Inforuptcy Blog Categories: Buying assets 101

Buyer Beware! The Battle Between Sections 363(f) and 365(h) of the Bankruptcy Code

Posted by Deborah J. Piazza, Esq. on March 2, 2015

Guest Post By Deborah J. Piazza, Esq.
Tarter Krinsky & Drogin LLP
www.tarterkrinsky.com

INTRODUCTION
So you want to purchase assets from a party that filed for bankruptcy because you believe that in most situations you will receive the bankruptcy court’s blessing that the assets you want to purchase will be purchased and transferred to you free and clear of all liens, claims and encumbrances. While the bankruptcy court has the power to authorize a sale of assets free and clear of liens, claims and encumbrances, it is not without risk, especially for the unwary. For purposes of this article, let’s assume you want to purchase a building that is occupied by one or more tenants who have leases with their landlord who has filed for bankruptcy and is now a debtor.

PURCHASING ASSETS IN BANKRUPTCY
Often times, another party may also have an interest in the same building that you are seeking to purchase. Such other interests could be in many forms such as a lien, easement or as in our example – a leasehold interest held by a tenant pursuant to a written lease. While the bankruptcy court has the power to authorize the sale of the building free and clear of all liens, claims and encumbrances under section 363(f) of the Bankruptcy Code, certain criteria must be met.[1]

WHAT DID I REALLY PURCHASE?
Section 365(h) of the Bankruptcy Code provides tenants with certain rights when their landlord files for bankruptcy protection. There is a short time frame in which all unexpired leases of real property must be assumed or rejected in a bankruptcy case. Under section 365(h) of the Bankruptcy Code, if the landlord seeks to reject a lease in bankruptcy, the tenant has the ability to retain its rights under the lease, including the right of possession of the premises. Some courts have found that a sale free and clear of liens, claims and encumbrances includes free of any leases so that the tenants in our example do not have any rights to remain in possession of the premises at the building. However, other courts have found that Section 365(h) can be enforced in an asset sale so that the purchase of the building, which would otherwise be free and clear of all other interests, would still be subject to the rights of our tenants to remain in possession of their premises in the building you purchased. One court has found the decision depends upon the facts and circumstances of the particular case as to whether a tenant would have the right to remain in possession of its premises in the building being purchased. For example, when the tenant was an affiliate of the landlord, the court found that the tenant was not entitled to retain its possessory rights in the premises.  

Therefore, the purchase of the building you believed would be vacant and free of other interests, including those of its tenants, could now be subject to the possessory rights of the tenants in the premises which you did not anticipate. Further complicating the issue, a tenant’s possessory rights are usually determined by applicable state law. For anyone who has had to evict a tenant in New York City, landlord-tenant court can be a very expensive and frustrating experience.

Until recently, no court has tried to reconcile these two provisions of the Bankruptcy Code. However, in May of last year, the United States District Court for the Southern District of New York attempted to reconcile the two provisions. The District Court found as long as the sale of assets satisfies the criteria of section 363(f), as set forth in footnote 1 above, the sale can proceed free and clear of the tenant’s possessory interests. However, such holding is a red herring.

DIDN'T I PURCHASE THE BUILDING FREE OF TENANTS?
If a court has found that our building may be sold free and clear of a tenant’s possessory interests in the premises, regardless of how the court has made such determination, the tenant would still be entitled to what is known as adequate protection under section 363(e) of the Bankruptcy Code. Because adequate protection is defined the ‘indubitable equivalent” of the tenant’s interest, adequate protection could be determined to mean possession or monetary compensation.  Thus, even if our seller is successful in having the sale of the building approved, free and clear of the tenant’s possessory interests, the tenant may still have the right to possession of the premises as adequate protection and you as purchaser could be saddled with an unanticipated tenant.

While this article has focused on real property purchases and leases, these same principles also apply to licensees of intellectual property. If you are seeking to purchase assets which include license agreements, the licensees under such license agreements may be entitled to retain their rights or be provided with adequate assurance.

