Fisker Threatens To Undermine Distressed-Debt Investing
January 31, 2014, 12:43 PM EST
Law360, New York (January 31, 2014, 12:43 PM EST) -- In 2012, the U.S. Supreme Court unanimously shattered the judicial uncertainty surrounding the ability of a secured claimholder to “credit bid” its claim at a bankruptcy court sale of its collateral under a Chapter 11 plan in Radlax Gateway Hotel LLC v. Amalgamated Bank, 132 S.Ct. 2065 (2012).
There, no one argued the secured lender could be denied, for cause under Bankruptcy Code Section 363(k), the right to credit bid. The only question was whether the right to credit bid applied to a sale under a...