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...
Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.