CONCLUSION
When purchasing an asset in bankruptcy it is very important to keep in mind there may be other parties with rights to the property. It is very important to understand prior to a sale what leases or other interests may exist and, if possible, to know the intentions of the current tenants and other parties in interest. Therefore, it is imperative a purchaser of assets conducts proper due diligence in consultation with counsel well versed in bankruptcy as well as other relevant areas of law, including applicable state law.

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[1] Specifically, section 363(f) states:

(f) The trustee may sell property under subsection (b) or (c) of this section free and clear of any interest in such property of an entity other than the estate, only if -   (1) applicable nonbankruptcy law permits sale of such property free and clear of such interest;   (2) such entity consents;   (3) such interest is a lien and the price at which such property is to be sold is greater than the aggregate value of all liens  on such property;   (4) such interest is in bona fide dispute; or   (5) such entity could be compelled, in a legal or equitable proceeding, to accept a money satisfaction of such interest.

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Deborah J. Piazza, Esq. is a Partner in the Bankruptcy and Corporate Restructuring Group at Tarter Krinsky & Drogin LLP. She handles transactional, litigation and advisory work relating to various types of restructurings, commercial finance, bankruptcies and workouts. She also sits on the panel of chapter 7 trustees in the Southern District of New York. Tarter Krinsky & Drogin LLP is a general practice law firm with in-depth expertise in every area of law including, but not limited to, real estate, landlord-tenant, intellectual property, corporate, construction, tax, employment and ERISA with offices in New York City and New Jersey.

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To use the only search tool to find bankruptcy asset sales across the country, you can sign up to our Maverick plan for $99 / month (cancel any time).

If you are a real estate investor interested in short sale leads from dismissed chapter 13 cases, you can sign up to our new reports plan for $49 / month (cancel any time).

If you prefer, you can also schedule a 15 minute web demo so you can see for yourself how to get started.

Schedule a Demo

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You May Also Be Interested In:
The 363 Bankruptcy Sale Procedure – Broken Down and Simplified
Property of the Estate Under 11 U.S.C. § 541
The Automatic Stay
In Which District/Venue Should You Purchase the Asset?
Why U.S. Bankruptcy Acquisitions Make Good Sense For Foreign Investors
Overbid? What is that?
Is Your Bankruptcy Asset Purchase Lien Free? Why?

Is Your Bankruptcy Asset Purchase Lien Free? Why?

Posted by Matthew C. Lein, Esq. on February 18, 2015

Guest Post By Matthew C. Lein, Esq.
Lein Law Offices
www.leinlawoffices.com

INTRODUCTION
The purpose of this article is to help investors (from beginner to advanced) understand what it means to buy an asset lien free through the bankruptcy court.  To do so, I will explain what a lien is, and how a lien can be satisfied both outside of and through the bankruptcy court.  To help explain the above, I will use a simple example where Ivan Investor would like to purchase a home owned by Harry Homeowner.  I will then end with a real world example where an investor was able to purchase an asset lien free from a seller through the bankruptcy court.  My hope is that potential investors will then understand how value can be created in some instances by buying assets through the bankruptcy court.  

WHAT IS A LIEN?
A lien is a “legal right or interest that a creditor has in another's property, lasting usually until a debt or duty that it secures is satisfied.”  Black's Law Dictionary (9th ed. 2009).  The person whom owns or has control of said lien against property is the Lien Creditor or Lienholder.  

Liens can come in a variety of forms.  Such forms include, but are not limited to: Mortgages, IRS Liens, Judgment Liens, Mechanic’s Liens, and Child Support Liens.

The above types of liens can be further classified into two distinct categories: secured and unsecured. A secured lienholder is often given an interest in an asset used as collateral in return for borrowing money to a buyer (E.g. when a debtor buys a home or car using funds given by a bank).  An unsecured creditor extends credit to a debtor without collateral (E.g. Credit Cards).  

