Philadelphia Newspapers' Impact On Secured Creditors
April 12, 2010, 7:39 PM EDT
Law360, New York (April 12, 2010, 7:39 PM EDT) -- The ability of secured creditors to credit bid if the collateral securing their debt were sold in a bankruptcy proceeding is often viewed as a fundamental creditor protection. A recent decision from the U.S. Court of Appeals for the Third Circuit, however, found that a secured creditor may not have a right in the context of a plan of reorganization that involves a sale of collateral.
In the Third Circuit’s decision in In re: Philadelphia Newspapers LLC, the court held that Section 1129(b)(2)(A) of the Bankruptcy...