The U.S. Bankruptcy Court has the authority to reopen a case without parties initiating adversary proceedings because it already has jurisdiction over debtors and the assets, the U.S. Court of Appeals for the Third Circuit has ruled in a precedential opinion. The appellate court's opinion reversed the U.S. District Court for the District of Delaware's decision vacating a U.S. Bankruptcy Court for the District of Delaware's order permitting a recreational vehicle retailer to exercise its option to purchase a land parcel because an adversary proceeding was not initiated.
Third Circuit: Bankruptcy Court Can Reopen Case
Delaware Business Court Insider
July 31, 2013