What a 363 sale is · Liquidation Market guides

Section 363 of the U.S. Bankruptcy Code (11 U.S.C. § 363) lets a trustee, or a Chapter 11 debtor in possession, use, sell or lease property of the bankruptcy estate. A “363 sale” is a sale of estate property outside the ordinary course of business under that section.

How it works, in outline

Notice and a hearing. A sale outside the ordinary course of business needs notice to creditors and an opportunity for a hearing; the bankruptcy court approves the sale by order.
“Free and clear”. Under § 363(f) the court can approve a sale free and clear of liens and other interests in some circumstances; those interests then usually attach to the money from the sale.
Bidding procedures. Larger 363 sales often start with an opening (“stalking horse”) bid and court-approved procedures for higher offers.
Who sells. The trustee or debtor in possession sells, under the court’s order, not the company’s former owners acting on their own.

What it means on the Market

A lot may use the words “363 sale” only when its seller is a trustee or receiver whose sale order Liquidator.news has reviewed, and the lot says it was not confirmed with the court. For the authoritative explanation see the U.S. Courts’ Chapter 11 basics, and read the case docket for any sale you rely on.