By Steven Wilamowsky and Laura Appleby (October 11, 2018, 1:28 PM EDT) -- It is common for buyers of assets in bankruptcy cases to proceed to closing even if the court's approval of the sale is under appeal. Their willingness to do so comes in large measure thanks to Section 363(m) of the Bankruptcy Code, which protects most sales from being unwound even in the face of an otherwise meritorious appeal. Yet, on Sept. 24, 2018, the U.S. District Court for the Southern District of New York issued a decision[1] in which the court considered the merits of an appeal of a bankruptcy court order approving the transfer for consideration of a lawsuit to the defendants in that lawsuit (thereby extinguishing it) by a Chapter 7 trustee, despite the bankruptcy court's finding that the transferee was a "purchaser in good faith" of the action within the meaning of Section 363(m) of the Bankruptcy Code.[2]...