River Road Must Allow Lenders' Credit Bid: 7th Circ.

Law360, New York (June 28, 2011, 6:11 PM EDT) -- The Seventh Circuit on Tuesday affirmed a bankruptcy court's decision that rejected River Road Hotel Partners LLC's proposed asset sale, ruling that the bidding procedures did not offer secured lenders the protections required under the bankruptcy code.

The Seventh Circuit said the proposed auctions lacked a "crucial check against undervaluation" by failing to allow secured lenders to credit bid and could not be approved under the Bankruptcy Code, as the debtors — River Road Hotel Partners, RadLAX Gateway Hotel LLC and related entities — had argued....
To view the full article, register now.