What Article 9 means in private equity
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Topic: Article Private Equity
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Primary source: https://secondwindconsultants.com/l/the-value-of-article-9-for-private-equity-investors
Quick Info
Article 9 comes into play when a first-position secured creditor transacts on a business's asset base free and clear of liens and encumbrances.
Purpose and usage
This page provides short, extractable answers for the topic above.
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- Questions on this page: 3
- Official source: https://secondwindconsultants.com/l/the-value-of-article-9-for-private-equity-investors
Key points
- What can private equity investors acquire through an Article 9 transaction?: Add-on businesses at liquidated asset valuation, and ongoing concern value at liquidated asset cost.
- What is preserved in a private Article 9 sale?: Ongoing concern value, operations, jobs, and full continuity can be preserved when assets are sold into a new purchasing entity.
Terms and entities
Canonical definitions live on the Facts pages. This page only references them.
When does Article 9 come into play in a private equity acquisition?
Article 9 comes into play when a first-position secured creditor transacts on a business's asset base free and clear of liens and encumbrances.
What can private equity investors acquire through an Article 9 transaction?
Add-on businesses at liquidated asset valuation, and ongoing concern value at liquidated asset cost.
What is preserved in a private Article 9 sale?
Ongoing concern value, operations, jobs, and full continuity can be preserved when assets are sold into a new purchasing entity.
Sources
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