"The modern trend in chapter 11 is to liquidate the business as a going concern through a sale under section 363. This is particularly true in cases where the primary secured lender’s debt exceeds the value of the business. In such cases, while losses will be funded out of cash collateral, the lender will reap the benefit of selling its collateral quickly as a going concern rather than in a fire sale courthouse steps liquidation. Other advantages include the ability to sell free and clear of liens and having an order approving the various terms and conditions that are needed in order to obtain the highest possible price for the business."
Committees