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Sunday, June 16, 2019
11:30 – 12:30
Asset Sales in Insolvency:
A Comparative PresentationPanel Moderator:
Steven Kargman
KargmanAssociates
New York, NY
Panelists:
Fabio Weinberg Crocco
Sullivan & Cromwell
New York, USA
Thiago Braga Junqueira (Class V)
Pinheiro Neto Advogados
São Paulo, Brazil
Rosa Ma. Rojas Vertiz (Class II)
Consultant, Instituto TecnológicoAutónomo
de México
México City, México
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ASSET SALES IN INSOLVENCY: A COMPARATIVE PRESENTATION
III’s 19TH ANNUAL CONFERENCE
BARCELONA, SPAIN
NEXTGEN PANEL, JUNE 16, 2019
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M E X I C O
3
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GENERAL OVERVIEW
•Under Mexican law: 1 proceeding with 2 stages:
•Conciliation (DIP with the conciliator’s surveillance)
• Liquidation (Trustee)
Sales may be performed in any stage
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SALES DURING THE CONCILIATION STAGE
Sales on the ordinary course of business
• On assets not necessary for the ordinary course of business
• On assets that are necessary for the ordinary course of business
Sales outside the ordinary course of business
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SALES DURING LIQUIDATION
Sale as a going-concern
Public auctionAuthorization for special proceeding
Assets that require
immediate sale
Enforcement of collateral
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U S A
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Asset sales in chapter 11
Overview
Chapter 11
Ordinary Course of
Business
Outside the Ordinary
Course of Business
Reorganization
Plan
Frequent in Chapters 7 and 11 (and sometimes take place in Chapter
15)
Common PurposesTension
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Section 363 Sales
Court Approval
Bidding Procedures
and ProtectionsSale Transaction
1 2
Specific AssetsSubstantially
All Assets
Scope of SalesGood Business Reason
Highest and Best Offer
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Typical Process
10
Initial
Auction
APA or
LOI
Support
Talks
Bidding
Motion
ClosingSale
Order
Sale
Hearing
Bidding
Process
Hearing B.
Procedure
s
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B R A Z I L
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• Asset sale - major role in local bankruptcy practice
• Bankruptcy liquidation
• Court-appointed Trustee: schedule the assets, promote the sale and distribution
according to a waterfall list of priorities
• Sale to be promoted in a way that maximizes the value of the assets:
• Entire business activity individualized assets
• Public competitive process
• Acquisition free and clear of existing liabilities
• 11
Overview
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• Judicial Reorganization
• DIP type of proceeding
• No restriction on the sale under ordinary course of business (such as inventory)
• Fixed assets may be sold only if:
• Approved by Bankruptcy Court (as long as it acknowledges the advantage/benefit
of such sale); or
• If approved under the plan of reorganization
• 11
Overview
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• Judicial Reorganization (cont`)
• Free and clear sale of assets
• New concept upon enactment of the law isolated productive unit (IPU)
• Open legal concept part of the business activities
• To be provided in the plan of reorganization
• Public competitive process
• No succession of the acquirer/investor
• 11
Overview
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SELECTED ISSUES
15
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Selected Issues: A Comparative Analysis
1. Free and Clear Sales
2. Assignments and Executory Contracts
3. Appeals and Finality of Sale Orders
4. Treatment of Labor Claims
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Sunday, June 16, 2019
11:30 – 12:30
Asset Sales in Insolvency:
A Comparative PresentationPanel Moderator:
Steven Kargman
KargmanAssociates
New York, NY
Panelists:
Fabio Weinberg Crocco
Sullivan & Cromwell
New York, USA
Thiago Braga Junqueira (Class V)
Pinheiro Neto Advogados
São Paulo, Brazil
Rosa Ma. Rojas Vertiz (Class II)
Consultant, Instituto TecnológicoAutónomo
de México
México City, México