What is a 363 sale process?
What is a 363 sale process?
A 363 Sale refers to the sale of an organization’s assets. The bankruptcy court grants the debtor-in-possession or trustee the power to sell the organization’s assets even when there is an objection from junior creditors. It is also referred to as subordinated debt., after a court hearing of their petition.
What is a section 363?
A section 363 (named after the section of the US Bankruptcy Code that authorizes a debtor to sell its assets) is a court-sanctioned sale process for a company in a US bankruptcy case.
Is administration the same as chapter 11?
In contrast in the US, Chapter 11 of the Bankruptcy Code deals with restructuring. In many ways it is similar to administration under Part II of the Insolvency Act 1986, except that in most Chapter 11 cases the debtor remains in possession.
What is credit bidding?
Also known as credit bidding. The right of a secured creditor under the Bankruptcy Code to use its secured claim against a debtor as currency in an auction of its collateral in a debtor’s section 363 sale (§ 363(k), Bankruptcy Code).
What is a 9019 motion?
9019 Motion means a motion seeking approval of this Settlement Agreement and the PBGC Settlement and entry of the Approval Order pursuant to Bankruptcy Rule 9019 in a form reasonably satisfactory to the Rank Parties, the Majority Noteholders and the Committee.
What is the UK equivalent of Chapter 11?
In the UK, filing for bankruptcy is called administration, and similar to the US, this law requires approval by a third body for business decisions. In the UK, the third body is called an administrator.
What is prepackaged Chapter 11?
A prepackaged bankruptcy is a strategy to emerge from bankruptcy by negotiating with creditors in advance of Chapter 11 proceedings. The goal of such a plan—which must be approved by shareholders and a court—is to speed up the overall time a company is under bankruptcy protection.
What is an Article 8 Security?
Since 1994, Article 8 of the UCC considers that the majority of the dematerialized securities that are registered on an account with intermediaries are only reflections of their respective initial issue registered by the two American central securities depositories, respectively the Depository Trust Company (DTC) for …
Does Section 363 of the Bankruptcy Code apply to Chapter 11 plans?
The court ultimately ruled that section 363 of the Bankruptcy Code does not apply to sales in a chapter 11 plan and that the debtors proposed their plan in good faith.
What happens to creditors after a Chapter 11 bankruptcy sale?
For sales under Chapter 11, the existing claims, liens, and interests dictate the distribution of sale proceeds to creditors but do NOT remain attached to the post-sale asset (s). Under Section 363 of the Bankruptcy Code, buyers can acquire the assets in the ordinary course of business of the debtor “free and clear of liens or other claims”.
What is a Chapter 11 plan for the sale of property?
Section 1123 (a) (5) of the Bankruptcy Code states that a chapter 11 plan shall provide for adequate means of its implementation, such as the “sale of all or any part of the property of the estate, either subject to or free of any lien ” (emphasis added).
What happens to successor liability in a bankruptcy sale?
Thus, in a bankruptcy sale involving an interest in a qualifying “consumer credit transaction” or a “consumer credit contract,” the sale does not “cleanse” the assets of certain successor liability claims.
