medium · Corporate Credit Analysis distressed

A Section 363 sale is often structured as a '363(b)' sale. What does the (b) specifically refer to in the context of the debtor's operations?

  1. The automatic stay, which halts most creditor collection actions upon petition filing.
  2. The debtor authority to obtain post-petition DIP financing under Section 364.
  3. Use, sale, or lease of property of the estate other than in the ordinary course of business.
  4. The debtor ability to reject burdensome executory contracts and leases ahead of the sale closing.

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