New Industries, Inc. v. Byman

The bankruptcy trustee invoked both equitable and statutory mootness to try and block an appeal of a bankruptcy court's approval of a sale of key estate assets, including a settlement necessary to facilitate the transaction. The Fifth Circuit held that equitable mootness was inappropriate, because the settlement and sale were not sufficiently complex.However, the court held that 11 U.S.C. 363(m) made the bankruptcy court's approval the final word on the subject when the objector did not obtain a stay of that ruling. In this case, the bankruptcy court noted that there was no way to sever the settlement from the sale and that they were mutually dependent. Accordingly, the court affirmed the district court's dismissal of the appeal. View "New Industries, Inc. v. Byman" on Justia Law