Overview: Because Chapter 11 debtors were proceeding to sell assets free and clear
under 11 U.S.C.S. § 1129(b)(2)(A)(iii), secured lenders had no right to credit
bid at the auction sale of the collateral; thus, the district court's reversal
of the bankruptcy court's holding that the lenders had to be allowed to credit
bid was affirmed.
Counsel: For BANK OF NEW YORK TRUST COMPANY
NA, as Indenture Trustee for the Timber Notes, Appellant: Oscar Rey Rodriguez,
Toby L. Gerber, Fulbright & Jaworski, L.L.P., Dallas, TX; R Andrew Black,
Zack A. Clement, Fulbright & Jaworski, L.L.P., Houston, TX; Roy Theodore
Englert, Jr., Robbins, Russell, Englert, Orsek & Untereiner, Washington,
GORDON & CO LP, AURELIUS CAPITAL MANAGEMENT LP, AND DAVIDSON KEMPNER
CAPITAL MANAGEMENT LLC, Appellant: Isaac M. Pachulski, Jeffrey H. Davidson,
Eric D. Winston, Stutman, Treister & Glatt, Los Angeles, CA.
PACIFIC COMPANY LLC, Appellant: Eric J. Fromme, Gibson, Dunn & Crutcher,
L.L.P., Irvine, CA.
INVESTMENTS, SCOTIA REDWOOD FOUNDATION INC, Appellants: Murry B. Cohen, Akin
Gump Strauss Hauer & Feld, Houston, TX; Joseph Carl Cecere, Charles R.
Gibbs, Akin Gump Strauss Hauer & Feld, L. L. P., Dallas, TX.
OFFICIAL UNSECURED CREDITORS' COMMITTEE, Official Unsecured Creditors'
Committee Appellee, Appellee: Maxim Boris Litvak, Pachulski Stang Ziehl Young
Jones, San Francisco, CA.
MARATHON STRUCTURED FINANCE FUND LP, Appellee: Steven M. Schwartz, David Neier, Winston & Stawn, New York,
NY; John David Penn, Haynes & Boone, L.L.P., Fort Worth, TX.
MENDOCINO REDWOOD COMPANY LLC, Appellee: Allan S. Brilliant, Brian D. Hail,
Frederick Craig Schafrick, Richard Michaels Wyner, Goodwin Procter, Washington,
LUMBER CO, The Pacific Lumber Company, Appellee: Nathaniel Peter Holzer, Jordan,
Hyden, Womble, Culbreth & Holzer, Corpus Christi, TX.
STATES JUSTICE DEPARTMENT, Appellee: Bradford T. McLane, James C. Kilbourne,
Alan S. Tenenbaum, Environment & Natural Resources Division, Washington,
CALIFORNIA STATE AGENCIES, Appellee: Paul J. Pascuzzi, Felderstein Fitzgerald,
Willoughby & Pascuzzi LLP, Sacramento, CA; Michael W. Neville, Office of
the Attorney General for the State of California, San Francisco, CA.
AMERICAN SECURITIZATION FORUM, Amicus Curiae: Hugh Matthew McDonald, Thacher
Proffitt & Wood, New York, NY.
Before JONES, Chief Judge, and OWEN
and SOUTHWICK, Circuit Judges.
Opinion by: EDITH H. JONES
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Secured Creditor's Absolute Legal Right to Credit Bid under 11 U.S.C. §
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Philadelphia Newspapers, LLC, 2010 U.S. App. LEXIS 5805 (3d Cir. Mar.
Law Community Podcast featuring James Lawniczak of Calfee, Halter
& Griswold on a secured creditor's absolute legal right to credit