In re PTI Holding Corp. (Homestead Holdings, Inc. v. Broome & Wellington)

Steven and David Greenstein (the Greensteins) acquired Homestead Holdings, Inc. (Homestead) and, through it, the assets of London Fog Industries, purchasing assets from Broome & Wellington (B&W) with the Greensteins and Greenco Enterprises Company, Inc. personally guaranteeing the purchase price under an agreement designating English law. After Homestead filed for bankruptcy and B&W filed a roughly $7 million proof of claim, B&W notified the Greensteins it would sue in England to enforce their personal guarantees; Homestead sought a preliminary injunction against that English suit, arguing it would distract the Greensteins — who essentially were Homestead — from Homestead's newly profitable reorganization efforts, and that the Greensteins' personal wealth was too tied up in London Fog to satisfy any English judgment before reorganization concluded.