Distressed transactions in bankruptcy court have become big business. Sales under Section 363 of the bankruptcy code provide predictability and reliability (in the form of a court order delivering “free and clear” assets) under even the most turbulent of circumstances. Commonly known simply as “363 sales,” these transactions can provide an opportunistic purchaser with significant upside under the right circumstances. But the truly opportunistic buyer will need to buckle up and be prepared to move with lightning speed in a highly competitive and transparent forum.
For more on the ins and outs of 363 sales and navigating troubled company acquisitions, listen to the recent Nota Bene podcast episode (on Apple Podcasts, Google Podcasts, Spotify, or Stitcher) with Sheppard Mullin partners Ori Katz and Michael Cohen.
Putting it Into Practice: Companies looking to navigate the fast-paced world of 363 sales should buckle up for a turbulent, intense and (potentially) very rewarding experience, where the nimble acquirer can purchase assets in deeply troubled circumstances while leaving behind liabilities that would otherwise be associated with such assets.