Post-Fisker Credit-Bidding Concerns Are Unwarranted
March 13, 2014, 1:03 PM EDT
Law360, New York (March 13, 2014, 1:03 PM EDT) -- Section 363 of the Bankruptcy Code governs the sale of a debtor’s assets outside of the ordinary course of business. A debtor may use Section 363 to sell all, or substantially all, of its assets free and clear of any liens and encumbrances, with the proceeds of such sale to inure to the benefit of the creditors of the debtor’s bankruptcy estate.
Section 363 also permits a secured creditor to submit a “credit bid” for the purchase of a debtor’s assets through a bankruptcy sale. Specifically,...
Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.