Law Firm Ruden McClosky Makes Bankruptcy History With Sale
December 6, 2011 -- Dow Jones Daily Bankruptcy Review
Paul Rubin is quoted in this account of a struggling, but operating, Florida law firm that sold itself to another firm in a bankruptcy context -- apparently the first-ever sale of an operating firm under Chapter 11 protection. The firm sold itself in an auction to the highest bidder, and Paul says so-called 363 sales can make sense because they tend to enable the sale of businesses as going concerns, which, in turn, preserves jobs and benefits creditors. Paul notes that buying and selling assets in a bankruptcy setting can give comfort to buyer and seller because 363 sales come with a judicial finding that there has been a reasonable opportunity to market the assets and that the terms of the sale are fair and reasonable. That helps prevent later claims by disgruntled creditors.