Bankruptcy Courts Allowed to Reopen Section 363 Auctions

A bankruptcy judge's mandate, and the purpose of a section 363 sale process, is to obtain the "highest and best" offer for the assets. Finality and integrity of the process are also important policy considerations. Bankruptcy sales are designed to facilitate the estate's ready realization of value from its assets, while at the same time giving purchasers some degree of certainty that they will obtain clear title to an asset, without the fear of having the transaction later reversed. At times, however, these principles may be in conflict, as outlined by the Seventh Circuit.

22 minute read August 31, 2004 at 09:12 AM
By
Tanvir Alam And Scott J. Friedman
Bankruptcy Courts Allowed to Reopen Section 363 Auctions

A bankruptcy judge's mandate, and the purpose of a section 363 sale process, is to obtain the “highest and best” offer for the assets. Finality and integrity of the process are also important policy considerations.

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