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William F. Gray, Jr., a partner at Torys, and Timothy B. Martin, an associate at the firm, write that Linens 'n Things and Circuit City are two recent examples of large businesses that chose to abort the Chapter 11 process in its infancy and liquidate their businesses shortly after filing because of their inability to finance post-petition operations. They focus on pre-negotiated salesas a means to foreshorten the bankruptcy process and allow the sale of all or substantially all of the debtor's assets at the beginning of the Chapter 11 case.
March 02, 2009 at 12:00 AM
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