In re Oneida Lake Development, Inc.
United States Bankruptcy Court for the Northern District of New York
114 B.R. 352 (1990)
Oneida Lake Development, Inc. (Oneida) filed for chapter 11 reorganization and sought to sell its real property, previously appraised at $1,250,000 but since depreciated, under § 363 of the Bankruptcy Code. The highest active bid was $750,000. The property carried three mortgages, three judgments, and delinquent taxes totaling over $1,300,000 in encumbrances, though Oneida had filed to set aside two of the judgments and planned to contest a third, held by Wood Point Venturers (Wood) for $600,000. Wood objected to the proposed sale, and the bankruptcy court held a hearing on whether Oneida satisfied § 363(f)'s conditions for a sale free and clear of liens.
Whether, under § 363(f)(3) of the Bankruptcy Code, a bankruptcy trustee may sell estate property free and clear of any liens in the property if the sale price is greater than the aggregate value of all liens in the property.