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by Vault Law Editors | July 08, 2009

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Good post

The fundamental break with traditional bankruptcy law common to both cases is, in a nutshell, that is the companies’ restructuring was not achieved through the usual painstaking and time consuming Chapter 11 reorganization process, but rather via (relatively) lightning-quick section 363 sales.  As Lowe notes, “In the former, creditors have more powerful rights, including the right to vote on the reorganization plan. They can object to a section 363 sale--and hundreds did in both Chrysler and GM--but those objections are not enough to hold up the sale.” 

(By the way, these ‘bankruptcy visuals’ by Professor LoPuckiat UCLA Law School are an excellent resource for understanding the thorny and convoluted Chapter 11 process.  Or, at least, how it used to be until recently.)

                                                                            -posted by brian

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