Whether an avoidance action can be sold and whether the sale will confer standing on the purchaser to prosecute the avoidance action

QUESTIONS PRESENTED In the decision below, the court of appeals—in a “res nova” issue for the Fifth Circuit—held that bankruptcy preference claims arising under 11 U.S.C. 547 may be sold by the bankruptcy estate. The court of appeals also determined the mere act of sale conferred standing, even if the purchaser does not qualify as a representative of the bankruptcy estate that could exercise avoidance powers like the debtor or bankruptcy trustee. The questions presented are: Whether an avoidance action can be sold and, if so, whether the sale will confer standing on the purchaser to prosecute the avoidance action even though (i) the purchaser does not qualify as a representative of the bankruptcy estate and (ii) the purchaser will exercise statutory avoidance powers for its benefit alone.