Category Archives: Bankruptcy Sales

Bankruptcy Sales

363 Sales: Watch It – A Good Faith Deposit May Not Be As Reliable For Protection As You Thought

The Brown Publ’g Co. Liquidating Trust v. Brown Media Corp. (In re Brown Publ’g Co.), 486 B.R. 46 (Bankr. E.D.N.Y. 2013) – A stalking horse (BMC) was the winning bidder in a section 363 bankruptcy sale.  After the sale to BMC failed … Continue reading

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Bankruptcy Sales: Can LLC Interests Be Sold Over a Member’s Objections?

Horizons A Far, LLC v. Richard Webber (In re Soderstrom), 484 B.R. 874 (M.D. Fla. 2013) – The debtors (Soderstroms) owned 50% of Plaza N 15 Partners, LLC.  The bankruptcy trustee (Webber) proposed to sell the debtors’ interests in the limited … Continue reading

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Sales “Free and Clear”: What is an “Interest”?

In re Mundy Ranch, Inc., 484 B.R. 416 (Bankr. D. N.M. 2012) – In Mundy Ranch, a corporate debtor moved to sell real estate that it owned free and clear of interests under Section 363(f) of the Bankruptcy Code.  A … Continue reading

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Bankruptcy Sale Offers: Highest Is Not Always Best

In re Diplomat Construction, Inc., 481 B.R. 215 (Bankr. N.D. Ga. 2012) – Is there an obligation to sell to the highest bidder in a bankruptcy sale?  In Diplomat Construction, the court approved a sale to a bidder that offered less … Continue reading

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Bidders Beware: Collusion to Control Sale Price Is Subject to Sanctions

Boyer v. Gildea, 475 B.R. 647 (N.D. Ind. 2012) – In Gildea, the bankruptcy trustee claimed that a group of insiders colluded with the purchaser of the debtor’s assets at a Section 363 auction to control the sale price.  Consequently … Continue reading

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Challenging a Bankruptcy Sale: You Snooze, You Lose

Reynolds v. Rushton, 473 B.R. 436 (D. Utah 2012) – Reynolds involves a challenge to a Chapter 7 trustee’s Section 363 sale of an underground coal mine together with an adjoining scale house located on leased land.  The scale house contained … Continue reading

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