Can a company in bankruptcy donate a building to a 501c3 non profit group?
tx_twister_chaser asked:
There is a building for sale, would fit our needs perfectly but the company is in bankruptcy. Would that mean that there is a hold on the property and they HAVE to sell it?
There is a building for sale, would fit our needs perfectly but the company is in bankruptcy. Would that mean that there is a hold on the property and they HAVE to sell it?
Tags: Bankruptcy, Non Profit, Profit Group
April 24th, 2010 at 1:38 pm
When a company is in bankruptcy, no transfer of assets can occur without the BK Trustee’s permission.
Therefore, unless the property has no value, the building will likely be sold and the proceeds distributed to the creditors.
April 26th, 2010 at 3:05 am
1-you cannot donate a building unless you own it free and clear of any mortgages or lines and if that is the case, the bankruptcy court is NOT going to let them give away a valuable asset - that makes no sense
April 29th, 2010 at 8:38 am
Awesome idea. The bankruptcy already indicates they’ve got a history of poor financial choices. Why not add “give away significant assets” to the list. Too bad the bk judge would need to approve. How’s about mailing the company and the judge a lowball offer.
They’d only let it go for free if it meant removing a liability from their balance sheet. This wouldn’t by chance be a leaky gas station would it?