Second Circuit Reaffirms Flexible Standards Governing Section 363 Sales in Chrysler Decision

On August 5, 2009, the United States Court of Appeals for the Second Circuit issued an opinion setting forth the reasoning behind its June 2009 approval of the $2 billion sale of substantially all assets of Chrysler LLC to a newly-formed entity, backed by the United States Treasury Department and managed by the automobile manufacturer Fiat, under Section 363 of the Bankruptcy Code.  This decision reaffirms precedent which established that a flexible standard which meets the needs of individual situations should govern Section 363 sale transactions.  We discuss the factual background of the case and the court’s legal analysis.

To read the full article

Continue reading your article with a HFLR subscription.