Abstract

https://ssrn.com/abstract=2809764
 


 



Bankruptcy Sales


Melissa B. Jacoby


University of North Carolina (UNC) at Chapel Hill - School of Law

Edward J. Janger


Brooklyn Law School

July 14, 2016

Handbook on Corporate Bankruptcy, B. Adler ed., E. Elgar Publishing, 2017 Forthcoming
UNC Legal Studies Research Paper No. 2809764
Brooklyn Law School, Legal Studies Paper No. 463

Abstract:     
Bankruptcy courts have become fora for the sale of entire companies as going concerns, as well as for the liquidation of assets piecemeal. This book chapter teases out the advantages and disadvantages of conducting such sales under federal bankruptcy law as compared to state law. We first describe the forms that bankruptcy sales can take, and the contexts in which they occur. Next, we explore the concept of “bankruptcy-created value,” identifying the ways in which the federal bankruptcy process can create value over and above what can be realized through compulsory state processes. We then identify several procedural and governance-based concerns about all-asset sales, and discuss how our recent proposal, the Ice Cube Bond, would address them. Finally, we explore the related issues of credit bidding and the permissible scope of sale orders that declare assets to be “free and clear” of various kinds of claims and property interests.

Number of Pages in PDF File: 19

Keywords: Bankruptcy, Corporate Reorganization, 363 Sales, General Motors, Chrysler, Sales Free and Clear, Secured Transactions, Article 9, Ice Cube Bond

JEL Classification: A33, D21, D22, D81


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Date posted: July 19, 2016 ; Last revised: August 16, 2016

Suggested Citation

Jacoby, Melissa B. and Janger, Edward J., Bankruptcy Sales (July 14, 2016). Handbook on Corporate Bankruptcy, B. Adler ed., E. Elgar Publishing, 2017 Forthcoming; UNC Legal Studies Research Paper No. 2809764; Brooklyn Law School, Legal Studies Paper No. 463. Available at SSRN: https://ssrn.com/abstract=2809764

Contact Information

Melissa B. Jacoby (Contact Author)
University of North Carolina (UNC) at Chapel Hill - School of Law ( email )
Van Hecke-Wettach Hall, 160 Ridge Road
CB #3380
Chapel Hill, NC 27599-3380
United States

Edward J. Janger
Brooklyn Law School ( email )
250 Joralemon Street
Brooklyn, NY 11201
United States
718-780-7995 (Phone)
718-780-0376 (Fax)

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