Law360, New York (May 30, 2012, 3:19 PM EDT) -- On May 29, 2012, the United States Supreme Court resolved a split among the federal courts of appeals on an important bankruptcy issue. In a unanimous opinion in RadLAX Gateway Hotel LLC v. Amalgamated Bank,[1] the court held that a Chapter 11 plan of reorganization that provides for a sale of a secured creditor's collateral free and clear of liens must afford that secured creditor the right to credit bid. The decision is significant because it allows a secured creditor to protect the benefit of its bargain to either be repaid in full or take possession of its collateral, by preventing the debtor from stripping the creditor's lien for an amount at less than the creditor thinks the property is worth....
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