A recent order from the United States Bankruptcy Court for the Southern District of Texas allowed a debtor to reopen a completed auction based on a significantly more attractive, but untimely, bid.
A recent order from the United States Bankruptcy Court for the Southern District of Texas (the “Court”) allowed a debtor to reopen a completed auction based on a significantly more.
The chapter 11 case filed by Limetree Bay Services and five affiliates is one example of auction disorder actually bringing increased creditor recoveries. Bankruptcy professionals, distressed companies, and acquirers of distressed assets can learn valuable lessons from this.
One of the bidders for the bankrupt Limetree Bay refinery objected to the winning bid in court this week, arguing the new company, which said it wants to restart the Caribbean facility, really wants to liquidate its assets.