The Delaware bankruptcy court recently denied a debtors’ motion to sell real estate free and clear of a bank’s senior liens on the properties. The court rejected the debtors’ arguments that the bank could be compelled to take less than the full amount of the bank’s debt under section 363(f)(5) of the Bankruptcy Code. The decision is a useful reminder that, in some jurisdictions, a bank holding senior liens may be entitled to veto any sale that does not result in payment-in-full.

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