Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistLJN NewslettersNewsSections

Asset Sales in Bankruptcy

By Douglas P. Bartner and Jordan A. Costa
August 21, 2010

For distressed asset sales, the Great Recession has been something of a perfect storm. The global economic near-catastrophe affected virtually every industry in both the national and global economies, and presented financial market players, corporate CEOs, regulators and government leaders with the horrifying prospect of systemic collapse of the global financial system.

Exacerbating the extreme challenges faced by distressed companies and debtors once in bankruptcy has been an unparalleled contraction in global credit markets. Indeed, at the very same time that bankruptcy filings dramatically increased, the availability of DIP financing dramatically decreased. This has resulted, in part, in an increasing number of asset sales to fund corporate wind downs and reorganizations ' including in the high profile bankruptcies of Lehman Brothers, Inc., Chrysler LLC and General Motors Corp. In addition, many debtors able to obtain DIP financing have been required to agree to asset sales on highly compressed timelines as a condition to borrowing.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.