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)?

 
Possible difficulties include the presence of liens on the debtor's properties, or the opposition that other creditors would make to the disposition of the debtor's assets. With respect to claims of employees, it is a settled rule under our labor laws that bonafide sale of the business does not require the buyer to hire the employees of the previous business.