Section 363 Bankruptcy Sales: Credit Bids and Distressed Asset Transactions
Legal Strategies for Buyers and Lenders
Recording of a 90-minute CLE webinar with Q&A
This seminar will review the Section 363 bankruptcy sale process, the expanding use of credit bids by investors in distressed debt, the implications of the Clear Channel case on credit bids, and offer best practices for buyers and secured creditors involved in Section 363 sales.
Outline
- Asset sales generally
- Standards for approval under Section 363
- Sale procedures
- Use of professionals
- Due diligence
- Stalking horse bidders
- Auction process
- Sale order
- Credit bids generally
- Secured status
- Claim amount
- Bid amount
- Consent requirements in multi-lender financings
- Ownership structure and governance
- Additional financing
- Challenges to credit bidder’s standing
- Recharacterization of debt
- Good faith
- Equitable subordination
- Secured creditor issues
- Defending a loan to own strategy
- Credit bids after Clear Channel
- Asset sales as part of a plan of reorganization
Benefits
The panel will review these and other key questions:
- How can unsecured creditors mount an effective challenge to a secured lender's credit bid?
- How can a secured creditor defend its loan-to-own strategy against credit bid challenges?
- What is the impact of the Clear Channel Outdoor Inc. v. Knupfer decision on credit bids and buyers in bankruptcy sales?
Faculty
Thomas M. Horan
Member
Womble Carlyle
He focuses his practice on bankruptcy and creditors rights matters and is experienced in representing a broad range of... | Read More
He focuses his practice on bankruptcy and creditors rights matters and is experienced in representing a broad range of entities in complex commercial bankruptcy cases including debtors, committees, debtor-in-possession lenders, secured and unsecured creditors, trustees, landlords, lessors, insurers and parties purchasing assets. He regularly defends preference and fraudulent transfer actions.
CloseDerek Stoldt
Partner
Arnold & Porter
Mr. Stoldt is co-head of each of the firm's M&A and Life Sciences Transactions practices. He represents life... | Read More
Mr. Stoldt is co-head of each of the firm's M&A and Life Sciences Transactions practices. He represents life sciences, medical technology, and healthcare companies, as well as private equity funds and their portfolio companies in M&A, securities offerings, joint ventures, and other complex contractual transactions.
CloseMichael B. Solow
Partner
Kaye Scholer
He has over 20 years experience representing creditors, trustees and governmental agencies and other parties nationwide... | Read More
He has over 20 years experience representing creditors, trustees and governmental agencies and other parties nationwide in the bankruptcy and insolvency area. He is Co-Chair of the firm's Business Reorganization and Creditors' Rights Department and is a frequent lecturer on various topics relating to dealing with insolvent entities.
CloseOther Formats
— Anytime, AnywhereCLE On-Demand Audio
$297