In re: PROFESSIONAL TECHNICAL SECURITY SERVICES, INC
- Summarized by Michael Myers , Ballard Spahr LLP
- 4 months 6 days ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- BAP No. NC-22-1220-CBG; BAP No. NC-22-1228-CBG (9th Circuit, Jul 21,2023) Not Published
- Tag(s):
-
- Ruling:
- The Ninth Circuit Bankruptcy Appellate Panel affirmed the bankruptcy court's finding that sale proceeds were cash collateral and its approval of a stipulation with the IRS.
- Procedural context:
- The bankruptcy court approved a sale motion over the limited objection of the unsecured creditors committee, and then overruled the committee's objection to the distribution of the balance of the sale proceeds to the IRS and approved a stipulation of the distribution.
- Facts:
- The debtor had incurred significant federal tax debt prior to its bankruptcy, accounting for 90% of its debt. The debtor filed a chapter 11 bankruptcy and provided replacement liens to its secured creditors, including the IRS, as adequate protection for debtor's use of cash collateral. Debtor filed a 363 sale motion but found only one buyer, which offered less than the total secured debt. The bankruptcy court granted the sale motion, finding multiple bases under section 363(f), and approved the stipulation with the IRS for the distribution of the balance of the sales proceeds after payment of the first-position lienholder and a carve our for the estate and commissions.
- Judge(s):
- Corbit, Brand, and Gan
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