In the news today, the video chain Blockbuster, Inc. received approval from the judge assigned to its Chapter 11 bankruptcy case to sell its assets to Dish Network Corp.
Blockbuster is not alone in using a Chapter 11 case to sell assets. Both individual and corporate debtors may sell all of their assets, a single asset, or packages of assets in a Chapter 11 bankruptcy case. A sale of selected assets may provide needed cash to a business debtor which intends to remain in business but to focus that business more narrowly, and a sale of all or most assets may provide funds to satisfy creditors.
On proper terms, and with the approval of the bankruptcy court, a sale of assets can be made free and clear of liens. This can allow a business operation to start fresh, while providing creditors the full value of the company’s assets.
If you are considering requesting Chapter 11 bankruptcy protection, you should consult with an attorney familiar with Chapter 11 bankruptcies to discuss your options. For a free consultation, call (480) 719-1152.