Billions of dollars and countless hours are devoted to finding, bidding for and purchasing distressed companies or strategic assets from bankruptcy estates. These opportunities arise most often in Chapter 11 cases that were filed with the sale of business assets as a primary goal or at least a strong possibility. Commonly, companies with one or more strong core businesses
are saddled with too much debt and are forced to seek Chapter 11 bankruptcy protection. Sales of entire businesses are attractive to potential buyers because § 363(f) of the Bankruptcy Code allows for the sale of property free and clear of any interest in the property sold if certain requirements are met. Section 363 sales are an integral part of the bankruptcy rubric, which may occur prior to proposal of a plan or as part of a plan. However, potential buyers must be willing to devote time and money to pursue a bankruptcy deal with uncertain results.
