Asset Sales

Dive into § 363 sales issues, including whether there are limits to “free and clear”; the GM conflict between §§ 365(h) and 363(f) (“lease-stripping”); sales free and clear of leasehold interests, restrictive covenants and override royalties; being free and clear of successorships in CBAs; selling free and clear of environmental liabilities (La Paloma, Exide); and loan-to-own strategies.

ABCs aren’t just for kids anymore! Come join some of the nation’s leading experts as they identify the important building blocks of this tool to liquidate insolvent companies.

This panel focuses on the most important adequate-protection issues, including current cash payments in the form of legal fees for “secured” creditors, how diminution in value claims for different types of assets are determined, how intercreditor agreements may limit junior secured creditors’ rights to demand and receive adequate protection, and the valuation of assets.

The panel explores the challenges with foreign asset discovery in chapter 15 proceedings. Most foreign discovery is obtained either pursuant to Federal Rule of Bankruptcy Procedure 2004 or through the application of the Hague Convention. But how effective are these methods given the cumbersome and often complicated process of obtaining discovery? Are there more effective and efficient methods toward obtaining these results? Do other foreign jurisdictions have less cumbersome and more expedited processes to propound this type of discovery? The discussion includes commonly faced issues in obtaining discovery when locating and seizing assets, how to obtain records to determine the financial condition of the parties, and how foreign law may work to limit discovery.

This panel uses hypotheticals to discuss the ethical problems facing counsel and their clients in § 363 sales including collusion, abuses during due diligence, and successor liability.

Borrowers have been using relaxed credit agreement and bond covenants to “strip” assets from the collateral/asset pools that lenders think secure them. Neiman Marcus, J.Crew, PetSmart and BC Partners are recent examples. By focusing on these examples, this panel will discuss the covenant-lite structure of today, what the documents really say, who benefits and who gets hurt, and who influences the structure and outcome.

This panel will explore how to maximize values in an auction/§ 363 sale for all constituents, and reveal “tricks of the trade” regarding how to generate value for the estate and unsecured creditors in different ways.

Hosted by the Asset Sales and the Financial Advisors & Investment Banking Committees This panel will focus their discussion on the need for disinterested independent directors to employ their own counsel/FAs/IBs in connection with the sale of assets. The main topic will be based on the facts in the Toys “R” Us case, where six groups of independent managers and directors have their own separate counsel and advisors. The panelists believe that similar facts exist in other recent cases, and more cases will reflect this in the future. The panel will discuss such topics as the need for this type of representation, the costs associated and how such costs are accounted for in the case, and what other legal and ethical implications all of this can have on the sale of a debtor’s assets.

Join our panel in exploring the intersection of bankruptcy and IP. Panelists will discuss the rights of a licensee when a licensor files for bankruptcy, the rights of a licensor when a licensee files for bankruptcy, and how such rights can impact secured creditors. Discussions will include copyright licenses, patent licenses and trademark licenses, including the Tempnology case that was recently granted certiorari by the Supreme Court. Where are there areas of litigation that is most likely to arise in bankruptcy? What about sample language for license agreements? Or issues that can arise in the context of distressed M&A? Join us to find out!

Bankruptcy sales differ in many respects from non-bankruptcy sales. This webinar highlights some of the unique provisions in the asset purchase agreement that may vary between a bankruptcy and non-bankruptcy sale that practitioners should be aware of when drafting and negotiating in the context of a bankruptcy sale, including, for example, applicability of covenants, conditions, indemnities and hold-backs.