Rick Chance, Head of Special Situations Advisory Group, was quoted in The Deal

August 7, 2009

Rick Chance, managing director and group head of the Special Situations Advisory Group with KPMG Corporate Finance LLC, was quoted in John Blakeley's article in The Deal, entitled "Lehman, Chrysler, GM: The Fallout."

Section 363 sales are no secret to savvy buyers. Section 363 of the U.S. Bankruptcy Code affords debtors the opportunity to sell assets free and clear of liens, essentially allowing a buyer to cherry-pick which liabilities to assume and which to leave behind. So buyers have not just discovered Section 363; they're making it a requirement of sale.

Section 363 sales have become so popular that, "in just about every [M&A] transaction that's distressed, there's a cost-benefit analysis" that compares a 363 sale to an out-of-court restructuring, says Chance. And the analysis is favoring the sale more often.

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