May 19, 2009
Section 363 and other "quick" sales in bankruptcy
One of the clear lessons in the Lehman Bros bankruptcy is that quick sales are often bad sales. In th Lehman Bros bankruptcy, the bankruptcy trustee, the government, and some panicked investors pushed Leman to sell it broker dealer unit to Barclays within days of the filing. The result? Barclays stole the business. Now the government is pushing for a quick sale of Chrysler to Fiat within days of the initial filing of a Chapter 11 proceeding. Fiat will steal what it can. The primary benefit of Chapter 11, if there is one at all, is a status quo freezing of the company's business for an orderly restructuring, one that goes through a series of "plan" and votes on "plans" by impaired creditors. Once Chapter 11 is declared only, as noted in the Lionel case, "emergency" from "perishable assets" should force quick sales.
May 19, 2009 | Permalink
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Quick sales - especially stalking horse sales - are a sham!
The local good ole boys network of cases seizes opportunities to do the shark frenzy - and be dam all others who question why?
If Congress would do the job it designed - instead of catering to the whim of the day - we would see less of Tergsini, eToys and other debacles.
Half the NY Sup Ct docket of case 601805/2002 is Under Seal - things have gotten Out of Control!
Posted by: Laser Haas | May 19, 2009 10:28:20 AM