Division of property in bankruptcy permits trustees, with creditors' committee approval, to distribute unsaleable assets in kind. The bankruptcy trustee may, with committee of creditors' approval, divide among creditors any estate property that cannot be readily sold, in its existing form and according to estimated value, with approval required for each transaction; persons dealing in good faith for value need not verify such approval. The committee may ratify unauthorised trustee acts to permit payment of estate expenses provided it is satisfied the trustee acted in urgency and sought ratification without undue delay.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Division of property in bankruptcy permits trustees, with creditors' committee approval, to distribute unsaleable assets in kind.
The bankruptcy trustee may, with committee of creditors' approval, divide among creditors any estate property that cannot be readily sold, in its existing form and according to estimated value, with approval required for each transaction; persons dealing in good faith for value need not verify such approval. The committee may ratify unauthorised trustee acts to permit payment of estate expenses provided it is satisfied the trustee acted in urgency and sought ratification without undue delay.
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