Asset Sales

Liability Management Transactions: The Beginning of the End?

While corporate restructuring is an option financially distressed companies often proactively explore to reduce their debt burden, another alternative that has recently gained some notoriety is a liability management transaction (LMT). Put simply, an LMT is a seemingly clever maneuver to modify capital structures by shifting collateral around to benefit one set of creditors at the expense of others. This assists the company with fresh capital, suspended/waived debt service obligations, extended maturities, or some combination thereof.

Tips for Selling a Distressed Business

When a business is in financial trouble, sometimes the best way out is to sell the business as some form of a going concern. Such a sale usually yields more than a piecemeal liquidation of the assets. Losses to creditors are minimized, as are losses to guarantors of debt.

Usually, rather than undertaking a distressed sale, it is better to turn a business around so that it is more profitable and will either sell more or generate cash to pay creditors. However, selling is necessary when that option is not viable, particularly in the eyes of secured lenders.

Beware the Backdoor Release: Big Lots’ Attempt to Dispose of Estate Claims Via § 363 Reminds Creditors to Scrutinize Asset-Purchase Agreements

In late 2024, struggling retailer and chapter 11 debtor Big Lots Inc. and its debtor affiliates (together, “Big Lots” or the “debtors”) attempted a § 363 sale of substantially all of their assets to an entity affiliated with Nexus Capital Management LP.

Going to a Bankruptcy Auction Naked: Stalking-Horse Strategies to Maximize Auction Proceeds

In the realm of bankruptcy auctions, the goal is to maximize proceeds for stakeholders through a process that is transparent and beyond reproach. This article discusses strategies for running a pre-auction process to choose a stalking horse, ensuring that no stone is left unturned in the pursuit of maximizing value.

In Stalking Horse Sales, Courts Have Flexibility to Reopen Bidding After the Deadline

The debtor’s duty to land the best price for an asset can overcome the winning bidder’s expectation that sale procedures will be enforced rigorously.

Bio-Hazard! The Sale of Biogenetic Data in a Bankruptcy Proceeding

April 2025

Remnant Asset Sales Achieve Full and Final Estate Administration at Maximum Value

For nearly 20 years, insolvency estate professionals have utilized “remnant asset” sales as a prudent and efficient means to fully and finally administer estate assets, and thereby fulfill their fiduciary duty to maximize estate value for the benefit of creditors.[1] This simple practice, which has become commonplace in the restructuring industry, applies to all wind-down contexts regardless of approach, including liquidations under chapters 7 and 11, and subchapter V of the Bankruptcy Code, assignments for the benefit of creditors, state and feder

A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal

The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.

In ‘363’ Sales, Three Courts Say Purdue Doesn’t Bar Injunctions Protecting Buyers

For a sale ‘free and clear,’ nondebtors can be enjoined from suing.

Strategic Use of Chapter 15 and Its Intersection with § 363: Can a U.S. Court Sell a Foreign Debtor’s Assets Free and Clear?