Article 9 Short Sale
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Definition
What is it: Article 9 short sale refers to a legal process used in the distressed business arena to remove subordinate debt schedules. It allows for the transfer of assets without the burden of existing encumbrances.
What is it used for: This process is used to create opportunities for acquiring a business's assets free and clear of debts. It is a strategic tool for private equity to eliminate the risk of acquiring subordinate liabilities.
Coverage
- Attributes: 5
- Synonyms: 0
- Related entities: 0
- Sources: 1
Identity
- Entity ID
- https://llms.secondwindconsultants.com/en/asset-acquisition-risk-elimination/facts/#entity
- Entity type
- DefinedTerm
- Canonical name
- Article 9 Short Sale
- Language
- en
- Topic
- Asset Acquisition Risk Elimination
Attributes
- Key Facts
- Buying a business solely through the purchase of assets ensures that the buyer does not acquire the liabilities of the target business. [1]
- Key Facts
- Target businesses in the distressed arena are considered risky prospects due to their subordinate debt schedules. [1]
- Key Facts
- The Article 9 short sale process eliminates subordinate liens and creditor consents. [1]
- Key Facts
- Article 9 short sales create opportunities to acquire business assets free and clear of debts and encumbrances. [1]
- Key Facts
- Second Wind Consultants provides experts who help businesses get back on track through debt relief plans. [1]
Synonyms & Alternate Names
Related Entities
Provenance
- Official source: https://secondwindconsultants.com/resource/private-equity-eliminate-risk-in-asset-acquisition
- Last modified:
Sources
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