2016-04-25_GENERAL DOCUMENTS - C1982056 ‎(5)‎

• Permit No: C1982056
• IBM Index Class Name: General Documents
• Doc Date: 4/25/2016
• Doc Name: Motion of the Debtors and Debtors in Possession
• From: United States Bankruptcy Court
• To: DRMS
• Permit Index Doc Type: General Correspondence
• Email Name: MPB
• Email Name: JRS
• Email Name: JLE
• Media Type: D
• Archive: No

Case 16-42529 Doc 32 Filed 04/13/16 Entered 04/13/16 11:43:47 Main Document
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estate." 11 U.S.C. § 363(b)(1). A debtor's decisions to use, sell or lease assets outside the
ordinary course of business must be based upon a sound business purpose. See In re Channel
One Commc'ns, Inc., 117 B.R. 493,496 (Bankr. E.D. Mo. 1990) (citing Comm. of Equily Sec.
Holders v. Lionel Cort. (In re Lionel Corp.), 722 F.2d 1063, 1071 (2d Cir. 1983)). See also TLP
Servs. LLC v. Stoebner (In re Polaroid Corp.), 460 B.R. 740, 741-42 (B.A.P. 8th Cir. 2011)
(allowing a trustee, pursuant in part to section 363(b)(1), to use cash collateral to fund efforts to
recover funds from third parties); accord Comm. of Equity Sec. Holders v. Lionel Corp. (In re
Lionel Com.), 722 F.2d 1063, 1070-71 (2d Cir. 1983) (requiring a "good business reason" to
approve a sale pursuant to section 363(b)); In re W.A. Mallory Co. Inc., 214 B.R. 834, 836
(Bankr. E.D. Va. 1997) ("This Court follows the 'sound business purpose' test when examining
§ 363(b) sales.") (citing WBQ P'ship v Va. Dep't of Med. Assistance Servs. (In re WBQ P'ship),
189 B.R. 97, 102 (Bankr. E.D. Va. 1995)); Official Comm. Of Unsecured Creditors of LTV
Aerospace & Def. Co. v. LTV Corp. (In re Chateaugay Corp.), 973 F.2d 141, 143 (2d Cir. 1992)
(holding that the sale of property of the estate is justified if it is supported by a good business
reason); In re Ionosphere Clubs, Inc., 100 B.R. 670, 675 (Bankr. S.D.N.Y. 1989) (noting that the
standard for determining a motion pursuant to section 363(b) of the Bankruptcy Code is "a good
business reason").
18. Courts have consistently been reluctant to interfere with corporate decisions
unless "it is made clear that those decisions are, inter alia, clearly erroneous, made arbitrarily, are
in breach of the officers' and directors' fiduciary duty to the corporation, are made on the basis of
inadequate information or study, are made in bad faith, or are in violation of the Bankruptcy
Code." In re Farmland Indus., Inc., 294 B.R 855, 881 (Bankr. W.D. Mo. 2003) (citing In re
United Artists Theatre Co., 315 F.3d 217, 233 (3d Cir. 2003), Richmond Leasing Co. v. Capital