Supreme Court Affirms Secured Creditors’ Right to Credit Bid at Plan Sales

On May 29, 2012, the U.S. Supreme Court  in RadLAX Gateway Hotel v. Amalgamated Bank, its first significant Chapter 11 opinion in several years, affirmed the  U.S. Court of Appeals for the Seventh Circuit’s decision in River Road Hotel Partners v.  Amalgamated Bank, prohibiting a debtor from  selling assets free and clear of liens under a plan of reorganization without permitting a secured creditor to credit bid.  RadLAX resolves a circuit split and reverses prior rulings of the U.S. Court of  Appeals for the Third and Fifth circuits endorsing proposed plan sales that did not provide secured creditors with the right to credit bid.

Please click here to read John Rapisardi’s full article on this decision, originally published on July 5, 2012 in the New York Law Journal.

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