The Section 363 Sale of the Debtors Business

• Jurisdiction: United States

The Section 363 Sale of the Debtors Business

In recent years, there has been an increasing number of cases where the debtor seeks to dispose of all or substantially all of its assets in one or more transactions known as section 363 sales. Courts tend to be cautious in approving such sales because, once accomplished, they go a long way toward determining how creditors will be treated in the chapter 11 case without the benefit of the protections afforded by the plan-confirmation process. Among the most...