Asset sales of substantially all of the assets of a corporate debtor early in a chapter 11 case have become routine.
Asset Sales Committee
Committees
Asset sales of substantially all of the assets of a corporate debtor early in a chapter 11 case have become routine. Orders approving motions to approve streamlined procedures for sales of de minimis assets in large chapter 11 cases have also become routine. In re Borders Group, Inc.
Picture the typical bankruptcy case. The decision is made to sell the assets, and debtor’s counsel drafts bidding procedures to create a framework to generate the highest and best bid for a particular estate asset. The committee and the secured creditors make comments and the court approves the bidding procedures.
On June 28, 2011, the U.S. Court of Appeals for the Seventh Circuit affirmed the U.S.
![Photo of William Snyder [1]](https://abi-org-corp.s3.amazonaws.com/committee/Authors/ABICommitteeLogo_42.png)
Editor’s Note: For more information about this case, please read two features by Jonathan S. Covin and David G. Gamble that were published in the July/August and October 2010 issues, respectively.
In In re Douglas Ray, [1] the Ninth Circuit recently held that a bankruptcy court lacks jurisdiction to reopen a closed case to preclude a collateral attack on its prior, final sale order.
Background
It's Never Too Late to Deal with Unscheduled Assets by: Krystiana L. Gembressi
Some cases really should not be all that difficult. However, when judges choose to divorce statutory text completely from any reference to underlying legislative intent and long standing commercial practice, inexplicable results follow.
Philadelphia Newspapers LLC and its related debtor entities, as debtors and debtors-in-possession (the debtors), proposed a plan of reorganization that included, among other things, the sale of substantially all of their assets by public auction pursuant to §363 of chapter 11 of title 11 of the U.S. Bankruptcy Code.
In these unprecedented times, fast-track sales of troubled companies are prevalent across a wide range of industry sectors. With traditional M&A, there are a variety of options available to companies seeking to restructure their businesses, but there are no guarantees that a transaction will take place.
Ms. Jane Kim
Co-Chair
Keller Benvenutti Kim LLP
San Francisco, CA
(415) 364-6793
Co-Chair
Keller Benvenutti Kim LLP
San Francisco, CA
(415) 364-6793
Ms. Randye B. Soref
Co-Chair
Polsinelli
Los Angeles, CA
(310) 556-1801
Co-Chair
Polsinelli
Los Angeles, CA
(310) 556-1801
Mr. Thomas S. Kessler
Communications Manager
Cleary Gottlieb Steen & Hamilton LLP
New York, NY
(212) 225-2000
Communications Manager
Cleary Gottlieb Steen & Hamilton LLP
New York, NY
(212) 225-2000
Mr. Christopher M. Candon
Education Director
Sheehan, Phinney, Bass + Green
Manchester, NH
(603) 627-8168
Education Director
Sheehan, Phinney, Bass + Green
Manchester, NH
(603) 627-8168
Mr. Steven L. Victor
Membership Relations Director
Development Specialists, Inc.
Chicago, IL
(312) 263-4141
Membership Relations Director
Development Specialists, Inc.
Chicago, IL
(312) 263-4141
Mr. William Hao
Newsletter Editor
Alston & Bird LLP
New York, NY
(212) 210-9417
Newsletter Editor
Alston & Bird LLP
New York, NY
(212) 210-9417
Mrs. Hayley G. Harrison
Special Projects Leader
Wernick Law PLLC
Miami, FL
(561) 961-0922
Special Projects Leader
Wernick Law PLLC
Miami, FL
(561) 961-0922