Ensuring Asset Purchases Cleansed through Bankruptcy Stay Free and Clear (Volume 34, Number 5– May 2018)
Author: Patrick L. Hughes.; Martha B. Wyrick.; Kelsey L. Zottnick.
Source: Volume 34, Number 05, May 2018 , pp.49-58(10)
Abstract:
Purchases made under a bankruptcy court sale order are supposed to be free and clear of all legacy liabilities, except those expressly assumed by the transactional agreements. However, assuring that result, the authors write, is also dependent on careful drafting and attention to the notice process mandated by due process. Writing from a litigator’s perspective, the authors outline the substantive risks that allow claims to revive and be asserted well after closure of the transaction approved by the bankruptcy court.Keywords: “Known” and “Unknown” Claimants; Lack of Effective Due Diligence; Avoiding Unwanted Claims
Affiliations:
1: Haynes and Boone, LLP; 2: Haynes and Boone, LLP; 3: Haynes and Boone, LLP.