Asset Sale Benefiting Only Secured Creditor Fails Justification Test

The pre-confirmation sale of assets in a case filed under Chapter 11 of the Bankruptcy Code is often an important step in the reorganization process. However, the U.S. Bankruptcy Court for the Eastern District of Pennsylvania has held that such a sale does not satisfy the business justification test when the sale benefits only the debtor's secured creditor.

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Asset Sale Benefiting Only Secured Creditor Fails Justification Test

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