§ 363

In re Allied Holdings Inc.

Debtors, who had filed voluntary petitions under chapter 11, filed a motion for approval of a key employee retention program ("KERP") pursuant to 11 U.S.C. § 363(b). The KERP was supported by the official committee of unsecured creditors and the debtors'postpetition lenders but opposed by a union committee and the U.S. trustee.
Ruling: 
Court provided that it would approve a key employee retention program with certain amendments to the program since the debtors had a sound business reason for proposing the program.
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Genova v. ESM Realty Trust (In re Stoll)

Plaintiff, the chapter 7 trustee, sued defendants, two trusts and three individuals, including debtor, who each held a one-third interest in the trusts. The trustee alleged two causes of action. The first cause of action was for turnover of property of the bankruptcy estate pursuant to 11 U.S.C. § 542. The second sought a sale of the trusts'property pursuant to 11 U.S.C. § 363(h). The parties filed a motion for summary judgment.
Ruling: 
Beneficiaries, including the debtor, were deemed joints tenants in common of the assets of a trust, and the trustee was permitted to sell the trust property to obtain the estate's interest in the trust.
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In re Toms Foods Inc.

The chapter 11 debtor in possession filed an expedited motion for authorization to schedule an auction for the sale of substantially all of the debtor's assets free and clear of all liens, claims, and interest. The motion also requested approval of certain bidding procedures which would govern the auction.
Ruling: 
Expedited motion authorizing scheduling of auction of most of debtor's assets was granted since sale would later have to be reviewed and approved by the court.
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