You are here

In re Clinch Mountain Finishing (Case No. 10-72574) 12/09/2010

Court denied the debtor's motion to sell substantially all of its assets pursuant to Section 363 through an expedited court-supervised process prior to the filing of a plan of reorganization or liquidation for the following reasons:  proposed bidding procedures were not adequate regarding terms of credit bid; no indication that debtor exercised an independent business judgment with respect to appropriateness of proposed bidding procedures; no consideration of selling assets individually; proposed sale date did not provide sufficient time for well thought out, properly advertised and expertly conducted sale to take place nor did it allow adequate time for any disputes as to ownership of assets to be resolved; proposed sale was to take place prior to first meeting of creditors and before unsecured creditors' committee had reasonable opportunity to begin to function; and lack of  adequate notice to creditors (failure to address conflicting interests of principals, description of assets to be sold and effect of such sale upon subsequent conduct of the case).

Date: 
Thursday, December 9, 2010
Category: 
363 Sales
Sale of Property
Chapter: 
11