We help clients purchase businesses or business assets while a company is in bankruptcy. Such a purchase can offer considerable value at significant discounts, but the process can be complicated and challenging. The bankruptcy liquidation process is rigidly structured and contains significant impediments. Dworken & Bernstein’s corporate bankruptcy attorneys can help purchasers navigate this process.

Purchasing a business, or assets of that business, when it is in bankruptcy is more complex that a purchase made from a solvent business, but it typically is much more cost-effective.  Often businesses in a Chapter 11 bankruptcy will sell off assets that will not be utilized as part of their reorganization plan.  Due to the cost advantages of buying through the bankruptcy process, there are often a number of interested businesses, requiring attorneys skilled in negotiation in this area.  When a business is in the bankruptcy process, it will need the court’s approval to sell its assets, and the buyer will be required to follow the procedures for the sale as listed in the court’s order.  The bankruptcy court will hold a hearing to determine whether to approve the purchase, at which time competing buyers may make an offer.  Our attorneys are experienced in bankruptcy law and the intricacies of these types of purchases, as well as obtaining court approval.  Experienced counsel is also necessary to ensure that no claims with respect to the assets survive the sale and to skillfully negotiate not only with the debtor business, but with other interested buyers. Unlike purchasing assets from a solvent business, purchasing from a business in bankruptcy may require that the purchaser deal with the bankruptcy trustee, the creditors committee, other interested buyers, and those who have liens on the assets. 

Those looking to buy a business or assets in Chapter 11 face a complicated procedure that requires knowledge of bankruptcy laws and process, strategic expertise, and cunning negotiating techniques to accomplish a successful bankruptcy acquisition. Our attorneys can guide you through every step in the process of the acquisition, be it asset purchase, valuation and acquisition of the entire business via bankruptcy auction or direct sale. 

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