Sec. 5. Sales of property in bankruptcy proceedings
416 words·~2 min read·
/bill/116/s/2737/is/section-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 363 of title 11, United States Code, is amended— in subsection (b)(1), in the matter preceding subparagraph (A), by striking The trustee and inserting Subject to subsection (q), the trustee ; in subsection (c)(1), by striking If the business and inserting Subject to subsection (q), if the business ; and by adding at the end the following: Subject to paragraphs
(2)and (3), the trustee may not sell property of the estate under subsection
(b)or
(c)unless the trustee is able to demonstrate that— the sale complies with the provisions of this title; the sale has been proposed in good faith and not by any means forbidden by the law; any payment made for services or for costs and expenses in or in connection with the sale is reasonable; if, with respect to the case, there is any fee payable under section 1930 of title 28, the proceeds of the sale will be used to pay that fee; and with respect to each class of claims or interests— such class has accepted the sale; or such class is not impaired by the sale. The trustee, on request of the proponent of the sale, may sell property of the estate under subsection
(b)or
(c)if— all of the applicable requirements of paragraph
(1)other than subparagraph
(E)are met with respect to a sale of property; and the sale does not discriminate unfairly, and is fair and equitable, with respect to each class of claims or interests that is impaired under, and has not accepted, the sale. The trustee may not sell substantially all of the property of the estate under subsection
(b)or
(c)during the 60-day period beginning on the date of the filing of the petition unless the court determines that— there is a high likelihood that the value of the property of the estate will decrease significantly during that period; and the requirements under paragraph
(1)have been satisfied with respect to each sale that would contribute to substantially all of the property of the estate being sold. . Section 363(b) of title 11, United States Code, is amended by adding at the end the following: In approving a sale under this subsection, the court shall consider the extent to which a bidder has offered to maintain existing jobs, preserve terms and conditions of employment, and assume or match pension and retiree health benefit obligations in determining whether an offer constitutes the highest or best offer for such property. .