Introduction The United States District Court for the Southern District of New York recently upheld a bankruptcy court decision that demonstrates the importance of meaningfully disclosing to a bankruptcy court and parties in interest any material modifications to an agreement for the purchase of assets in a bankruptcy. Though the district court focused on the core contractual dispute at issue, the underlying bankruptcy courtâs bench ruling shined a light on the importance of meaningful disclosure…
Introduction A recent decision from the U.S. Court of Appeals for the Seventh Circuit provides insight into the pitfalls that can befall a buyer of assets in a bankruptcy if it is not found to be a âgood faithâ purchaser under section 363(m) of the Bankruptcy Code. On April 4, 2022, many years after a bankruptcy sale closed, the Seventh Circuit ruled that a buyer who purchased assets of a debtor in bankruptcy under section…