If there are several interested buyers, the debtor makes his accounts with the highest bidder to serve as a stalking horse bidder. The bidder`s price is the base price of the auction and the other bidders use this bid as a reference. A sale of 363 relates to the sale of an organization`s assetsExasible assets Vulnerable assets are assets with physical form and holding value. For example, tangible capital assets. Material goods are seen and felt and can be destroyed by fires, natural disasters or accidents. In contrast, intangible assets have no physical form and consist of elements such as intellectual property, pursuant to Section 363 of the U.S. Bankruptcy Act. Sale enables debtors to meet their obligations to creditorsTopbanken in the U.S. In February 2014, the U.S. Federal Deposit Insurance Corporation had 6,799 FDIC-insured commercial banks. The country`s central bank is the Federal Reserve Bank, born from the sale of its assets and the use of the funds collected to pay its debt after the passage of the Federal Reserve Act in 1913.
A 363 sale also benefits creditors. As the main players in the bankruptcy proceedings, they can oppose or approve the debtor`s claims before the Court. For example, where the debtor seeks permission to sell assets to a buyer at a value less than the fair value or maximum bid of another bidder, the court must hear the creditor`s objections before granting the authorization or refusal.