Law360 Column: Sale and Assignment Notices

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February 19, 2009

Debtors in corporate reorganization cases under Chapter 11 of the Bankruptcy Code have a variety of tools and options available to them, one of which is the ability to sell assets free and clear of liens and interests and to assume and assign the debtor's beneficial contracts. When properly structured and approved by the bankruptcy court, these transactions can be good news for the debtor, buyer and counterparties to the contracts to be assumed and assigned. As with all bankruptcy matters, however, sale and assumption and assignment motions carry risks for non-debtor parties.

The case of In re: U.S. Wireless Data Inc., for example, confirms that parties that have contracted with bankrupt companies must diligently monitor the bankruptcy proceeding and adhere to sale and assignment notices establishing bar dates for filing cure claims. The issues and concerns raised in In re: U.S. Wireless Data Inc. are discussed in "Following Sale and Assignment Notices"  authored by Briggs attorneys Richard D. Anderson and John R. Brennan. The article was originally published by Portfolio Media on