Krys v. Farnum Place, LLC, No. 13-3000 (2d Cir. 2014)Annotate this Case
This appeal concerns the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS). The liquidator appealed the district court's affirmance of the bankruptcy court's order declining to conduct a section 363 review of a sale of the claims of Sentry in a Chapter 15 ancillary bankruptcy proceeding under the Securities Investor Protection Act (SIPA), 11 U.S.C. 1520. Sentry is a British Virgin Islands investment fund. The court vacated and remanded, concluding that the SIPA sale is subject to review under section 363 and comity is not warranted where the SIPA sale claim is a transfer of an interest of the debtor in property that is within the territorial jurisdiction of the United States.