Bidder Beware: Collusive Bidding In Bankruptcy Sales
June 20, 2011, 12:22 PM EDT
Law360, New York (June 20, 2011, 12:22 PM EDT) -- For the past several years, financially distressed companies have increasingly turned to bankruptcy as a desirable forum to sell off significant fixed assets, stockpiled inventory, and even going-concern business divisions in order to appease creditors. As bankruptcy has gradually shifted focus from true reorganization efforts to essentially organized liquidations, asset sales conducted pursuant to section 363 of the Bankruptcy Code have taken center stage in many cases.
The wide variety of assets sold in 363 sales days has introduced greater complexity to the process that require...