Section 363 Bankruptcy Sales

Law360, New York (February 18, 2009, 12:00 AM EST) -- The model upon which Chapter 11 of the Bankruptcy Code is based envisions a restructuring of corporate debts, where the company remains in business after it emerges from bankruptcy protection.

Increasingly, however, companies seeking Chapter 11 relief ultimately end up selling substantially all of their assets. As a result, sales under Section 363 of the Bankruptcy Code have become more important in the bankruptcy world.

In many cases, a Chapter 11 is filed with the hope of obtaining new investors or financing that will permit a...
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