Shadow, Light and Darkness: Bankruptcy's Business in-Fact and Business in-Law Justification Test under Sec. 363(b).

Abstract

In this article, Professor Ferguson addresses the problem of business debtors who avoid the reorganization process of Chapter 11 bankruptcy by instead selling their business under Bankruptcy Code § 363. There is concern that the sales are not producing the best and highest values. Professor Ferguson proposes a two part business in-fact and business in-law process that he believes will produce fairer and more optimal results.