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 LJN Newsletters 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
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

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.

Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability Image

This article explores legal developments over the past year that may impact compliance officer personal liability.