HOW IS A LIEN SATISFIED IN A NORMAL SALE?
In most non-bankruptcy sales, liens are satisfied depending on their unsecured or secured status, and when the lien filed.  

Consider the following situation: Harry Homeowner wants to sell his home to Ivan Investor for the assumed fair market value of $100,000 and Ivan Investor will not be financing the purchase – Ivan Investor will pay cash. The following liens are against Harry Homeowner’s home: (1) first mortgage owed to “Alpha Bank” in the amount of $43,000; (2) line of credit owed to “Butternut Bank” in the amount of $17,000; and, a judgment in the amount of $10,000 is owed to Christopher Creditor.  

When the property is sold, the proceeds from the sale will be used to satisfy the creditors in the following order: (1) Alpha Bank; (2) Butternut Bank; and, (3) Cristopher Creditor.  Harry Homeowner will receive $30,000.  Most importantly, however, Ivan Investor will receive the property lien free because the liens to Alpha Bank, Butternut Bank, and Christopher Creditor have been satisfied.  

Fair Market Value              $100,000
Alpha Bank                          ($43,000)
Butternut Bank                   ($17,000)
Christopher Creditor         ($10,000)
Harry Homeowner             $30,000

CAN BUYING AN ASSET THROUGH THE BANKRUPTCY COURT CREATE VALUE FOR THE INVESTOR?
The short answer is yes.  Now let’s assume the same hypothetical as above except now the fair market value of the home is $60,000 and Harry Homeowner has now filed for bankruptcy relief.  Ivan Investor wants Harry Homeowner’s home, but as a shrewd investor, will not pay $70,000 for a home that is worth only $60,000.  The question becomes: Can Ivan Investor buy Harry Homeowner’s home for its fair market value of $60,000?  

Ivan Investor can contact the bankruptcy trustee who is responsible for administrating the bankruptcy estate with an offer.  The bankruptcy trustee will file a notice of motion and motion with the court disclosing the terms of the sale with the court and all interested parties.  If no interested party objects (including Christopher Creditor), the court will likely approve of the sale.  Assuming no transaction costs are involved (which are almost always involved), Ivan Investor’s $60,000 will be disbursed to Alpha Bank and Butternut Bank.  No proceeds will be given to Christopher Creditor or Harry Homeowner.  

Fair Market Value                 $60,000
Alpha Bank                            ($43,000)
Butternut Bank                     ($17,000)
Christopher Creditor                          -
Harry Homeowner                           $0

Applying the above principle in other instances.

The example above is simple, but the principle above is powerful and can be applied in other instances.   For example, not long ago Hostess Brands (the previous owner of the Twinkies pastry), could not “stay current on its $700 million in outstanding loans and keep contributing to the unions’ pension plans.”  http://nypost.com/2011/12/22/hostess-filing-in-mix/.  The above principle was applied (but in a far more complex situation), and Hostess Brands sold many of its businesses’ assets to various investors with the consent of the bankruptcy court to overcome the concerns facing the company.   Today the company that owns what were the assets of Hostess Brands are owned by a new company, but without the concerns that once faced Hostess Brands.

CONCLUSION
Purchasing assets through the bankruptcy courts can create value for investors like Ivan Investor purchasing a single asset or a group of investors purchasing assets from a larger distressed company.  The value created for an investor is having the ability to purchase an asset free of any liens and encumbrances via court approval in instances when potential lienholders, like Christopher Creditor, may claim otherwise.

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To use the only search tool to find bankruptcy asset sales across the country, you can sign up to our Maverick plan for $99 / month (cancel any time).

If you are a real estate investor interested in short sale leads from dismissed chapter 13 cases, you can sign up to our new reports plan for $49 / month (cancel any time).

If you prefer, you can also schedule a 15 minute web demo so you can see for yourself how to get started.

