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Del. Ruling Shows Tension Between 363 Sale And Labor Law

By David Hillman, Charles Dale and Scott Faust (December 13, 2023, 5:14 PM EST) -- Navigating the Bankruptcy Code can present many traps for unsuspecting debtors, creditors or asset buyers. The U.S. District Court for the District of Delaware recently reminded bankruptcy participants of an often overlooked pitfall involving the collision between (1) an unstayed bankruptcy sale order authorizing an asset sale free and clear of successor liability, and (2) federal labor law imposing successor liability on the buyer.[1]...

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