Attacks Continue on Lenders’ Right to Credit Bid in 363 sales

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Attacks Continue on Lenders’ Right to Credit Bid in 363 sales

May 13, 2010: by Bobby Guy, Jennifer O’Guinn, (TMA International Headquarters)

Reorganization is a tough business when capital is inaccessible. It’s no secret that true Chapter 11 reorganizations are few and far between; the Chapter 11 bankruptcy process is now used frequently as a sales mechanism through its very powerful Section 363 sale process. The market demands sales, and to attract the highest prices, it demands the certainty of a Section 363 sale. Indeed, from the perspective of the market, Chapter 11 may be the most efficient liquidation mechanism in the world.[1] Read More