Schedule a Demo

__________________________________

You May Also Be Interested In:
The 363 Bankruptcy Sale Procedure – Broken Down and Simplified
Property of the Estate Under 11 U.S.C. § 541
The Automatic Stay
In Which District/Venue Should You Purchase the Asset?
Why U.S. Bankruptcy Acquisitions Make Good Sense For Foreign Investors
Overbid? What is that?

Overbid? What is that?

Posted by Yosina M. Lissebeck, Esq. on February 4, 2015

Guest Post By Yosina M. Lissebeck, Esq.
Lissebeck Law
www.lissebecklaw.com

Overbid? What is that? The short and easy answer is that an overbid is an auction conducted during a hearing to approve a bankruptcy sale. You see Bankruptcy Code § 363 authorizes a debtor-in-possession or Trustee, to sell property of the estate other than in the ordinary course of business. A proposed sale of estate property will be approved if it is in the best interests of the estate, based on the facts and history of the case.[1] Before the Court can approve such a proposed sale, the Court must find that there is a valid business justification for the sale.[2] In addition to a sufficient business reason for the sale, the Court must find (1) the sale is in the best interest of the estate; (2) is fair and reasonable; (3) the assets to be sold were adequately marketed; and (4) was negotiated in good faith; and (5) that the buyer is proceeding in good faith; and (6) the sale is an “arms-length” transaction.[3] Lastly, the Court must find that the debtor-in-possession gave adequate and reasonable notice of the sale.[4]

There are various types of sales that can take place, but the two most typical are a private sale, and a sale subject to overbid. A private sale is a sale between just the Estate and the purchaser. A sale subject to overbid is a sale between the Estate and the purchaser; but a third party can come into the process and state that it is willing to purchase the asset for more than the sale price, and then there will be bidding between the parties, like at an auction.

The reason why bankruptcy sales are most often subject to overbid is because of the Estate’s duty to maximize the value of the asset for the benefit of creditors. A sales price achieved at auction (or presumably subjecting the sale to overbid) is ordinarily assumed to approximate market value when there is competition by an appropriate number of bidders.[5]

So how does it work? Let’s say the Estate is selling a commercial office building. The Trustee/DIP has marketed the building and has had a lot of interest from potential purchasers. It has entered into a purchase agreement with a buyer for a price of $1,500,000, subject to overbid. The Trustee/DIP will then file a motion with the bankruptcy court to approve overbid procedures. The overbid procedures will vary, but basically they will state that the purchase agreement is the controlling document, that the price is $1,500,000, that the initial overbid will be $1,525,000, and that the bidding increments will be $10,000. The Trustee/DIP will set a deadline for all interested overbidders to participate, usually 7 days before the hearing, and require a deposit and a writing stating the intent to overbid. The Trustee/DIP may also require proof of the ability to close, and will usually also require that the overbidders do their own due diligence prior to the hearing.  While the deposit for the successful overbidder is non-refundable, as it will be applied to the purchase price, the non-successful bidders will receive the deposit back. The Trustee/DIP will file the documents with the bankruptcy court and notice the sale with overbid procedures to all creditors, other parties who showed an interest in the property, and whomever else may want to overbid.  That sale motion is also now picked up by Inforuptcy, which is a great new marketing tool for the Estates.

Now What? If you are interested in participating as an overbidder you follow the directions in the notice. You provide your deposit, you state your intent, and you do your due diligence. You also show up at the hearing and get prepared to participate in a live auction. The attorney for the Trustee/DIP or the court will generally hold that auction, the rules and procedures will be stated in open court, the overbidders will be asked to identify themselves, and the auction will start. Once the bidding has stopped, the court will confirm the sale to the highest overbidder, and ask the next highest overbidder to be the “back up” just in case the sale doesn’t close to the highest overbidder.

