[stock-throwaway]

I used ChatGPT so who knows if this is true but:

> For example, in a U.S. case, Associated Grocers of Maine, Inc., the Bankruptcy Court for the District of Maine ruled that federal bankruptcy law preempted a restriction on the transfer of the debtor's stock, thereby permitting a sale of the stock free and clear of the restriction.

Makes sense though, honestly

[givemeethekeys]

If it is permissible to sell in bankruptcy, then I don't see why it wouldn't be permissible to sell to buy a new car.

[dragonwriter]

Its not “permissible”; asset sales in bankruptcy aren’t permissive, they are compulsory.

The governments power to compel sale to resolve bankruptcy trumps your counterparty’s right to limit the sale.