Conducting an asset sale through a bankruptcy auction — a Section 363 sale — is an effective and common M&A tool for a distressed company.
In anticipation of a 363 sale, a Chapter 11 debtor typically tries before its...more
2/12/2025
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Competitive Bidding ,
Creditors ,
Debt Restructuring ,
Debtors ,
Distressed Debt ,
Reorganizations ,
Sale of Assets ,
Section 363
When a company enters bankruptcy, its assets are often sold to the highest or best bid. Secured lenders — those who have perfected liens on the company's assets — have a unique advantage under Section 363(k) of the Bankruptcy...more
1/15/2025
/ Collateral ,
Commercial Bankruptcy ,
Credit Bids ,
Creditors ,
Debt ,
Debtors ,
Lenders ,
Liens ,
Loans ,
Perfected Security Interest ,
Section 363 ,
Secured Debt
In the high-stakes world of bankruptcy asset acquisitions, Bankruptcy Code Section 363 provides a powerful mechanism for purchasing assets “free and clear” of most claims, liens, and encumbrances. Success in these...more
A bankruptcy sale is an opportunity to potentially acquire assets at distressed pricing. A bankruptcy sale also presents prospective bidders with a level playing field to conduct due diligence, submit a bid, and compete...more
5/22/2024
/ 363 Sales ,
Acquisitions ,
Assignments ,
Assumption of the Risk ,
Auction ,
Bankruptcy Code ,
Bids ,
Business Assets ,
Commercial Bankruptcy ,
Competitive Bidding ,
Debtors ,
Executory Contracts ,
Regulatory Requirements ,
Sale of Assets ,
Section 363
Top 10 Questions About Subchapter V Reorganization -
Reorganization under Chapter 11 of the Bankruptcy Code offers powers and benefits that are simply not available in out-of-court restructurings. Chapter 11...more
4/28/2021
/ Bankruptcy Code ,
Chapter 11 ,
Commercial Bankruptcy ,
Coronavirus/COVID-19 ,
Creditors ,
Debt Restructuring ,
Debtors ,
Early Stage Companies ,
Emerging Growth Companies ,
Relief Measures ,
Reorganizations ,
Small Business ,
Small Business Reorganization Act of 2019 (SBRA) ,
Startups ,
Trustees