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Insolvent Nonprofit Hospital’s 363(f) Sale Was Free of a $305 Million Cost Imposed by CA AG

Introduction The sale of the assets of a nonprofit hospital in California requires the permission of the state’s attorney general. The deal This deal involves the Bankruptcy Code Section 363(f) sale of four California nonprofit hospitals in bankruptcy for $610

Posted in bankruptcy sale, distressed business acquisitions, Section 363 sale, state approval of nonprofit hospital Tagged with: , ,

Buyer’s Section 363 Purchase of Bankrupt Hospital Assets Is Free of Medi-Cal Liabilities

Introduction A principal reason for buying the assets of a distressed business out bankruptcy is to purchase the assets free and clear of liabilities under Bankruptcy Code Section 363. The deal In this case the buyer agreed to purchase the

Posted in bankruptcy sale, distressed business acquisitions, executory contracts, Medi-Cal provider agreements, Section 363 sale Tagged with:

CA Court of Appeals Dissent Invites CA High Court to Clarify 363(f) Asset Sales with Alad Product Liability Claims

Introduction A buyer of a manufacturer, distributor or retailer of products out of bankruptcy expects that it can acquire the business free and clear of product liability claims under section 363(f) of the bankruptcy code. The deal This case involved

Posted in bankruptcy sale, distressed business acquisitions, product line exception, sale of product line, Section 363 sale, successor liability Tagged with: , , , ,

Bankruptcy Court Permits 363(f) Sale of Business Free of Pension Claim

Introduction A pension plan unsuccessfully tried to stop a company from selling a business to a buyer in a 363(f) (3) sale free and clear of the seller’s pension fund liability. The deal The seller was engaged in environmental and

Posted in asset purchase agreement, bankruptcy sale, distressed business acquisitions, federal multiemployer pension plan withdrawal liability, Section 363 sale, successor liability Tagged with: , , , , ,

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

Posted in approval of investment banking fee, bankruptcy sale, distressed business acquisitions, investment banker/business broker

Buyer does not acquire patent license agreement from chapter 7 bankruptcy trustee

This case involved the purchase of a patent license agreement out of bankruptcy of several related companies. For purposes of illustration the facts have been modified by describing the sale out of bankruptcy of a patent license agreement from just

Posted in bankruptcy sale, distressed business acquisitions, executory contracts

IT vendor can’t force buyer to assume vendor’s contract with bankrupt business just because vendor provided transitional services to buyer under bankrupt’s vendor contract

Seller was a membership buying service headquartered in Merrillville, Indiana (a 40-minute southeast drive from Chicago). Seller was owned by 2 private equity firms, based in Washington, D.C. and Miami, Florida. Members of Seller paid a fee, which entitled them

Posted in bankruptcy sale, buyer assumption of seller's contracts, distressed business acquisitions, transitory services contracts

Buyer of large nursery business in bankruptcy is winning right to assume 3 crucial real estate leases

Seller, based in Temecula, California, owned and operated one of the largest greenhouse operations in the country. Seller filed for chapter 11 bankruptcy protection on May 29, 2018. As part of the bankruptcy, the bankruptcy court approved Seller’s sale of

Posted in bankruptcy sale, distressed business acquisitions, leases

Court considers whether bankruptcy sale of Chrysler shields buyer from pre-closing claim for a defective airbag

This case involves the purchase by Buyer of substantially all of the assets of the distressed auto business of Seller, (Chrysler). The 2009 sale occurred in Seller’s chapter 11 bankruptcy reorganization in which Seller sold most of its assets to

Posted in actual notice to known creditors, bankruptcy sale, distressed business acquisitions

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