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The Bankruptcy StrategistLJN NewslettersNewsSections

A Tale of Two Asset Sales

By ALM Staff | Law Journal Newsletters |
January 28, 2014

The bankruptcy process is intended to maximize value inuring to the stakeholders of a troubled company ' a goal casually referred to as obtaining the “highest and best” value from the process. Restructuring professionals seek well-worn paths to achieve the highest and best value for a troubled company's assets, whether pursuing, settling or assigning claims or causes of action; unlocking hidden value in tax attributes; or running robust sale processes. Often, parties equate “highest” with “best,” which leads to sales processes with foregone conclusions and we never know what opportunities were left on the table that could have increased value for stakeholders. What follows is an example in which a Chapter 7 trustee, in deliberately separating the measure of “highest price” from “best outcome,” unlocked significant value for all stakeholders.

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