Mergers and acquisitions are often threatened by the financial condition of one or more of the participants. Often times the values are only present if the enterprise will not become involved in third party litigation or endless disputes over title, successor liability, or other problems such as past regulatory compliance or environmental issues. There are always challenges for a business filing Chapter 11 bankruptcy but often it is the advantage of bankruptcy that must be considered. One of the largest challenges, and greatest benefits to a financially struggling business, involves purchase and sales of assets during the Chapter 11 process. The purchase and sales of these assets are governed by 11 USC § 363 (Section 363 of the United States Bankruptcy Code). Section 363 allows a debtor to sell its assets by following the procedures set down by the bankruptcy court. Most of these provisions involve complex procedures concerning the manner the assets should be sold, including simple purchase and sale agreements, to the more complex "stalking horse" auction process that permits bidding, overbids, breakup fees and the like.

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The attorneys at Jordan & Ortiz, P.C., have overseen a large number of these types of § 363 sales. We work to ensure approval of the purchase or sales process and to ensure the process takes place in a manner most beneficial to your company's bottom line, or to advise and direct participants in the process of acquiring assets from a debtor's bankruptcy estate.