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Commonly in a Chapter 11 bankruptcy proceeding, the parties may determine that the best course for the creditors would be a Court-sponsored sale of some or all of the entity's assets. BLG 5 covers these types of sales. From the perspective of the debtor, such a sale is accounted for consistently with any other divestiture of its operations, even though the sale is supervised and approved by the Court and can involve a substantial portion of the reporting entity's net assets.
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