In re Patriot Place, Limited
United States Bankruptcy Court for the Western District of Texas
486 B.R. 773 (2013)
Patriot Place, Ltd. (Patriot) owned commercial property leased in part to Three-Legged Monkey (Monkey). After filing for chapter 11 reorganization, Patriot sought to sell the property under § 363(f) of the Bankruptcy Code free and clear of Monkey's leasehold interest, relying on the bona-fide-dispute condition and the condition that Monkey could be compelled to accept money in place of its interest. Monkey objected, arguing none of § 363(f)'s five conditions were satisfied.
Whether, under § 363(f) of the Bankruptcy Code, bankruptcy estate property may be sold free and clear of all encumbrances if the sale meets one of the five conditions set forth under the section.