The U.S. Court of Appeals for the Tenth Circuit recently resolved a six-year battle over the domain name freecreditscore.com, affirming (i) the confirmation of a Chapter 11 plan jointly proposed by the bankruptcy trustee and the successful §363 bidder for the domain name over a competing plan filed by an unauthorized transferee of the bankrupt; and (ii) the determination in an adversary proceeding against the putative owner/transferee that restored the domain name to the bankruptcy estate and, in turn, to the successful §363 bidder.
Not surprisingly, the decision reached issues of standing and mootness. The outcome was driven, however, by relatively well-established bankruptcy law principles: Actions in violation of the automatic stay, including unauthorized post-bankruptcy asset transfers, are void ab initio; there is no exclusive right to propose a plan once a trustee is appointed; and the terms of a court-approved purchase agreement may serve to limit §363 sales “free and clear” of liens and interests, but such agreements and the accompanying sale order will be respected.1
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