Affirmed by published opinion. Judge WILLIAMS wrote the opinion, in which Judge TRAXLER and Senior Judge HAMILTON joined.
OPINION
Appellants Sanford Kreisler and Bask Holdings, LLC (collectively “Kreisler”), debtors in a voluntary Chapter 11 case, appeal the district court’s order affirming the bankruptcy court’s denial of Kreisler’s “Motion for Sanctions for Alleged Violation of the Automatic Stay, to Void Ejectment and to Turn Over Property and Rents Collected.” Kreisler argues that Appellees Glenn H. Goldberg and SRG Properties No. 5, LLC (collectively “Goldberg”) violated the automatic stay under 11 U.S.C.A. § 362(a) (West 2004 & Supp. 2006) by pursuing an ejectment action against the debtors’ wholly-owned subsidiary in Maryland state court. Because the district and bankruptcy courts did not err in finding that the automatic stay did not apply to actions against Kreisler’s non-bankrupt subsidiary corporation, we affirm.
I.
This case involves the consolidated bankruptcy estates of Sanford Kreisler and Bask Holdings, LLC (“Bask”). Bask filed a voluntary petition for Chapter 11 bankruptcy protection in December 2001, and Sanford Kreisler’s Chapter 11 petition followed in May 2002, (J.A. at 39-95). 1 On February 19, 2003, the United States Bankruptcy Court for the District of Maryland ordered that the estates of the two debtors be substantively consolidated.
Bask’s wholly-owned subsidiary, Just Holdings, LLC (“Just”), was a party to a ground rent lease on a property known as 1741 Bond St., Baltimore, Maryland. (“the property”). 2 The property was *212 titled in Just’s name, and Goldberg owned the ground rent. Just’s interest in the property represented its only asset and the reason for the company’s organization.
On July 31, 2002, Goldberg 3 initiated an action for ground rent it claimed was due on the property by filing a Complaint in Ejectment in the Circuit Court for Baltimore City. The circuit court entered a default judgment against Just on November 15, 2002. Pursuant to Bask’s bankruptcy, the Bankruptcy court issued a Notice of Automatic Stay, which Kreisler filed in the ejectment action on December 30, 2002, and the circuit court accordingly stayed further proceedings in the ejectment action. On June 16, 2003, Goldberg filed a motion to terminate the stay. The circuit court granted the motion on July 8, 2003. On November 29, 2003 and again on December 27, 2003, the bankruptcy court denied Bask’s motion to enforce the automatic stay regarding the property.
The property was sold at auction on March 16, 2005, but the sale ultimately fell through, presumably because the purchaser was unable to obtain title insurance due to the cloud on the title created by the case before us. On March 22, 2005, Bask and Just filed an “Expedited Motion for Violation of the Automatic Stay, to Void Ejectment Action and to Turn Over Property and Rents Collected” in the bankruptcy court. The bankruptcy court denied the motion on April 7, 2005. On April 28, 2005, the bankruptcy court denied a motion for reconsideration. Kreisler appealed to the district court on May 10, 2005. The district court affirmed, and this appeal followed. We have jurisdiction pursuant to 28 U.S.C.A. § 158(d) (West 2006) (conferring jurisdiction on courts of appeals to review final decisions of district courts reviewing bankruptcy decisions).
II.
“We review the judgment of a district court sitting in review of a bankruptcy court
de novo,
applying the same standards of review that were applied in the district court.”
In re Duncan,
Pursuant to 11 U.S.C.A. § 362(a), 4 the filing of a Chapter 11 bankruptcy peti *213 tion automatically stays all proceedings against the bankruptcy debtor and all actions to obtain possession of or to exercise control over property of the bankruptcy estate. 11 U.S.C. § 362(a)(1), (3). Kreisler argues that Bask, one of the bankruptcy debtors, should be treated as the real party in interest in the suit against Just, that the ground rent realty was property of Kreisler’s bankruptcy estate, and that even if it was not, the automatic stay should have nevertheless applied. We address these arguments in turn.
A.
Section 362(a)(1) of Chapter 11 of the Bankruptcy Code stays “the commencement or continuation ... of a judicial ... action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title.” 11 U.S.C.A. § 362(a)(1). “Subsection (a)(1) is generally said to be available only to the debtor, not third party defendants or co-defendants.”
