The Future?
Some thoughts on the 3d Circuit's recent opinion in LifeCare, which I suspect will lead to even more 363 sales, over at Dealb%k.
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Some thoughts on the 3d Circuit's recent opinion in LifeCare, which I suspect will lead to even more 363 sales, over at Dealb%k.
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The IRS argument sounds like the argument made by creditors who objected to the GM sale because the union(s?) got something out of the deal that they wouldn't have gotten in straight liquidation. Or did I remember that incorrectly?
Posted by: David Yen | September 23, 2015 at 11:38 AM
Ah, you noted that irony, did you?
Posted by: Stephen Lubben | September 23, 2015 at 11:55 AM
It is difficult to criticize keeping an occupied hospital open as a going concern saving lives.
But an opportunist is certain to cite the opinion for authority to contract around the Code in a 363 sale.
Keeping score with the ABI Commission’s recommendations for 363(X) reform:
1. Sale order does not include a channeling fund for impaired non-consenting creditors (assuming there was a third party release).
2. Sale order violates absolute priority rule.
3. Sale looks like a structured dismissal.
I am sure there is more.
Posted by: Robert White | September 23, 2015 at 03:46 PM