The buyer was not responsible for the production agreement’s pre-closing liabilities because it was a non-executory contract. M&A Stories August 25, 2021 Introduction: When a buyer purchases a distressed business out of bankruptcy, there are specific rules that apply, especially…
Blog Archives
Stalking Horse’s Bid Fails in M&A Deal Due to Dispute Over PPP Loan Value
Explore a recent M&A case where a stalking horse bid faced challenges due to disagreements over the value of a PPP loan. Gain insights into the legal intricacies and implications of this unique situation. M&A Stories November 17, 2020 Introduction:…
Bankruptcy Court Approval for Sale of Business with Insider Connections
Learn about the bankruptcy court’s role in approving the sale of a financially troubled business with insider connections under Section 363 of the Bankruptcy Code. Explore a case study involving an offshore mussel farm acquisition, creditor objections, and the court’s…
Posted in buyer connected to seller insiders, distressed business acquisitions, Section 363 sale Tagged with: Bankruptcy Code, Bankruptcy court, Bankruptcy Court Approval, Case Study, creditor objection, distressed business, In Re Catalina Sea Ranch, insider connections, LLC, offshore mussel farm, sale of assets, Section 363, successor liability
Buyer Bound by Bankruptcy Court’s Sale Order Despite Non-Signing of Purchase Agreement
Explore a case involving a Section 363 bankruptcy sale where a buyer’s liability was upheld by the court despite not signing the purchase agreement. Gain insights into the legal implications of court-approved sales orders in distressed business acquisitions. March 11,…
Posted in bankruptcy sale, distressed business acquisitions, sales order, Section 363 sale Tagged with: Bankruptcy court, bankruptcy trustee, Buyer's liability, court-approved sales order, Distressed Business Acquisition, lease modification, legal implications, M&A legal blog, Purchase agreement, Redskins Grille case, Section 363 sale, Virginia federal district court
Insolvent Nonprofit Hospital Sells Assets in Bankruptcy: California Attorney General’s $305 Million Conditions Overruled
Explore the legal details of a California nonprofit hospital’s asset sale in bankruptcy, where the Attorney General’s conditions were overruled, impacting a $610 million deal. Learn about the implications and case reference. November 1, 2019 Introduction: Selling assets of a…
Buyer’s Section 363 Purchase of Bankrupt Hospital Assets Clears Medi-Cal Liabilities
Learn about a recent M&A legal case where a buyer successfully purchased assets from a bankrupt hospital without taking on its liabilities. Explore the implications of Bankruptcy Code Section 363 and its impact on Medi-Cal agreements. Gain insights into the…
Posted in bankruptcy sale, distressed business acquisitions, executory contracts, Medi-Cal provider agreements, Section 363 sale Tagged with: Asset acquisition, Bankrupt hospital assets, Bankruptcy Code Section 363, Bankruptcy proceedings, Buyer's Acquisition, California hospitals, Clearing Medi-Cal liabilities, Executory contracts, In Re Verity Health System, Legal battle outcome, M&A legal case
Understanding Product Liability in M&A: A Recent Legal Case
Explore the complexities of product liability in M&A through a real-life legal case involving the acquisition of National Car Rental. Gain insights into liability assumptions and legal outcomes. August 27, 2019 M&A Stories Introduction: When acquiring a business out of…
Posted in bankruptcy sale, distressed business acquisitions, product line exception, sale of product line, Section 363 sale, successor liability Tagged with: 2003 acquisition, Alad case, asset purchase agreement, bankruptcy, Bankruptcy Code, Buyer's responsibility, California, car rental business, Hernandez v. Enterprise Rent-A-Car Company, Legal Case, legal outcomes, liability claims, M&A, National Car Rental, paraplegic lawsuit, product liability, successor liability
Bankruptcy Court Approves Sale of Business, Clears Pension Claim
Explore the recent M&A development where a pension plan’s attempt to block a company’s business sale in bankruptcy failed. Discover how section 363(f)(3) of the Bankruptcy Code played a pivotal role in allowing the sale to proceed without the burden…
Posted in asset purchase agreement, bankruptcy sale, distressed business acquisitions, federal multiemployer pension plan withdrawal liability, Section 363 sale, successor liability Tagged with: 363(f) sale, alter ego, bankruptcy, Bankruptcy Code, Chapter 11, Collective Agreement, contingent liability, Court ruling, E.D. Michigan, Environmental Services, Industrial Services, K & D Industrial Services Holding Co., legal battle, M&A, multiemployer pension plan withdrawal liability, Pension Claim, Pension Fund Liability, successor liability, transferee liability
Investment banker succeeds in getting its transaction fee approved in chapter 11 asset sale in face of trustee/creditor push back
Investment Banker provides a broad range of services including investment banking services to financially distressed companies. In 2017, Seller, a celebrity chef owned small restaurant chain, retained Investment Banker as its investment banker to assist with a recapitalization or a…
Buyer’s purchase price may triple post-closing because of underfunded union pension plan
Seller was a wire-forming company. A collective bargaining agreement with the union representing its workforce obligated Seller to contribute to a multiemployer pension plan on behalf of the employees. In September 2013, after Seller determined that it could not stay…
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