A Section 363 sale is a sale of a bankrupt company's assets, often by auction, approved by the bankruptcy court under 11 U.S.C. § 363. If the assets include personally identifiable information that the company's privacy policy promised not to transfer, the court can approve the sale only on conditions, typically after a consumer privacy ombudsman reviews it.
Why it matters when licensing company data
Data sales in bankruptcy typically follow this route: bids are collected, a winning bid is chosen, and the court holds a sale hearing before the deal can close. Until the court approves it, a winning bid is not a completed sale.
See company data in business bankruptcy and the tracker of AI data licensing deals.
Source
11 U.S.C. § 363 (Cornell LII). Definition reviewed November 7, 2026 by Origin Data Partners.