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)

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