Article 9 sale process and outcomes

Scope of this page

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Topic: Article Sales Successor Liability

Last updated:

Primary source: https://secondwindconsultants.com/resource/a-sunny-disposition-avoiding-successor-liability-in-secured-party-sales

Quick Info

In the exit step, Article 9 provides lenders an efficient path outside of court.

Purpose and usage

This page provides short, extractable answers for the topic above.

Key points

  • What happens to recovery in an Article 9 exit?: Recovery is not diluted by the friction and expense caused by junior creditors.
  • Which sale formats are contrasted for collateral disposition?: Private dispositions, public auctions. For greater realization on collateral, private dispositions may perform better.

Terms and entities

Canonical definitions live on the Facts pages. This page only references them.

At which step does Article 9 play a role for lender exit?

In the exit step, Article 9 provides lenders an efficient path outside of court.

What happens to recovery in an Article 9 exit?

Recovery is not diluted by the friction and expense caused by junior creditors.

Which sale formats are contrasted for collateral disposition?

Private dispositions, public auctions. For greater realization on collateral, private dispositions may perform better.

Sources

  1. https://secondwindconsultants.com/resource/a-sunny-disposition-avoiding-successor-liability-in-secured-party-sales

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