Nursing Home Sale Approved Despite Right of First Refusal in Partnership Agreement

Finance and restructuring partner Andrew Kassner and counsel Joseph Argentina co-authored an article for The Legal Intelligencer titled “Nursing Home Sale Approved Despite Right of First Refusal in Partnership Agreement.”

The article examines a recent decision from the U.S. Bankruptcy Court of the Northern District of Texas, In re Genesis Healthcare, in which the court held that the debtor could sell its general and limited interests under Sections 363 and 365 of the Bankruptcy Code despite a partnership agreement provision granting the non-debtor partner a right of first refusal to purchase the debtor’s partnership interests and assume and assign the management agreement to the buyer.

Kassner and Argentina explain how the case reinforces the expansive authority a debtor has to sell assets, including partnership interests, under the Bankruptcy Code.