SECTION T - SALE & TRANSFER OF ASSETS
If it was necessary to sell or transfer assets (including a business) of an insolvent corporate borrower what, if any, are the major difficulties or problems associated with that process (for example restrictions on transfer or sale of land; providing for the transfer or welfare of employees on a sale or transfer of a going concern business)?
In the case of sale or transfer of all or major portion of assets of a company, if there are shareholders of such company objecting such sale or transfer, the company must buy out the shares of such shareholders. This could be costly for the company. Also, in such case, the purchaser must succeed the employment contracts of the buyer. This could be a big management burden for the purchaser. These two elements are often quoted as major difficulties for such process.