Bankruptcy Advisory: Are Bankruptcy Sales Finally Final?
7/8/2011
Since it was issued three years ago by the Ninth Circuit Bankruptcy Appellate Panel, the Clear Channel decision has been widely criticized as “an aberration in well-settled bankruptcy jurisprudence.” Before Clear Channel, conventional wisdom (and what most people perceived to be the law) supported the notion that a bankruptcy sale order that contained a good faith finding under Section 363(m) could not be disturbed on appeal. Clear Channel deeply shook all confidence in the finality of Section 363 sales. The decision has been assailed by various courts, but only recently has a district court within the same jurisdiction flatly refused to follow Clear Channel’s “unpersuasive” logic.
