In re Brown Publishing Co.: Court Rejects Liquidated Damages Provision in Section 363 Bankruptcy Sale Procedures | Practical Law
The US Bankruptcy Court for the Eastern District of New York held in In re Brown Publishing Co. that a debtor may not retain, as liquidated damages, the good faith deposit of a successful bidder at a section 363 sale who ultimately fails to close the transaction, if the sale procedures provide that the debtor may seek additional actual damages, but no actual damages were incurred.