GM, Chrysler Highlight Growing 363 Sale Trend

Law360, New York (July 10, 2009, 12:00 AM EDT) -- The swift bankruptcies of U.S. auto giants Chrysler LLC and General Motors Corp. have shined a spotlight on the use of Section 363 sales as a restructuring mechanism. Such fast-track bankruptcy tactics are growing more common, bankruptcy experts say, potentially edging out traditional Chapter 11 reorganizations.

Management of the so-called “new GM” announced the completion of the Section 363 sale for the bulk of the company’s assets to a government-financed entity on Friday, allowing GM to exit bankruptcy court in just 40 days — more quickly...
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