M&A Stories Explore a recent M&A case where a buyer’s decision to back out of an asset purchase agreement led to a defamation claim by the seller. Learn about the legal proceedings and the court’s ruling in this bankruptcy-related merger…
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UNSECURED CREDITORS DISPUTE $36 MILLION SALE OF DISTRESSED SNACK MAKER BEFORE BANKRUPTCY
The seller’s unpaid creditors contend that other potential strategic partners were willing to pay between $42 million and $51 million for the seller. M&A Stories September 26, 2022 Introduction Selling a financially distressed business involves unique risks for both the…
Posted in problems with creditors of distressed business Tagged with: $36 million sale, bankruptcy, bankruptcy sale, Breach of fiduciary duty, Corporate governance, Dispute, Distressed snack maker, Financial difficulties, Lawsuit, M&A legal, Piercing the corporate veil, Private equity firm, Section 363 sale, successor liability, Unsecured creditors
Potential $100 Million Payroll Tax Liability for Buyers in M&A Asset Deal
Discover the legal implications of inheriting unpaid payroll taxes in M&A asset deals. Learn from a real case involving a buyer facing a $100 million liability. Insights on managing risks and mitigating potential tax liabilities. June 30, 2020 Introduction: When…
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…
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
Shareholders Claim Buyer Forced Distressed Business into Bankruptcy
Introduction Buying a distressed competitor may be a smart business move. However, the means used to buy the business can have legal consequences. The deal This case involved a distressed Texas based glove maker that was a formerly a public…
Posted in purchase agreement Tagged with: bankruptcy, creditor's good faith, distressed business, force business into bankruptcy
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