In Re Savage Industries, Inc., Debtor. Western Auto Supply Company v. Savage Arms, Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• refusing to enjoin successor liability claim against firearm manufacturer despite “free and clear” provision in asset purchase agreement between debtor and purchaser because no attempt had been made to provide notice of the sale to potential claimants
• “Under the Code ... the debtor in possession or trustee must ensure ‘parties in interest’ adequate notice and opportunity to be heard before their interests may be adversely affected.”
• in case where claimant did not receive adequate notice of asset sale, rejecting argument that refusing to enforce “free and clear” provision of asset purchase agreement would “ ‘chill’ chapter 11 asset bidding”
• “Under the Code ... the debtor in possession or trustee must ensure ‘parties in interest’ adequate notice and opportunity to be heard before their interests may be adversely affected.”
• where sale of substantially all of Chapter 11 debtor’s assets was essentially equivalent to confirmation of a Chapter 11 plan, parties in interest who did not receive notice could not, consistent with due process, be bound by terms of sale
• “Notice is the cornerstone underpinning bankruptcy code procedure . . . . Under the Code . . . the debtor in possession or trustee must ensure ‘parties in interest’ adequate notice and opportunity to be heard before their interests may be adversely affected.”

Source: CourtListener parenthetical corpus (CC0).