Strategies for Buyers and Secured Lenders
in an Uncertain Legal Environment
***Ninth Circuit BAP Ruling Raises Doubt About Senior Secured
Creditors' Rights in Section 363 Sale***
CD of Teleconference with Q&A
Click here for program outline
Conducted on Thursday, October 23, 2008
Now available on CD
Sponsored by the Legal Publishing Group of Strafford Publications
Section 363 bankruptcy sales are increasingly common, allowing for the expeditious sale of a distressed company's assets "free and clear" of existing junior liens through a credit bid process. However, various courts’ treatment of secured creditors in the sales proceeding has differed greatly.
On July 30, the U.S. Bankruptcy Appellate Panel for the 9th Circuit muddied the water with its ruling in Clear Channel Outdoor Inc. v. Knupfer. The court held a senior creditor's bid did not qualify as a "free and clear" sale that extinguished existing junior creditors' liens on the property.
The Clear Channel ruling could make it more difficult to extinguish junior liens through a section 363 sale, thereby decreasing buyers' interest in purchasing assets at section 363 sales.
Listen as our panel of bankruptcy attorneys reviews the Clear Channel opinion and its implications for buyers and secured creditors involved in section 363 sales.
The panel included:
Thomas L. Kent, Partner, Paul Hastings Janofsky & Walker, New York. He represents creditors, including official and ad-hoc creditors’ committees, in bankruptcy proceedings and out-of-court settlements. He is a frequent speaker on bankruptcy and commercial law matters.
Frank A. Monaco, Jr., Womble Carlyle Sandridge & Rice, Wilmington, Del. He represents debtors, creditor committees, individual creditors and other interest holders in bankruptcy litigation and transactions. He is currently a Chapter 11 Trustee and a liquidating trustee. He is a frequent speaker at bankruptcy seminars and conferences.
Seth E. Lemler, Operating Principal, Versa Capital Management, Inc., Philadelphia. He originates, structures and manages private equity investments in special situations, such as stressed and distressed companies. He has over 20 years of experience in the turnaround and restructuring markets.
The panel reviewed these and other key questions:
- How does the Clear Channel Outdoor, Inc. v. Knupfer decision impact how secured creditors should proceed in a bankruptcy case?
- When should a buyer of assets under section 363 close on the sale?
- What are some best practices for secured creditors involved in section 363 sales?
TELECONFERENCE CD
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