Pla2na/Shutterstock.com Foreign Investors: Understanding the Chapter 11 Sale Process
A look at the Chapter 11, section 363 sale process, and the less common plan process. Plus, certain US regulations may be applicable in Chapter 11 when assets are sold to foreign investors. These US regulations are also addressed in this article.
January 28, 2021 at 02:00 PM
8 minute read
The COVID-19 pandemic has resulted in unprecedented disruption for many sectors. As a result of this disruption, experts are anticipating a flood of distressed assets hitting the market—many of which will be sold via a Chapter 11 sale process. For foreign buyers, Chapter 11 asset acquisitions present a special opportunity to purchase US assets at a steep discount while avoiding the risks of taking on burdensome liabilities. The unique nature of the Chapter 11 bankruptcy process enables purchasers of distressed assets to receive value-enhancing protections that would otherwise be unavailable to them in a more standard purchase of assets or merger.
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