In re Temecula Valley Bancorp, Inc.

FDIC-RECEIVER’S MOTION' TO WITHDRAW THE BANKRUPTCY REFERENCE (Dkt. No. 9, filed November 5, 2014)

I. INTRODUCTION

On September 24, 2014, Helen R. Frazer, Chapter 7 Trustee of Temecula Valley Bancorp. Inc. (“the Trustee”), filed this adversary proceeding in the U.S. Bankruptcy Court for the Central District of California against defendant Federal Deposit Insurance Corporation (“FDIC”) in its capacity as Receiver of Temecula Valley Bank (the “Bank”). Dkt. No. 2 Ex. C. (“Compl.”). The Trustee seeks a declaration that the bankruptcy estate of Temecu-la Valley Bancorp, Inc. (“Bancorp”) is entitled to ownership of certain tax refunds currently held in an escrow account. See generally id. On November 5, 2014, the FDIC filed its amended motion to withdraw the bankruptcy reference and have the adversary proceeding heard in this Court. Dkt-. No. 9. The Trustee filed an opposition on November 17, 2014. Dkt. No. 12. The FDIC replied on November 24. Dkt. No. 17. On December 8, 2014, the Court held a hearing on the matter. For the reasons that follow, the Court DENIES the motion.

II. BACKGROUND

In 2002, a non-bankruptcy corporate reorganization made Bancorp the parent *213 corporation of…