In a ruling that was a surprise to many bankruptcy practitioners and professionals, the refusal by the U.S. Supreme Court on April 24 to grant the writ of certiorari in the case of General Motors v Celestine Elliott et al., riddled with uncertainty what had been almost a sacrosanct principle of bankruptcy law.
Section 363 of the Bankruptcy Code provides that following notice and hearing, a bankruptcy trustee may sell assets of an estate free and clear of liens, claims and encumbrances. Since a debtor-in-possession in a Chapter 11 case has the same powers and authority as a bankruptcy trustee in a Chapter 7 case, this provision is equally applicable in bankruptcy reorganization and liquidation proceedings.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
