Rise In Section 363 Sales Not Confined To Ch. 11

Law360, New York (November 11, 2009, 12:38 PM EST) -- Despite recent pronouncements that the worldwide recession has ended, an enduring overall financial malaise and credit crunch have caused a marked paradigm shift in U.S. bankruptcy cases.

Companies struggling to find affordable financing in Chapter 11 (in the form of debtor-in-possession financing, refinancing or exit financing), or seeking to minimize the administrative costs associated with full-fledged Chapter 11 cases, are increasingly opting for section 363 sales or prepackaged bankruptcies in an effort to fast-track the process.

The pervasiveness of sales of all or substantially all of...
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