There are two ways to affect a sale of a company’s assets in bankruptcy: via § 363 of the Bankruptcy Code, and via the debtor’s chapter 11 plan of reorganization. This session discusses the pros and cons, general requirements for and timelines of each met
May Israel Fink, a partner in Arlen Porter's bankruptcy and restructuring group, discussed the mechanics and advantages of asset sales in Chapter 11 cases. She explained that asset sales can help distressed companies raise capital, divest less profitable assets, or preserve business operations. Fink highlighted the benefits of 363 sales, including speed and the ability to sell assets free and clear of liens, but noted potential drawbacks like litigation risks and the need for creditor approval. She also covered the process of a 363 sale, including marketing, bidding procedures, and the role of a stalking horse. Fink emphasized that while a 363 sale can be efficient, it does not necessarily resolve the bankruptcy case, which may require further restructuring through a Chapter 11 plan.
28 minutes 07 seconds
Maja Zerjal Fink is a partner with Clifford Chance US LLP in New York, where her practice focuses on all aspects of corporate reorganizations, distressed situations and bankruptcy and insolvency proceedings in the U.S. and across the globe. Her experience includes advising private-equity sponsors, debtors, foreign debtors and representatives, lenders, official creditor committees, creditors and equityholders in bankruptcy proceedings and in-court and out-of-court restructurings. Ms. Zerjal Fink was honored as an ABI 40 Under 40 in 2020 and has been recognized by Law360 (2020), Super Lawyers (2020) and The Legal 500 (2019) as a Rising Star, and she was inducted in the International Insolvency Institute’s NextGen Program in 2020. She has guest-lectured at Harvard Law School, the University of Michigan Law School and the University of Pennsylvania Carey Law School, and she writes extensively on restructuring topics, including in Bloomberg Law and Debtwire. She also is a member of the Editorial Board of International Corporate Rescue, a corporate restructuring and insolvency journal, and serves as the co-secretary and board member of the International Insolvency Institute’s Model Laws@Work Thought Leadership Project. Ms. Zerjal Fink received her B.A. from the University of Ljubljana in Slovenia, where she was first in class, and her LL.M. from Harvard Law School, where she was Dean’s Scholar in Corporate Reorganization and senior editor of the Harvard Business Law Review.
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