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The debtors, Arch Hospitality, Inc. and its sole stockholder Rashmikant S. Patel, filed for Chapter 11 bankruptcy and sought court authority to sell a hotel asset free and clear of liens under 11 U.S.C. § 363(f). They argued that certain junior liens held by Buffalo Realty Corp. and the New York State Worker’s Compensation Board were wholly unsecured under 11 U.S.C. § 506 and that these creditors had impliedly consented to the sale by not responding to the motion. Chief U.S.B.J. Bucki denied the motion to sell, ruling that silence does not constitute implied consent as required by 11 U.S.C. § 363(f)(2). The court also denied as moot the motion to declare certain claims wholly unsecured, stating that such a determination would not circumvent the need for creditor consent.
In re Arch Hospitality, Inc. is a workers' compensation case decided in United States Bankruptcy Court, W.D. New York. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in United States Bankruptcy Court, W.D. New York.
Full Decision Text1 Pages
The debtors, Arch Hospitality, Inc. and its sole stockholder Rashmikant S. Patel, filed for Chapter 11 bankruptcy and sought court authority to sell a hotel asset free and clear of liens under 11 U.S.C. § 363(f). They argued that certain junior liens held by Buffalo Realty Corp. and the New York State Worker’s Compensation Board were wholly unsecured under 11 U.S.C. § 506 and that these creditors had impliedly consented to the sale by not responding to the motion. Chief U.S.B.J. Bucki denied the motion to sell, ruling that silence does not constitute implied consent as required by 11 U.S.C. § 363(f)(2). The court also denied as moot the motion to declare certain claims wholly unsecured, stating that such a determination would not circumvent the need for creditor consent.
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