Foreclosure &
Article 9 Sales
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When a borrower defaults, secured creditors have the right to enforce their liens through foreclosure or Article 9 sales under the Uniform Commercial Code. These remedies allow creditors to sell collateral without court supervision, often recovering more value than in bankruptcy.
CMBG Advisors manages every aspect of the Article 9 process, including:
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Preparing compliant notices
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Coordinating asset marketing and sale logistics
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Facilitating private and public sales
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Managing buyer diligence and closing logistics
We ensure that each transaction is conducted with legal integrity, process transparency, and maximum value recovery.
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Case Study 1:
Industrial Equipment Lender –
Article 9 Sale
A private lender repossessed collateral from a defaulted borrower in the logistics industry. CMBG coordinated a public Article 9 sale, marketed the assets nationally, and completed a sale that exceeded appraised value by 40%. The lender recovered 95% of the outstanding loan balance and avoided the costs of litigation.
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From strategic workouts to final liquidations, CMBG Advisors is your trusted partner through every phase of business distress.
Case Study 2:
Public Sale of a Distressed Media Company​
A publicly traded digital media company ran out of cash and faced immediate shutdown. With no ability to fund a Chapter 11—estimated at $1.5–$2 million—and no viable restructuring path, the senior secured lender chose a public Article 9 sale under the UCC. CMBG Advisors was engaged to run the process.​
Capital Structure
Senior Secured Debt: $5 million
Junior Secured Debt: $3 million
Unsecured Debt: ~ $20 million
Public Shareholders: Thousands
Cash: Essentially none
Why Article 9A Chapter 11 would consume more cash than the company had and provide no pathway to reorganize:
An Article 9 sale allowed:​
• Low cost (low six figures) 30-day timeline
• Full public marketing
• Secured creditor credit bidding​
The Process
CMBG Advisors managed the legally required public sale process: notices, publication, data room, buyer outreach, diligence, Q&A, and bid management. Both secured creditors were eligible to credit bid.​
Outcome
An insider-affiliated entity designated by the senior secured lender submitted the winning bid through a credit bid.
The Sale
​• Delivered the assets to the senior lender’s affiliate
• Provided a modest carve-out to the junior lender
• Wiped out all $20 million of unsecured debt
• Eliminated all public shareholders
• Closed quickly and efficiently
Result
The secured lender obtained the business through a transparent, commercially reasonable public process. Unsecured creditors and equity holders received no recovery—exactly the outcome that a Chapter 11 liquidation would have produced, but at a fraction of the time and cost.