Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The ability of a trustee to sell bankruptcy estate assets free and clear of competing interests in the property has long been recognized as one of the most important advantages of a bankruptcy filing as a vehicle for restructuring a debtor's balance sheet and generating value. Still, section 363(f) of the Bankruptcy Code, which delineates the circumstances under which an asset can be sold free and clear of 'any interest in such property,' has generated a fair amount of controversy. This is so because the statute itself does not define 'interest.'
Although generally acknowledged to encompass liens and security interests, section 363(f)'s scope would appear to be much broader, based both upon the language of the statute and its underlying purpose. So much so, in fact, that it has even been interpreted to permit sales free and clear of claims (eg, successor liability) and in rem property interests (such as covenants and easements) that are generally inalienable under common law. Broadly applied, section 363(f) also arguably conflicts with certain other provisions of the Bankruptcy Code. How best to resolve this conflict in a way that preserves the integrity of Bankruptcy Code by harmonizing its provisions was the subject of a case of apparent first impression in the Circuit Courts of Appeal. In Precision Industries, Inc. v. Qualitech Steel SBQ, LLC (In re Qualitech Steel Corp.), 2003 WL 1918405 (7th Cir. Apr. 23, 2003), the Seventh Circuit ruled that a court order approving the sale of real property under section 363(f) extinguished a tenant's possessory rights in the property despite the protection afforded to non-debtor lessees under section 365(h)(1) of the Bankruptcy Code.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.