Resolving The Circuit Split On Credit Bidding
Law360, New York (May 30, 2012, 3:19 PM ET) -- 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...
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