Sears bankruptcy case shows change disclosure is key

By Frank Grese and Reginald Sainvil (June 23, 2022, 5:52 p.m. EDT) — The U.S. District Court for the Southern District of New York recently upheld a bankruptcy court ruling that demonstrates the importance of meaningful disclosure to a bankruptcy court and to the parties for the benefit of any material modification of an asset purchase agreement in the event of bankruptcy.[1]

Although the district court focused on the main contractual dispute at issue, the underlying bankruptcy court decision highlighted the importance of meaningful disclosure of changes to an asset purchase agreement , as the historical context may be a factor if a dispute arises later between a debtor and a buyer.[2]

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Janet E. Fishburn