PT - JOURNAL ARTICLE AU - Daniel M. Glosband TI - Pathology of Section 363 Sales AID - 10.3905/jpe.2004.434767 DP - 2004 Aug 31 TA - The Journal of Private Equity PG - 60--63 VI - 7 IP - 4 4099 - https://pm-research.com/content/7/4/60.short 4100 - https://pm-research.com/content/7/4/60.full AB - Section 363 sales have shouldered past competing methods for the disposition of financially distressed businesses. Traditional stock or asset acquisitions, secured party sales, sales by assignees for the benefit of creditors and bankruptcy trustees and sales under chapter 11 plans of reorganization have taken a back seat to sales by chapter 11 debtors under Section 363 of the United States Bankruptcy Code (“Section 363”). Recent transactions are noted by private equity funds acting directly or as sponsors of strategic portfolio companies. The term “363 sale” has thus entered the M&A vernacular robed in its virtues but concealing its difficulties. This article reviews both the good and bad sides of these deals.