Both Chrysler and GM used asset sales under section 363 of the Bankruptcy Code as a way to avoid the more cumbersome chapter 11 plan process. The strategic use of section 363 asset sales in reorganization cases is becoming so common that some courts and commentators predict that the asset-sale route to a chapter 11 plan confirmation may soon supplant the traditional chapter 11 plan process. While some have decried section 363 sales as contrary to the voting system and other procedural safeguards inherent in a standard chapter 11 confirmation, this Essay argues that the section 363 asset-sale development is a natural consequence of the Bankruptcy Code being weighed down by a “springing” (or bankruptcy-only) priority of retiree medical benefits. Not only are springing prioriti...
In today's economic environment, quick sales of business under Section 363 of the Bankruptcy Code in Chapter 11 are replacing the traditional, lengthy bankruptcy cases that for years were the standard for Chapter 11. Section 363(b) of the Bankruptcy Code authorizes a Chapter 11 debtor to use, sell or lease property outside the ordinary course of business only after a notice and a hearing before the Bankruptcy Court. When facing the possibility of a 363 sale, secured lenders should be mindful of any anticipated administrative costs, "cure costs", costs to obtain consents to assignments, and the continuing "melt" of the debtor's business. If these issues are not addressed until the 363 sale process is already underway, the secured lenders may find themselves without any leverage to negoti...
ver las páginas en versión mobile | web
ver las páginas en versión mobile | web
© Copyright 2012, vLex. All Rights Reserved.
Contents in vLex United States
Explore vLex
For Professionals
For Partners
Company
Other interesting searches:
Central Coast Bancorp | Tyler Redenbach | values in life | remorse | tying | oxicar | In matriculación | Estonie du Nord | comparendos | infracción definición
