Counsel to Lender in Sale of Debtor Collateral, Repayment of Loan
Represented the lender in providing a debtor-in-possession loan with appropriate protections for the lender after borrower filed for protection under Chapter 11. When a liquidation became necessary, the debtor-borrower brought a motion to sell its assets under Section 363 of the Bankruptcy Code. Research on the judge disclosed an aversion to sub rosa plans (a sale of substantially all of a debtor’s assets without an approved plan of reorganization) and brought a prophylactic motion for stay relief. Provided proper notice for a private secured party sale pursuant to Article 9 of the Uniform Commercial Code. When the judge denied the motion to sell and granted the motion for stay relief instead, the parties proceeded immediately to close the Article 9 sale, resulting in full payment of the bank’s loan.