A Guide To Selling Special Assets During Bankruptcy
November 20, 2013, 3:14 PM EST
Law360, New York (November 20, 2013, 3:14 PM EST) -- A debtor’s valuable rights under an existing lease or contract is an “asset” that can be sold in a 363 sale. In practice, the “sale” of a lease or contract is more properly viewed as an “assumption and assignment” under Section 365, but it is also a use, sale or lease of property governed by Section 363(b), so both 363 and 365 are applicable.
Specifically, Section 365 of the Bankruptcy Code allows a debtor or trustee to assume and then assign an executory contract or unexpired...