Fifth Circuit and lower bankruptcy courts have emphasized circuit’s broad interpretation of section 363m of Bankruptcy Code which protects bankruptcy sales from overturned on appeal. In re Royal Street Bistro, LLC, et al., No. 21-2285 summary of the Fifth Circuit case law.
The ability of a trustee or chapter 11 debtor-in-possession ("DIP") to sell bankruptcy estate assets "free and clear" of competing interests in the property has long been recognized as.
Reaching an outcome in line with two other circuit courts, on February 16, 2022 the Fifth Circuit Court of Appeals permitted a Chapter 11 trustee to sell a debtor's real property free.
Reaching an outcome in line with two other circuit courts, on February 16, 2022 the Fifth Circuit Court of Appeals permitted a Chapter 11 trustee to sell a debtor’s real property free.