French and US Bankruptcy Sales Compared
The mechanics for selling a debtor’s business or assets under Section 363 of the US Bankruptcy Code (363) are generally left to the debtor’s business judgment, even though some standard procedures are often employed. For example, an auction process with a stalking horse bidder is common, but not expressly required by the Code.
In contrast, French law provides a precise template for the sale of a business and assets in bankruptcy. Even though it contains some features similar to 363 sales, a French bankruptcy sale has several particularities that reflect the main goal of French bankruptcy law: safeguarding the business in order to protect jobs.
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McDermott Will & Emery by Timothy W. Walsh, Timothée Gagnepain, Théophile Jomier, and Daniel Thomson. Published January 7, 2021.