruptcy court’s entry of default judgment against Defendant-Appellee Sumec Textile Company Limited (“Sumec”) and remanding the case for further proceedings. The district court’s order re-opened an adversary proceeding that the Litigation Administrator initiated against Sumec to avoid preferential payments of $694,048.84 that Décor Holdings and its affiliated debtors (collectively, the “debtors”) made to Sumec in the ninety-day period before it filed for bankruptcy. In re Décor Holdings, Inc., No.

2 21-CV-6725 (GRB), 2023 WL 170595 (E.D.N.Y. Jan. 12, 2023). We DISMISS for lack of jurisdiction.

BACKGROUND

The debtors filed their Chapter 11 petitions on February 12, 2019, naming Sumec, a textile manufacturer located in Nanjing, China, as a creditor. Sumec, however, did not seek to recover from the debtors, to whom it continued to supply textile goods. Instead, it submitted an insurance claim under its policy with state- owned China Export & Credit Insurance Corporation (“Sinosure”) on February 27, 2019. Sinosure paid out a portion of the claim and executed a subrogation agreement with Sumec on October 18, 2019. Sinosure also executed a collection trust deed with Sumec, authorizing Sinosure to collect the full amount of the debt in Sumec’s name. Sinosure hired U.S. collection agency Brown & Joseph, LLC (“B&J”) to collect the debt owed to Sumec. On April 16, 2019, B&J filed a proof of claim in the bankruptcy action in Sumec’s name. The proof of claim represented that “notices to the creditor” should be sent to B&J at a post-office box in

3 Schaumburg, Illinois and listed an email address. Sumec maintai