Salyer
Salyer v. SK Foods, L.P.
Opinion
Lead Opinion
Karlton, J.
ORDER
Appellants seek to overturn the Bankruptcy Court’s order approving a compromise between the Trustee and the secured lenders. For the reasons set forth below, the Bankruptcy Court order appealed from will be affirmed.
1. BACKGROUND
On or about September 27, 2008, the Bank or Montreal and other secured lenders (collectively, “BMO”), loaned the Debtors $193 million. Excerpts of Record at 00000079 (hereinafter “EOR-79”) ¶0. 1 The loan was secured by all of the Debt- or’s assets, including their cash and cash proceeds (the “cash collateral”) (collectively, all these assets are the “prepetition collateral”). Id. On May 7, 2009, Debtors filed a petition in the Bankruptcy Court for protection under Chapter 11 (reorganization) of the Bankruptcy Code. EOR-78 ¶ A.
During the course of the bankruptcy, Debtors filed a motion for an order authorizing them to use BMO’s cash collateral so that (1) they could continue to operate the business, as well as (2) prepare for the “Section 363” ( 11 U.S.C. § 363 ) sale of the debtors’ assets. See EOR-2. 2 Because the appeal in this case is concerned with the nature of that sale, as proposed and as executed, the court sets out some of its details…