Bankruptcy Asset Sale Not So 'Free And Clear' After All
Mondaq Business Briefing › United States Law Articles in English (2011)
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Bankruptcy Asset Sale Not So 'Free And Clear' After All
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The ability to sell an asset in bankruptcy free and clear of liens and any other competing "interest" is a well-recognized tool available to a trustee or chapter 11 debtor in possession ("DIP"). Whether the category of "interests" encompassed by that power extends to potential successor liability claims, however, has been the subject of considerable debate in the courts. A New York bankruptcy court recently addressed this controversial issue in Olson v. Frederico (In re Grumman Olson Indus., Inc.), 445 B.R. 243 (Bankr. S.D.N.Y. 2011). In Grumman Olson, the court ruled that a...See the full content of this document
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