ABA Section of Business Law
eSource
BAP Opinion in Clear Channel Likely to Chill Credit Bids.
- This article discusses the recent BAP decision in Clear Channel Outdoor, Inc. v. Nancy Knupfer, 391 B.R. 25 (B.A.P. 9th Cir. 2008) where the court held that 11 U.S.C. § 363(f) required a sale price above the amount of debt absent consent. More disturbing, the panel held that a buyer who relied in good faith on the sale order had very limited protection and could have a junior lien reimposed on the property in the buyer's hands. This decision may significantly decrease buyers' willingness to rely on bankruptcy court orders.
