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Updated over 3 years ago,

User Stats

11
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0
Votes
Kenneth Woodall
  • Real Estate Investor
  • Tampa, Fl
0
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11
Posts

Buying a Chapter 11 Business Question

Kenneth Woodall
  • Real Estate Investor
  • Tampa, Fl
Posted

I am approaching a multi unit that has been approved for chapter 11. Is the current owner allowed to accept an offer lower than the total debts?

Simplified example:

10 unit property with $1mil in debt. $800K is from a secured loan. $200K are from various vendors (unsecured). It was approved for Chapter 11. I want to offer $750K. 


Is the current owner allowed to sell for $750K, or does the sale need to cover the entire cost of the debts? What's the process of getting approval for the sale (ie: does each debtor get a vote, does the bankruptcy judge need to approve it, etc.?)

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