Buying a Chapter 11 Business Question
I am approaching a multi unit that has been approved for chapter 11. Is the current owner allowed to accept an offer lower than the total debts?
Simplified example:
10 unit property with $1mil in debt. $800K is from a secured loan. $200K are from various vendors (unsecured). It was approved for Chapter 11. I want to offer $750K.
Is the current owner allowed to sell for $750K, or does the sale need to cover the entire cost of the debts? What's the process of getting approval for the sale (ie: does each debtor get a vote, does the bankruptcy judge need to approve it, etc.?)