Section 363 Sale
A court-approved sale of a bankrupt company's assets under Section 363 of the US Bankruptcy Code, typically "free and clear" of most existing liens and claims (which attach to the sale proceeds instead). It lets a buyer acquire a business or specific assets faster and cleaner than waiting for a full reorganization plan, and it lets the estate raise cash for creditors. For distressed investors it is a key entry and exit route: a stalking-horse bidder sets a floor price, and competing bids can follow at a court-supervised auction.
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