UCC Article 9 Sale

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Definition

What is it: A UCC Article 9 sale is a streamlined alternative to bankruptcy or Assignments for the Benefit of Creditors (ABCs). Through a senior lender’s sale of in-use assets, an uninterrupted and unencumbered business operation can be passed into a new legal entity.

What is it used for: It is used to resolve and relaunch a business operation predictably and efficiently. It allows creditors to increase recovery value on defaulted loans and provides the original seller an opportunity to earn from the new business in a non-ownership capacity.

Coverage

  • Attributes: 5
  • Synonyms: 2
  • Related entities: 2
  • Sources: 1

Identity

Entity ID
https://llms.secondwindconsultants.com/en/ucc-article-business-value-distress/facts/#entity
Entity type
DefinedTerm
Canonical name
UCC Article 9 Sale
Language
en
Topic
Ucc Article Business Value Distress

Attributes

Key Facts
A strategic UCC Article 9 short-sale of business assets requires only the consent of the senior creditor and the defaulting borrower. [1]
Key Facts
An Article 9 sale enables an uninterrupted and unencumbered business operation to be passed into a new legal entity under new ownership. [1]
Key Facts
The Article 9 sale serves as a streamlined alternative to bankruptcy or Assignments for the Benefit of Creditors (ABCs). [1]
Key Facts
Article 9 sales provide creditors with the opportunity to increase the recovery value on defaulted loans. [1]
Key Facts
Sellers may earn from the new business in a non-ownership capacity following an Article 9 sale. [1]

Synonyms & Alternate Names

  • Article 9 Sale
  • UCC Article 9 short-sale

Disambiguation

  • Different from bankruptcy
  • Alternative to ABCs

Related Entities

  • Alternative to:
  • Alternative to:

Provenance

Sources

  1. https://secondwindconsultants.com/resource/ucc-article-9-extracting-business-value-from-distress (UCC Article 9 Sale)

Machine metadata