Hidden Opportunities Right Under Your Nose
November 19, 2018
The distressed market has always presented fertile ground for business parties – investors, business owners, and start-ups – to explore opportunities that, though they may come with some uncertainty, offer “value” that potentially outweighs the issues present. Sometimes these opportunities come through as shut-downs, liquidations, reorganizations, or otherwise (at times, resulting in auctions) in which owners seek to divest themselves of certain assets. One popular vehicle often seen is in conjunction with a Chapter 11 bankruptcy filing; specifically, a sale pursuant to Section 363 of the United States Bankruptcy Code. The key to a Section 363 sale, and the overwhelming reason such sales are so enticing to buyers, is the undeniable stripping of all existing interests in the assets sold, resulting in a purchase that is truly “free and clear.”…