Asset sales under § 363 of the U.S. Bankruptcy Code  have become a critical component of the bankruptcy practitioner’s arsenal, and a preferred avenue of monetizing a debtor’s assets.
The ABI Asset Sale Committee awarded the inaugural Asset Sale of the Year Award to the asset sale in the Cobalt Energy case. Cobalt International Energy Inc.
All too often, attorneys misunderstand (or worse, disregard) the importance of local rules in numerous contexts —particularly in the area of asset sales. Rather than they be merely an afterthought, practitioners should be encouraged to make the local rules a jumping-off point when seeking to conduct a sale through § 363 of the Bankruptcy Code.
Asset sales under § 363 of the U.S. Bankruptcy Code have become a critical component of the bankruptcy practitioner’s arsenal, and a preferred avenue of monetizing a debtor’s assets.
Section 363 allows a debtor to sell its assets free and clear of interests in such property. If a creditor has a significant claim on a debtor’s assets, a § 363 sale may allow a debtor to sell its assets at a higher price than it could outside of bankruptcy. When debtors attempted a § 363 sale of their assets in In re K & D Industrial Services, the U.S.
Investors and those representing them go to great lengths to maximize the value of their deals in § 363 asset purchases.
Over the past several years, financially distressed companies have increasingly used bankruptcy as the preferred method to sell significant assets or entire businesses.
Adequate protection is one of the central protections provided to secured creditors by the Bankruptcy Code, and it is designed to protect against any diminution of the value of the secured creditor’s lien during the course of a debtor’s bankruptcy proceedings.
Similar to domestic bankruptcy cases, in chapter 15 cases the sale or disposition of property located in the U.S.
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