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Chapter 11

Podcast

Turning Intangible Assets into Tangible Value in Bankruptcy Sales

The stand-alone sale in bankruptcy of certain forms of intellectual property, namely trademarks, is now well-established. Since the dot-com bust, when website companies had few, if any, tangible assets to sell, restructuring professionals have grown accustomed to disposing of intangible assets in...

True-Sales: Quest Continues to Create a Doctrine to Guide Investors, Creditors, Courts

Ever since the securitization market began its exponential growth three decades ago, scholars and lawyers involved in structured finance have searched for a secular "holy grail"—a clear legal definition of a true-sale. 1 The quest is an important one. Despite its implosion in the aftermath of the...

A ‘Free and Clear’ Sale Order Is Only as Good as the Notice It Is Predicated Upon

Section 363(f) of the U.S. Bankruptcy Code enables a trustee or Chapter 11 debtor to sell its assets “free and clear of any interest in such property of an entity other than the estate,” provided it meets certain conditions. 11 U.S.C. Section 363(f). As courts have explained, “allowing sales of...

Fostering Competitive 363 Sales Is Not Always ‘Cause’ to Limit Right to Credit Bid

Asset sales pursuant to Section 363(b) of the U.S. Bankruptcy Code have become a common staple of complex Chapter 11 bankruptcies. Major companies such as The Rockport Co. LLC, Nine West Holdings Inc., and the Weinstein Company have all used 363 sales, as they are known in bankruptcy parlance, to...

Appellate Court Casts Doubt on Finality of Asset Sales in Canadian Insolvency Proceedings

There are many similarities between the sale of assets through a bankruptcy sale in the United States under Section 363 of the U.S. Bankruptcy Code and the sale of assets under Canada’s Companies’ Creditors Arrangement Act or Bankruptcy and Insolvency Act. Although the two countries’ legislation is...

Balancing Competing Interests in Insider Sales

The fact pattern may sound all too familiar to bankruptcy practitioners: Heightened Scrutiny Inc. is a multichannel computer and software family business founded in 1984 with current revenue of $65 million and 100 employees. The company has experienced sustained losses caused by increased...