A.H. Robins Co., Inc. v. Piccinin,
In the instant case, there exists no basis for us to conclude that there is such identity between Bask and its wholly owned subsidiary, Just, that a judgment against Just would effectively operate as a judgment against Bask. It is a fundamental precept of corporate law that each corporation is a separate legal entity with its own debts and assets, even when such corporation is wholly owned by another corporate entity.
See Turner v. Turner,
B.
Subsection 362(a)(3) automatically stays “any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate.” 11 U.S.C.A. § 362(a)(3). Kreisler argues that Bask’s interest in Just represents property of the bankruptcy estate. As the district court recognized, Bask does have an interest in Just and this interest in the subsidiary corporation does form part of Kreisler’s bankruptcy estate. The fact that a parent corporation has an ownership interest in a subsidiary, however, does not give the parent any direct interest in the
assets
of the subsidiary. Although Bask could have established an ownership interest in the property, it chose not to do so. Instead, it created an LLC for the purpose of holding title to the property. Having assumed whatever benefits flowed from that decision, it cannot now ignore the existence of the LLC in order to escape its disadvantages.
See Terry v. Yancey,
C.
Kreisler argues that even if the property was not part of the bankruptcy estate, the automatic stay nevertheless applies to the ejectment action because Just’s loss of its property would cause Bask’s interest in Just to lose value. Just existed for the sole purpose of holding title to the property and had no other assets. Kreisler contends that, as a result, Bask’s ownership interest in Just would lose all value if Just were ejected from the property. The fact that Bask’s interest in Just may lose value, however, is not dispositive. The nature and extent of Bask’s interest in Just remains unchanged by Just’s loss of the property. For this reason, courts faced with similar situations have held that an automatic stay does not prevent a non-debtor company from taking an action that might affect the value of a debtor’s stock,
see In re Calvert,
In contrast, courts have held that an action against a third party is barred by § 362(a)(3) when a judgment against the third party would effectively operate to foreclose on property of the bankruptcy estate, depriving a debtor of an interest in property, rather than merely affecting an asset’s value.
See 48th Street Steakhouse,
*215
Inc. v. Rockefeller Group, Inc.,
D.
We note that although the automatic stay under 11 U.S.C.A. § 362(a) is inapplicable to the ejectment action, Kreisler could have sought injunctive relief if he believed that the ejectment action would deprive them of funds needed for their reorganization or put detrimental pressure on their reorganization effort, as 11 U.S.C.A. § 105(a) gives the bankruptcy court jurisdiction to “issue any order, process, or judgment that is necessary to carry out the provisions of this title.” 11 U.S.C.A. § 105(a) (West 2004 & Supp. 2006). This provision “empowers the bankruptcy court to enjoin parties other than the bankrupt from commencing or continuing litigation.”
Piccinin,
III.
In sum, we conclude that the automatic stay under 11 U.S.C.A. § 362(a) did not apply to Goldberg’s ejectment action against Just because the proceeding was not against a bankruptcy debtor and was not an action to obtain ownership or control of property of Kreisler’s bankruptcy estate. Accordingly, we affirm the district court’s order affirming the bankruptcy court’s denial of Kreisler’s “Motion for Sanctions for Alleged Violation of the Automatic Stay to Void Ejectment and to Turn Over Property and Rents Collected.”
AFFIRMED.
Notes
. Sanford Kreisler and Barbara Kreisler had a 99.5% ownership interest in Bask as Tenants by the Entireties, and Sanford Kreisler had a 0.5% ownership interest in Bask.
. Ground rent leases are rare in most states but "have been used in Maryland since Colonial days.”
Moran v. Hammersla,
. The ground rent was originally held by two persons in their individual capacities and as trustees of five separate trusts, all trading together as "S. Goldberg-Cust.” These two people initiated the ejectment action as plaintiffs. They are the members of SRG Properties No. 5, LLC ("SRG”), and during the course of the ejectment action, SRG was substituted for the individuals as the plaintiff. According to Goldberg’s brief, SRG is now the only party in interest in the ejectment action.
. The 2006 amendments to the Bankruptcy Act do not alter 11 U.S.C.A. § 362 (West 2004 & Supp.2006) in any way relevant to this appeal.