What if it is a private sale and you are interested in purchasing the asset? The best thing to do is to contact the Trustee/ DIP and find out if you can purchase the asset for a higher amount. If there is another party who is interested, the Trustee/DIP may then decide to set it for an overbid hearing. If the Trustee/DIP doesn’t respond to you and you really want to purchase the asset for a higher amount, then you can always hire an attorney to object to the sale and tell the Court you want to purchase the asset for a higher amount. The Motion will set forth what the deadline is to file an objection with the Court. As stated above, the Trustee/DIP and Court has to make sure that the sale is in the best interest of the Estate, and a higher price for the asset is usually better. Now I say usually because it could be a complicated sale with a lot of moving parts – then price might not be the only factor the Trustee/DIP is looking at. For example, let’s say the Trustee is selling residential real property, which is owned by the Debtor and a tenant in common, and the Trustee is selling the property back to the tenant in common. In this case, it would most likely be a private sale, not subject to overbid, because of the title issues.

That’s it. Easy right! Now of course, this is just a quick overview of a typical overbid sale. That means there may be factual circumstances, local bankruptcy court preferences, and procedural requirements that may differ. Thus, it is always best to contact a bankruptcy practitioner to answer any questions or assist you with the sale and overbid process.

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[1] In re American West Airlines, 166 B.R. 908, 912 (Bankr. D. Ariz. 1994), citing In re Lionel Corp., 722 F.2d 1063, 1071 (2nd Cir. 1983).

[2] See, e.g., In re 240 North Brand Partners, Ltd., 200 B.R. 653, 659 (9th Cir. BAP 1996).

[3] In re Wilde Horse Enterprises, Inc., 136 B.R. 830, 842 (Bankr. C.D. Cal. 1991).

[4] Ibid.

[5] In re Fitzgerald, 428 B.R. 872, 883 (B.A.P. 9th Cir. 16 2010) (citing In re Lahijani, 325 B.R. 282, 289 (B.A.P. 9th Cir. 2005).

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To use the only search tool to find bankruptcy asset sales across the country, you can sign up to our Maverick plan for $99 / month (cancel any time).

If you are a real estate investor interested in short sale leads from dismissed chapter 13 cases, you can sign up to our new reports plan for $49 / month (cancel any time).

If you prefer, you can also schedule a 15 minute web demo so you can see for yourself how to get started.

Schedule a Demo

__________________________________

You May Also Be Interested In:
The 363 Bankruptcy Sale Procedure – Broken Down and Simplified
Property of the Estate Under 11 U.S.C. § 541
The Automatic Stay
In Which District/Venue Should You Purchase the Asset?
Why U.S. Bankruptcy Acquisitions Make Good Sense For Foreign Investors

P.S. If you are a trustee, please download our brochure to learn how to find stalking horse bidders for free.

Why U.S. Bankruptcy Acquisitions Make Good Sense For Foreign Investors

Posted by Leonard P. Goldberger, Esq. on January 30, 2015

Guest Post (1/3) By Leonard P. Goldberger, Esq.[1]
Stevens & Lee, P.C.
www.stevenslee.com

Introduction
The U.S. bankruptcy court system is a marketplace or, as I like to think, a giant discount department store.  You can buy anything, cheap.  Although not exactly like a traditional marketplace because current owners are not necessarily “willing” sellers, the bankruptcy process compels some form of transaction by which liquidity is created to repay creditors.  One type of transaction is, of course, the section 363 sale (or its first cousin, a liquidating plan of reorganization).[2]  Moreover, this marketplace has (for various reasons beyond the scope of this series of articles) become even more robust during the aftermath of the financial crisis.  Indeed, the nature of business reorganization cases is trending from traditional stand-alone reorganizations to relatively quick sales of assets early in the bankruptcy case.  As the roots of globalization sink deeper, this marketplace provides many opportunities for foreign investors to make acquisitions of quality assets (or otherwise deploy capital) that may be superior to those in their domestic markets.  These foreign investors have the cash and are willing to spend it abroad;[3] they have their own government’s approval – as well as various U.S. governments’ incentives – to make outbound investments; and they have the strategic need to do so to effectively compete in a global economy.  

