In re ICL Holding Co., Inc: Third Circuit Allows Purchaser to Gift Non-estate Property to Junior Creditors to Resolve Section 363 Sale Objections | Practical Law
In In re ICL Holding Co., Inc., the US Court of Appeals for the Third Circuit held that, in connection with a secured lender group’s purchase of all of a debtor's assets at a section 363 sale, escrows it created to pay wind-down expenses and the debtor’s and creditors’ committee’s professional fees and settlement sums it paid to unsecured creditors, were not property of the estate and therefore were not required to be distributed in accordance with the Bankruptcy Code’s priority scheme.