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In re Hamilton Road Realty LLC

2021 WL 1620046 (2021)

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In re Hamilton Road Realty LLC

United States Bankruptcy Court for the Eastern District of New York
2021 WL 1620046 (2021)

Facts

Hamilton Road Realty LLC (debtor) filed for Chapter 11 bankruptcy. Hamilton’s case was later converted to a Chapter 7 proceeding, and a trustee was appointed. The trustee sought to sell a piece of commercial property owned by Hamilton. The property was subject to a first mortgage, a junior mortgage, tax liens, and several judicial liens. The total face amount of the liens substantially exceeded the proposed sale price of $1.92 million. The trustee filed a motion seeking the authority to sell the property to a third party free and clear of all liens, claims, and encumbrances pursuant to 11 U.S.C. §§ 363(b) and (f), subject to higher and better offers. Hamilton opposed the motion, arguing that the trustee could not satisfy the requirements of § 363(f) with respect to the judicial liens. The trustee responded that either § 363(f)(3) or § 363(f)(5) was satisfied.

Rule of Law

Issue

Holding and Reasoning (Grossman, J.)

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