Section 363 Sale | Practical Law
Section 363 Sale
Enter to open, tab to navigate, enter to select
US Home
Global Home
NEW
Sign in
Sign in
All content
Search:
Search Westlaw
Search Tips
Advanced
Section 363 Sale
Practical Law Glossary Item 0-386-0841
(Approx. 3 pages)
Glossary
Section 363 Sale
A procedure under
Section 363(b) of the Bankruptcy Code
that allows a company to sell its assets outside of the ordinary course of business during bankruptcy proceedings.
Section 363
sales require the approval of the bankruptcy court, obtained on a motion and hearing, and are typically conducted by public auction under the supervision of the bankruptcy court. A main advantage of a
section 363
sale is the ability to obtain assets free and clear of
liens
and most liabilities attached to the assets. For more information, see
Practice Note, Buying Assets in a Section 363 Bankruptcy Sale: Overview
and
Timeline of a Section 363 Sale
.