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In Re Motor Liquidation
(U.S., filed January 17, 2017): Arguing that in a 363 sale, the Due Process Clause does not require a seller to notify creditors of the basis for any potential claims against the debtor. By imposing a novel and unjustifiable notice requirement, the Court is hindering debtors’ ability to sell their assets quickly. And by threatening buyers with the loss of their “free and clear” protection, the decision deprives estates of a critical tool for maximizing creditor recovery. The decision will perpetuate the kind of abusive, lawyer-driven litigation that will offer little in the way of relief for the class members and will provide an enormous windfall for the plaintiffs’ lawyers who bring them.
Petition for cert was denied on April 24, 2017.
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