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§ 363(f)

In re Southcreek Dev. LLC

Ruling
Village could not be compelled to accept settlement of interest in property trustee proposed to sell free and clear.
Procedural posture

This matter was before the court on remand from the United States District Court for the Central District of Illinois following a judgment reversing the court's order finding that a chapter 7 trustee was entitled to sell a debtor's real estate free and clear of the obligations of an amended annexation agreement with a village because a bona fide dispute regarding the validity of the agreement existed under 11 U.S.C.S. § 363(f)(4).

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Commercial opinion summary, case decided on January 06, 2011 , LexisNexis #0211-012

Pacific Capital Bancorp N.A. v. East Airport Dev. LLC (In re East Airport Dev. LLC)

Ruling
Bankruptcy court erred in holding that surplus sale proceeds were cash collateral that could be used by debtors.
Procedural posture

Appellant creditor challenged an order of the U.S. Bankruptcy Court for the Central District of California authorizing sale, by appellee debtor under a purported "release price agreement," of certain real estate free and clear of appellant's lien per 11 U.S.C.S. § 363(f) and the use of its cash collateral per § 363(c)(2). Issues included whether appellant in fact had "consented" to the sale within the meaning of § 363(f)(5).

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on January 05, 2011 , LexisNexis #0311-114

In re FLA Owner VI Inc.

Ruling
Sale of property to non-insider for fair and reasonable compensation approved.
Procedural posture

The chapter 11 debtor filed a motion to establish sales procedures, set a hearing date on the sale, and approve the form of notice concerning the sale of the debtor's interest in its real estate, free and clear of all liens and other interests pursuant to 11 U.S.C.S. § 363(f).

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Commercial opinion summary, case decided on August 18, 2010 , LexisNexis #0111-047

In re C.W. Mining Co.

Ruling
Trustee could assume debtor's coal operating agreements and assign them to buyer, contingent upon closing of sale.
Procedural posture

Debtor mining company was forced into bankruptcy, and a chapter 7 trustee who was appointed to administer the debtor's bankruptcy estate filed a motion seeking permission to assume coal operating agreements (COAs) and related contracts the debtor entered, and a motion for an order authorizing him to assign the COAs and other contracts and to sell the debtor's property. The court conducted hearings on the motions.

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Commercial opinion summary, case decided on March 02, 2010 , LexisNexis #0510-113

In re Bender Shipbuilder & Repair Co.

Ruling
Debtor's proposed bidding procedures for sale of assets approved.
Procedural posture

This matter was before the court on the motion of the debtor for entry of an order approving proposed bidding procedures for submission and acceptance of competing bids for the sale and, as applicable, the assumption and assignment, of certain assets of the debtor and, under certain circumstances, payment of a break-up fee in the amount of $ 800,000.

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Commercial opinion summary, case decided on December 30, 2009 , LexisNexis #0310-008

In re Dewey Ranch Hockey LLC

Ruling
Bid to purchase NHL team free and clear and move it to Canada denied due to lack of adequate protection.
Procedural posture

Debtors, a National Hockey League team and three related entities, filed chapter 11 bankruptcy reorganization cases. The National Hockey League (NHL) and a partnership submitted two competing bids to purchase the team to the court.

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Commercial opinion summary, case decided on September 30, 2009 , LexisNexis #1109-042

In re Jolan Inc.

Ruling
Approval of proposed sale of assets for less than value of liens denied in favor of auction.
Procedural posture

After debtor, a company operating a bar and restaurant in leased space, filed a chapter 7 case, the trustee moved for orders permitting the sale, free and clear of all liens, of debtor's personal property and trade name for a price that was less than the total of all liens. Citing 11 U.S.C.S. § 363, debtor, its principals, and some other parties objected to the motion on grounds including that such an order was improper under the Clear Channel rule.

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Commercial opinion summary, case decided on April 30, 2009 , LexisNexis #0609-076

In re Pick

Ruling
Approval of sale of property to debtor's son denied due to insufficient recovery for creditors.
Procedural posture

The debtors filed for relief under chapter 13 of the Bankruptcy Code. The debtors filed a motion to approve the sale of real and personal property, pursuant to 11 U.S.C.S. § 363(f), a creditor objected to the sale motions. A bank approved the proposed sale. The bank and the creditor both filed separate motions for relief from the stay and the debtors objected to the motions for relief from the stay.

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Consumer opinion summary, case decided on December 18, 2008 , LexisNexis #0209-110

Baylake Bank v. TCGC LLC

Ruling
Village's interest in restrictive covenant was not avoidable.
Procedural posture

Defendant debtor and plaintiff bank, mortgage-holder on property owned by debtor, brought a proceeding against movant village, seeking a determination that certain restrictive covenants on the property were either void on their face, preempted by federal law, or subject to avoidance, and an order directing sale of the property free and clear of such restrictions to a Tribe. Pending were cross-motions for summary judgment by the bank and village.

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Commercial opinion summary, case decided on October 01, 2008 , LexisNexis #1008-112

South Motor Co. v. Carter-Pritchett-Hodges Inc. (In re MMH Auto Group LLC)

Ruling
Bankruptcy sale of property was free and clear of unrecorded lease.
Procedural posture

Plaintiff purchaser of real property in a bankruptcy sale brought an adversary proceeding against defendant lessee under an unrecorded lease of a billboard on the property, seeking a determination that the sale was free and clear of the lessee's interest as stated in the sale order. The lessee asserted that it did not receive notice of the sale and that its interest survived the sale.

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Commercial opinion summary, case decided on March 18, 2008 , LexisNexis #0508-063