« Just Can't Get Enough | Main | It Is Very Expensive To Be Poor »

The Future?

posted by Stephen Lubben

2015-08-02 18.20.34Some thoughts on the 3d Circuit's recent opinion in LifeCare, which I suspect will lead to even more 363 sales, over at Dealb%k.

Comments

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?

Ah, you noted that irony, did you?

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.

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF