Opinion ID: 6082964
Heading Depth: 3
Heading Rank: 2

Heading: Bankruptcy Court Approves the Sale

Text: On June 12, 2014, about a month after Su resigned from his role with C Whale Corp., Su filed objections to the sale of the vessel, asserting that it could not be sold free and clear of his patents and related rights. Su asserted that C Whale Corp. and Pacific Orca acted in bad faith and conspired to obtain the C Whale at a lower price. At the sale hearing, however, Su withdrew his objections and consented to the sale with the understanding that he could assert any viable patent rights against the Lenders in subsequent proceedings. The bankruptcy court included explicit language indicating that “the Vessel [was] sold free and clear of all Alleged Su IP Claims.” The bankruptcy court approved the sale of the C Whale free and clear from all claims and interests, including the patent claims. After the sale was finalized, the bankruptcy court conducted a three- day evidentiary hearing and made specific findings that Pacific Orca was a 4 Case: 21-20147 Document: 00516165644 Page: 5 Date Filed: 01/13/2022 No. 21-20147 good-faith purchaser. The bankruptcy court noted that there was not even a “scintilla of evidence” suggesting collusion or bad faith as Su had asserted.