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A Change in Plans: Chrysler and General Motors Cases Reveal Popularity of Section 363 Sales

Connecticut Law Tribune

September 28, 2009

Authors: Eric S. Goldstein

This year has seen the filing of two of the largest business bankruptcy cases in history. The Chrysler and General Motors Chapter 11 cases were both filed in the Southern District of New York during the worst economic climate our country has experienced since the Great Depression. The steps taken by Chrysler and GM to address their financial difficulties have resulted in several interesting bankruptcy issues appearing in the national headlines. These is-sues, although not new, could impact the future of Chapter 11 cases for years to come.

While the reports of a “quick” and “speedy” exit from bankruptcy by Chrysler and GM were many, the fact remains that the Chrysler and GM Chapter 11 cases are still pending and will continue for some time. What was not fully reported and is particularly interesting about the Chrysler and GM cases was the process employed by both companies to ad-dress their serious financial problems, commonly known as the “Section 363” sale.

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