Five Reasons Why
I’ve identified the following five reasons why making acquisitions out of U.S. bankruptcy cases make good sense for foreign investors. (There are undoubtedly others.)

  1. Good Stuff.  The range of assets available for acquisition in the U.S. bankruptcy court system is exceedingly broad.  (One need only read a single issue of Inforuptcy Bankruptcy Assets for Sale to quickly reach this conclusion.)  In this discount department store, the choices of investment opportunities are varied and extensive, and often align themselves well with strategically-targeted industries,[4] such as renewable energy, advanced manufacturing, pharmaceuticals and biotechnology, medical devices, healthcare technology, computer and information technology, retail and consumer brands, waste management and environmental services, financial services, shipping and distribution, natural resources and, of course, the perennial favorite, real estate.  As such, foreign investors can acquire either discrete strategically-important assets, or entire companies.
     
  2. Strategic Positioning.  In the increasingly competitive global economy, the need for foreign investors to engage in strategic positioning becomes ever more important.  This applies equally to those that want access to the valuable U.S. market in order to build global brands, as well as to those seeking advanced U.S. technologies (no military sales, please) to improve their competitiveness in their own domestic and/or other international markets.  Assets are available in the U.S. distressed marketplace that can satisfy both of these strategic objectives.  For example, in 2014, Sailing Innovation, a consortium of a Chinese investment firm and a Chinese department store operator, bought Brookstone, the 240 store U.S. mall-based retailer, at a bankruptcy court auction for $173 million. The consortium will continue to operate the Brookstone stores as part of a larger strategy that involves other international acquisitions. Increasingly, foreign investors are able to get past the so-called stigma of bankruptcy and recognize the hidden opportunities of acquiring high quality, but otherwise stranded, U.S. assets, i.e., good assets trapped in financially-distressed corporate structures.  
     
  3. Open and Transparent Process.  Like any good discount department store, the U.S. bankruptcy courts are always open to the public.  Moreover, with appropriate guidance from experienced U.S. insolvency practitioners, the bankruptcy sale process is fairly transparent.  Once a foreign investor decides to get into the game, the playing field is generally level.  This means that opportunities to participate in the bidding process are available regardless of national origin;[5] foreign investors have the same ability as their domestic counterparts to be heard on objections to the fairness of bidding procedures before bankruptcy court approval; they have equal access to financial and business-related information necessary to inform the investment decision; the bidding process is open and transparent, and subject to bankruptcy court oversight to enforce legal prohibitions against collusion; and subject to final bankruptcy court approval to ensure the good faith of the entire sale process.
     
  4. Free and Clear, Final & Certain.  An exceptional aspect of the U.S. bankruptcy sale process is the ability to provide foreign investors with practical business assurances necessary to mitigate the bundle of risks inherent in any cross-border transaction.  These assurances flow from the combination of  sections 363(f) and (m)[6] which together allow the bankruptcy court to not only to “cleanse” assets of liens, claims, encumbrances and other interests by providing “free and clear” title, but also to provide legal finality and financial certainty that the deal is done once the sale closes.  The ability to efficiently and effectively deliver this practical result benefits foreign investors who might otherwise reluctantly have to be become entangled in messy, protracted, and expensive U.S. litigation in order to exploit the commercial benefits of the targeted assets.
     
