One of the known advantages to buying assets through a bankruptcy sale is that the Court may enter a “free and clear” order stating that you’re buying the assets free of any liabilities. As the buyer, this means you’re wholly insulated from potential lawsuits by consumers injured by the business prior to your purchase – or does it? In certain instances, buyers may not be able to escape liability for what was done in the past.
In the CLE-accredited webinar “Successor Liability Claims in Bankruptcy Sales: Are You Really ‘Free and Clear,’” SulmeyerKupetz Member Mark Horoupian discusses:
- General discussion of successor liability claims under non-bankruptcy law.
- What protections can be afforded by the bankruptcy court through Section 363.
- Limitations in “free and clear” sales orders and potential claims you need to be aware of.
- Assessing the risk of successor liability and how to take full advantage of Section 363.
- Recent court rulings surrounding successor liability claims.
“Successor Liability Claims in Bankruptcy Sales: Are You Really ‘Free and Clear’” is available here.