Another important tool is the Section 363 sale. In LCI Holding, the Third Circuit gave the debtor, an owner of long-term acute care hospitals, the flexibility to use Section 363 sales or settlements outside of the plan context. In LCI, a purchase agreement provided for the secured creditors to allocate payment for the debtor's legal and accounting fees to move the deal forward. The secured creditor effectively funded the administrative expenses in the bankruptcy.

Because it had allocated funds under a separate escrow agreement, isolated from the actual credit bid proceeds, the court allowed this. Holman noted: "This is a tremendous workaround of what would otherwise be a very complicated, very expensive chapter 11 confirmation plan process. A variety of parties managed to settle their respective interests without having to confirm a plan."