  5. Cheap (Sort Of).  Distressed assets often trade at liquidation value, or below.  Between the generally lowered expectations of value in the bankruptcy marketplace, and bankruptcy court-approved sale procedures  that do not always create true competitive bidding, distressed assets can often be acquired cheaply.  This, of course, provides an incentive for foreign investors to participate in this marketplace.  Conversely, in a world where “cash is king,” U.S. creditors are incentivized to embrace sales to foreign investors.  Foreign investors flush with cash (e.g., Chinese state-owned enterprises) can affect a favorable outcome in a marginal bankruptcy case where the alternative to the instant liquidity created by a sale is  for a secured creditor to bid in its lien and simply take back its collateral.  Sometimes, however, in the face of a foreign investor’s compelling strategic need for targeted assets, price considerations become secondary.  Consider, for example, where Wanxiang Auto Group (a large, state-owned Chinese auto parts company, acting through its U.S. subsidiary) outbid Johnson Controls (a U.S. company) by over $125 million to acquire the advanced lithium-ion electric automotive battery technology out of  the A123 Systems bankruptcy case.  (A year later, in the Fisker Automotive bankruptcy case, Wanxiang Auto Group also acquired the Fisker electric car – which (not coincidentally) uses the A123 Systems electric battery.

Conclusion 
The marketplace that exists within the U.S. bankruptcy court system is increasingly affected by the powerful forces of globalized commerce.  Not surprisingly, forward-thinking foreign investors recognize – and, accordingly, are attracted to – the many investment opportunities in the U.S. distressed marketplace in order to satisfy their global strategic goals and objectives.  Not only is an array of strategically significant assets readily available, but the legal and commercial benefits inherent in the process itself encourage foreign investors to participate in this marketplace.  As successful acquisitions like A123 Systems-Fisker Automotive illuminate the possibilities, other foreign investors will undoubtedly follow.  Indeed, although Wanxiang Auto Group is a large Chinese state-owned enterprise, these types of successes will encourage foreign investors who are small to medium-sized enterprises to also participate.  All of this will likely increase the vibrancy, competitiveness and liquidity of the U.S. distressed marketplace, all to the benefit of (primarily, U.S.) creditors.  Other aspects of this process will be explored in the next two articles in this series.

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[1] Leonard P. Goldberger, Esquire is a cross-border insolvency lawyer, and works with Chinese investors in acquiring financially-distressed businesses and assets out of U.S. bankruptcy cases.  He has written and lectured on this topic in the U.S. and China.  The opinions expressed herein are solely those of the author and do not represent those of either his law firm or its clients.

[2] See 11 U.S.C. § 363 (sales of assets); 11 U.S.C. § 1123(a)(5)(D) (liquidating plan of reorganization).

[3] In 2014 alone, according to a study by Rhodium Group, Chinese investors made investments in the U.S. totaling in excess of $12 billion. See http://rhg.com/notes/chinese-fdi-in-the-united-states-q4-and-full-year-2014-update.

[4] See, e.g., the various industries targeted for development by China’s 12th Five-Year Plan, adopted by China's legislature, the National People's Congress, on March 14, 2011.

[5] Although foreign investors can bid freely in a bankruptcy sale, closing on any acquisition may be subject to review by The Committee on Foreign Investments in the United States, a federal inter-agency committee chaired by the Secretary of the Treasury that is charged with reviewing transactions that result in control of a U.S. business by a foreign person in order to determine the effect of such transaction on the national security of the United States.

[6] 11 U.S.C. §§  363(f) and (m).

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To use the only search tool to find bankruptcy asset sales across the country, you can sign up to our Maverick plan for $99 / month (cancel any time).

If you are a real estate investor interested in short sale leads from dismissed chapter 13 cases, you can sign up to our new reports plan for $49 / month (cancel any time).

If you prefer, you can also schedule a 15 minute web demo so you can see for yourself how to get started.

Schedule a Demo

__________________________________

You May Also Be Interested In:
The 363 Bankruptcy Sale Procedure – Broken Down and Simplified
Property of the Estate Under 11 U.S.C. § 541
The Automatic Stay
In Which District/Venue Should You Purchase the Asset?

P.S. If you are a trustee, please download our brochure to learn how to find stalking horse bidders for free.