re receiver during appeal
I am more than a little puzzled as to how a receiver could be appointed while the appeal remains outstanding. I suppose foreigners like me wont easily understand US laws in this regard.
I've actually collected judgments in Texas, so this one is up my alley.
Once a judgment has been entered, the party holding the judgment can enforce it. The only way to stay enforcement pending appeal is to post a bond in the amount of the judgment as surety against the risk the losing party will squander in litigation the money the trial court thought should be paid to the winner of the judgment.
Appeal bonds are not free; they cost money. Normally, a company operating in the U.S. doesn't want the disruption of a receiver seizing assets needed in the business, however, and posts bond. ETLT doesn't have any US operations, and doesn't have any US property, so ETLT has very little reason to fear collections efforts during the pendency of the appeal.
Since ETLT hasn't paid the judgment, and the judgment hasn't been stayed by an appeal bond, the judgment is payable immediately. Because ETLT has no US assets but has US debts, it easily meets the definition of insolvency under the Bankruptcy Code, so the bankruptcy proceeding is lawful. However, it's fruitless because there's nothing here to collect. Also, if the appeal of the judgment succeeds, the bankruptcy proceeding will become moot.
China hasn't got a treaty on cross-border recognition of judgments from the US, so collections in China isn't a risk, and impairment of operations isn't a risk. Suing ETLT in the US is frankly a fool's errand, unless ETLT has truly awful representation, because the US judgment is worthless in the jurisdiction containing all the assets against which one would want to collect.
Take care,
--Tex.
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