The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law.
Minnesota Bankruptcy Case:
Asset Based Research Group, LLC v. United States Trustee (In re Polaroid Corporation), 611 F.3d 438 (8th Cir. (Minn.) 7/9/10) (per curiam).
Appeal from Sale Free and Clear Solely to Preserve Lien is Moot
The Eighth Circuit Court of Appeals dismisses the appeal of a lien creditor who argues that the Code’s finality principles should not apply to the appeal from a sale free and clear. The bankruptcy court approved a sale of Polaroid’s assets, free and clear of liens, including liens of the appellant. On appeal, the appellant argued that the finality provision of § 363(m) does not apply to a § 363(f) sale, because § 363(m) mentions only §§ 363(b) or (c), and that the appellant seeks only to preserve its lien and not to reverse the sale. In dismissing the appeal as moot, the 8th Circuit notes that § 363(f) is not an alternative to (b) and (c), but rather incorporates them; so the sale was under (b) and therefore protected by (m). Moreover, the relief the appellant seeks would have the effect of thwarting the sale, so the normal finality rules apply.
Credit: The preceding was a summary of a case relevant to Minnesota bankruptcy law. The case summary was prepared by the U.S. Bankruptcy Court through Judge Robert J. Kressel & attorney Faye Knowles.