The Importance Of In Re Philadelphia Newspapers

Law360, New York (December 2, 2009, 2:58 PM EST) -- A recent decision from the Philadelphia Newspapers LLC case addresses an important issue with respect to a debtor's ability (or inability) to extinguish a secured creditor's right to credit bid its secured claim to acquire the debtor's assets (i.e., the secured creditor's collateral) at an auction under a Chapter 11 plan of reorganization.

On Nov. 10, 2009, U.S. District Court Judge Eduardo Robreno of the Eastern District of Pennsylvania held that secured creditors do not have a statutory right to credit bid at an auction proposed...
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