Dual-Track Chapter 11 Cases: Designing and Implementing Sale Toggles to Maximize and Test Market Value

This CLE webinar will discuss dual-track Chapter 11 strategies that simultaneously prepare for reorganization with continued operations while also marketing the distressed business for sale. The program will review the advantages of such plans for both debtors and creditors and what creditors expect to see in such plans.

A successful Chapter 11 can end in one of two ways: with operating business paying creditors or with an asset sale under Section 363. In a sale toggle, the debtor proposes a plan under which it simultaneously runs a sale process and plans for a traditional reorganization, with the option of selecting the better choice.

Toggles allow a debtor to continue operating and generating revenue while it looks for potential purchasers for some or all its assets. Advantages of toggles that are properly structured and implemented include shortening the length of the case, promoting consensus, increasing the value of the business, and lessening the viability of objections to valuation, sale, or confirmation because the proposals have been market tested.

Listen as this experienced panel of bankruptcy and restructuring attorneys explains how lenders and debtors can maximize value by using toggle strategies.