Bankruptcy Appellate Panel (BAP) Confirms 363 Sale Order
On February 23, 2016, the 9th Circuit Bankruptcy Appellate Panel (BAP) confirmed a Bankruptcy Court (N.D. of California) order approving chapter 11 trustee Peter Kravitz’s section 363 sale of property (and a related good faith finding) in the matter of In re The Zuercher Trust of 1999. During the course of the chapter 11 case, trustee Kravitz was represented by Steve Gubner of BG Law.
Following entry of the initial order approving the chapter 11 trustee’s sale of an estate asset, the case converted to a chapter 7 and the closing of the sale to the good faith buyer was administered by chapter 7 trustee E. Lynn Schoenmann. The Debtor and its controlling representative had appealed the sale order claiming it was not in good faith and that the chapter 11 trustee had not obtained the true market value of the asset. The BAP concluded, based on the merits of the record before it, that the chapter 11 trustee’s marketing and sales efforts properly established market value of the sold asset, and established the good faith of the purchaser.