Bank of New York Trust Co., NA v. Official Unsecured Creditors' Committee (In re Pacific Lumber Co.), 2009 U.S. App. LEXIS 21749 (Sept. 29, 2009)

LexisNexis 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, DC.

For ANGELO 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.

For SCOTIA PACIFIC COMPANY LLC, Appellant: Eric J. Fromme, Gibson, Dunn & Crutcher, L.L.P., Irvine, CA.

For CSG 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.

For OFFICIAL UNSECURED CREDITORS' COMMITTEE, Official Unsecured Creditors' Committee Appellee, Appellee: Maxim Boris Litvak, Pachulski Stang Ziehl Young Jones, San Francisco, CA.

For 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.

For MENDOCINO REDWOOD COMPANY LLC, Appellee: Allan S. Brilliant, Brian D. Hail, Frederick Craig Schafrick, Richard Michaels Wyner, Goodwin Procter, Washington, DC.

For PACIFIC LUMBER CO, The Pacific Lumber Company, Appellee: Nathaniel Peter Holzer, Jordan, Hyden, Womble, Culbreth & Holzer, Corpus Christi, TX.

For UNITED STATES JUSTICE DEPARTMENT, Appellee: Bradford T. McLane, James C. Kilbourne, Alan S. Tenenbaum, Environment & Natural Resources Division, Washington, DC.

For 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.

For THE 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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See also:

Emerging Issues Analysis:

James Lawniczak: A Secured Creditor's Absolute Legal Right to Credit Bid under 11 U.S.C. § 1129(b)(2)(A)

Paul H. Zumbro & Robert H. Trust: In re Philadelphia Newspapers, LLC, 2010 U.S. App. LEXIS 5805 (3d Cir. Mar. 22, 2010)

Podcast: LexisNexis® Bankruptcy Law Community Podcast featuring James Lawniczak of Calfee, Halter & Griswold on a secured creditor's absolute legal right to credit bid