The general rule is that claims of the bankruptcy estate against third parties (e.g., preference claims and tort claims) can be sold to third parties in a § 363 sale.[Fn. 1]
However, a recent opinion from the U.S. Fifth Circuit Court of Appeals discusses whether a state’s champerty law impairs a § 363 sale.[Fn. 2]
USA, Mississippi, Nebraska, Insolvency & Restructuring, Litigation, Koley Jessen PC, Bankruptcy, Allstate, Fifth Circuit, US Court of Appeals
Four U.S. Supreme Court justices (Kagan, Kavanaugh, Roberts and Sotomayor) provide the following summary of their Purdue Pharmadissent in the Purdue Pharma case.
Wrong & Devastating
Today’s five-justice majority opinion is wrong on the law and devastating for more than 100,000 opioid victims and their families:
USA, Nebraska, Insolvency & Restructuring, Litigation, Koley Jessen PC, Bankruptcy, Dow Corning, Supreme Court of the United States