  |
  |
  |
    
  
   |
 | |||
|
|
|
|
| |||
court examined these principles (generally addressed by the case law in the context of confirmation of plans) in the context of section 363 sales. The court ultimately concluded that "[e]nforcing the Sale Order against the Fredericos to take away their right to seek redress under a state law theory of successor liability when they did not have notice or an opportunity to participate in the proceedings that resulted in that order would deprive them of due process." The court noted that this due process right outweighed any Bankruptcy Code policy of maximizing the value of the estate. Accordingly, the court affirmed the bankruptcy court's dismissal of Morgan's declaratory judgment action.
xiv. In re PBBPC, Inc., 467 B.R. 1 (Bankr. D. Mass. 2012)
Issue: Whether the section 363 sale of substantially all of the debtor's assets free and clear meant that the purchaser acquired those assets free of the Debtor's experience and contribution rates as had been assigned to the Debtor by the DUA prior to the sale.
Holding: The court held that the DUA's right under state law to tax the purchaser of the debtor's assets as a successor to the Debtor was an "interest" within the meaning of section 363(f), and that that interest was one for which the DUA could be compelled to accept a money satisfaction.
i. In re Colony Beach and Tennis Club, Inc., 508 B.R. 468 (Bankr. M.D. Fla. 2014)
Issue: Whether secured creditor was late in making 1111(b) election.
Holding: Undersecured creditor's 1111(b) election could not be stricken as untimely filed after conclusion of plan confirmation hearing, where, following presentation of evidence at plan confirmation hearing, court had continued the hearing for consideration of post-trial briefs, and creditor made its statutory election before post-trial briefs were due.
ii. In re River Canyon Real Estate Investments, LLC, 495 B.R. 526 (Bankr. D. Colo. 2013)
Issue: Whether only one member of a two-member secured class, with liens of equal priority on the same collateral, may validly make an 11 U.S.C. § 1111(b) election to treat its claim as fully secured rather than bifurcated.
Holding: The bankruptcy court held that only one member of a two-member secured class, with liens of equal priority on the same collateral, may not validly make an election under 11 U.S.C. § 1111(b) to treat its claim as fully secured rather than bifurcated. The court analyzed Section 1111(b)(1)(A)(i) of the Bankruptcy Code that requires at least two-thirds in the amount and more
©2014 William L. Norton III
