HHR Bankruptcy Report

Category Archives: Section 363

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Third Circuit Allows Debtors’ Funds Purchased in Section 363 Sale to Bypass IRS and be Distributed to Administrative and Unsecured Creditors

Posted in Delaware, Section 363, Third Circuit
The Third Circuit has affirmed the Delaware Bankruptcy Court’s approval of a section 363 sale and related settlement agreement over IRS’s objection to provisions in the sale and settlement agreements that provide payments to unsecured creditors and other administrative creditors while leaving the IRS with no recovery. While the IRS argued that the sale and… Continue Reading

Second Circuit Stands By Expansion of Section 363 Review in Chapter 15 Proceedings

Posted in Chapter 15, Second Circuit, Section 363
On Wednesday, January 14th, 2015, the Second Circuit declined to grant an en banc review of its holding requiring a full Section 363 review of a claims sale in a Chapter 15 proceeding in the case of In Re: Fairfield Sentry Ltd.  This decision left intact the Second Circuit’s earlier holding that dramatically expanded the… Continue Reading

In re Fisker: Delaware Bankruptcy Court Imposes Roadblock to Credit Bidding

Posted in Chapter 11, Delaware, Section 363
In considering a Section 363 asset sale in In re Fisker Automotive Holdings, Inc., , the United States Bankruptcy Court for the District of Delaware used its “for cause” power under Section 363(k) to limit the proposed purchaser’s credit bid and trigger a competitive cash auction for the debtor’s assets.  2014 WL 210593 (Bankr. D.… Continue Reading