Blasco SchneiderLegal & Corporate Counsel
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Legal Advice on Asset Sales by Distressed Companies

In a financial crisis, acting early changes the options available to companies and creditors. Disposals during financial distress require scrutiny of authority, valuation and possible restrictions under insolvency law.

What to keep in mind

Examine title, creditor interests, pricing, related parties, approvals and any judicial authorization required.

An undervalued or irregular disposal can generate challenges and liability.

Distinctions often confused

An ordinary sale of surplus assets differs from a transfer that prejudices creditors.

Frequently asked questions

Can an insolvent company sell its assets?
The answer depends on its procedural status, the transaction and applicable constraints.
Should the sale price be independently supported?
For significant transactions, objective valuation evidence may be prudent.

Informational content. It is not a substitute for professional advice.