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In re Philadelphia Newspapers, LLC, 2010 U.S. App. LEXIS 5805 (3d Cir. Mar. 22, 2010)

Authors from Cravath, Swaine & Moore consider the Third Circuit's decision in In re Philadelphia Newspapers. This decision, along with the decision in In re Pacific Lumber, marks a significant departure from long-held expectations of secured creditors and could endanger protections traditionally...

Highlights from the National Conference of Bankruptcy Judges Day 1

I am attending the National Conference of Bankruptcy Judges meeting in New Orleans this week. Here are some highlights. Lawrence P. King Award The Commercial Law League of America presented the Lawrence P. King Award to Judge Burton Lifland from the Southern District of New York. In his acceptance...

Take Me to the River (Road): The Seventh Circuit Prepares to Weigh In On Credit Bidding

The U.S. Court of Appeals for the Seventh Circuit has taken under advisement the latest case involving the now contentious issue of credit bidding. Judge Bruce Black of the United States Bankruptcy Court for the Northern District of Illinois last year refused to permit the debtors in In re River...

Secured Lenders 101 - A Basic Review with Ancela Nastasi

On this edition, Ancela Nastasi, partner in the Restructuring and Bankruptcy Group at Richards Kibbe & Orbe LLP, explains "secured lender," intercreditor agreements, credit bidding, loan to own strategies and cram-down. Copyright© 2010 LexisNexis, a division of Reed Elsevier Inc. All...

Cadwalader Restructuring Review, June 2010

Philly News: Third Circuit Upholds Bidding Procedures Denying Lenders Opportunity to Credit Bid By Douglas S. Mintz, Leslie Chervokas and Mark Arinci The Third Circuit Court of Appeals recently affirmed the District Court's ruling in In re Philadelphia Newspapers, LLC . The Court allowed Philadelphia...

So This Is Why Judges Bother to Write Dissenting Opinions -- Seventh Circuit Decision on Credit Bidding Vindicates Judge Ambro's Philadelphia Newspapers Dissent

Critics of last year's decision on credit bidding by the Third Circuit Court of Appeals in the Philadelphia Newspapers chapter 11 case welcomed the Seventh Circuit's recent unanimous opinion in River Road Hotel Partners LLC . The Seventh Circuit expressly adopted the Judge Tom Ambro's...

River Rd. Hotel Partners, LLC v. Amalgamated Bank, 2011 U.S. App. LEXIS 13131 (June 28, 2011)

LexisNexis Overview: Bankruptcy court did not err in denying confirmation of Chapter 11 debtors' plans on the basis that they did not comply with the specific requirements of 11 U.S.C.S. § 1129(b)(2)(A)(ii) because debtors could not sell encumbered assets free and clear of liens without...

A Secured Creditor's Absolute Legal Right to Credit Bid (Part 2)

James Lawniczak considers the circuit split over whether a secured creditor has an absolute right to credit bid when its collateral is being sold through a chapter 11 reorganization plan. Looking in detail at the Seventh Circuit's decision in River Road Hotel Partners, which held that Bankruptcy...

Ancela Nastasi Discusses Credit Bidding and In re River Road HotelPartners, LLC

On this edition, Ancela R. Nastasi of Richards Kibbe & Orbe LLP in New York discusses the background and holding of the 7th Circuit U.S. Court of Appeals in In re River Road Hotel Partners, LLC . She analyzes the implications of the court's ruling upholding the right of a secured lender to credit...

Does a Single "Or" Excommunicate Congressional Intent From the Bankruptcy Code? Supreme Court to Resolve Circuit Split on Credit Bidding

The U.S. Supreme Court will rule this term in RadLAX Gateway Hotel Inc. v. Amalgamated Bank on whether the Bankruptcy Code permits a debtor in a chapter 11 case to sell encumbered assets without providing the secured lender an opportunity to credit bid its debt. Determination of this question will...

U.S. Supreme Court: U.S. Solicitor General May Take Part In RadLAX Arguments

WASHINGTON, D.C. - The U.S. Supreme Court on April 2 granted the U.S. solicitor general leave to participate in oral arguments in a case in which a creditor bank argues that the Bankruptcy Code precludes confirmation of a hotel chain's Chapter 11 plan that proposes to sell collateral free and...

A Chicago Bankruptcy Case Lands at the US Supreme Court: The RadLAX Oral Argument - Part I

Chicago bankruptcy professionals descended on the US Supreme Court to catch the final chapter in the RadLAX bankruptcy saga, one that had a remarkably swift journey to the highest court of the land. The case started as the neglected stepchild of Amalgamated Bank, the trustee of the deeply undersecured...

RadLAX Oral Argument - Part II: What's Indubitably Bothering the Supreme Court Justices Equivalently

As I noted three years ago in my " What's Bothering Ruthie ? " post on Justice Ginsburg's one-liner that stopped the Chrysler sale dead in its tracks, today's Supreme Court oral argument in RadLAX Gateway Hotel, LLC v. Amalgamated Bank ( transcript ) left no doubt about what's...

Supreme Court Indubitably Grapples With Credit Bidding

The Supreme Court heard arguments yesterday in RadLAX Gateway Hotel over whether the Bankruptcy Code permits a debtor in a chapter 11 case to sell encumbered assets without providing its secured lenders an opportunity to credit bid their debt. As previously described on this site , a circuit...

High Court: Debtor May Not Sell Property Free Of Lien; Must Allow Credit-Bidding

WASHINGTON, D.C. - The U.S.Supreme Court today affirmed that a debtor company may not obtain confirmation of a nonconsensual Chapter 11 plan that permits the debtor to sell collateral free and clear of a creditor bank's lien without permitting the bank to credit-bid at the sale ( RadLAX Gateway...

RadLAX Gateway Hotel, LLC v. Amalgamated Bank, 2012 U.S. LEXIS 3944 (May 29, 2012)

LexisNexis Core Overview: Sales free of liens under 11 U.S.C.S. § 1129(b)(2)(A) [ an annotated version of this statute is available to lexis.com subscribers ] had to satisfy § 1129(b)(2)(A)(ii)'s requirements, not those of both § 1129(b)(2)(A)(ii) and (iii), thus, the debtors could...

LexisNexis® Bankruptcy Law Community Podcast: Kenneth Klee and Ancela Nastasi on the U.S. Supreme Court's decision in RadLAX Gateway Hotel LLC v. Amalgamated Bank.

On this edition, Ancela Nastasi of Fulbright & Jaworski and Kenneth Klee of Klee, Tuchin, Bogdanoff & Stern discuss the May 29, 2012 U.S. Supreme Court decision in RadLAX Gateway Hotel LLC v. Amalgamated Bank in which the court held that a secured creditor has a right to credit bid its secured...

Loan to Moan? Judge Limits Right to Credit Bid in Chapter 11 Case of Free Lance-Star Publishing Co.

by Ben Feder A few months ago, a ruling in the Chapter 11 case of Fisker Automotive narrowed a secured creditor’s right to credit bid its debt in connection with a sale of the debtor’s assets. The decision surprised many observers and resurrected uncertainty about a debtor’s ability...

None Too Appealing – District Court Turns Aside Free Lance-Star Publishing Credit Bid Lender

by Ben Feder A recent ruling in the Chapter 11 case of Free Lance-Star Publishing limited the credit bidding rights of a secured creditor . The ruling has called into question the ability of the holder of secured debt to utilize such debt to acquire companies on a going concern basis in bankruptcy...