Blog — August 18, 2022
In the context of a distressed or bankruptcy sale, representations and warranties insurance has a number of benefits, especially to the Buyer, but also to the Seller/Debtor or Creditor. Challenges also exist for distressed and Bankruptcy Court approved Section 363 Sales.
A 363 Sale refers to the sale of a Debtor’s assets pursuant to Section 363 of the US Bankruptcy Code. Such a Sale enables the Debtor to fulfill its obligations to its Creditors by selling its assets and using the proceeds to settle its debts.
Offering a R&W Policy in a 363 Sale would likely create certain additional benefits to the traditional 363 Sale process including: