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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...

Chapter 11 Once Again Safe for Undersecured Lenders - Supreme Court Affirms Right to Credit Bid in RadLax

By Ben Feder The U.S. Supreme Court today in Radlax Gateway Hotel, LLC, et al. v. Amalgamated Bank unanimously upheld the right of secured creditors to credit bid their debt upon a sale of their collateral pursuant to a nonconsensual chapter 11 plan of reorganization. As described in numerous prior...

Fifth Circuit Issues Two Decisions Easing Path for Chapter 11 Debtors

Within the span of a few days, Judge Patrick Higginbotham of the Fifth Circuit released two decisions which will ease the way for chapter 11 debtors to confirm their plans. In the first decision, the Court definitively put a stake through the heart of the artificial impairment doctrine, while in ...

Sbarro and Quiznos Serve Up Prepackaged “Cramdown” Plans

by Ben Feder The chapter 11 filings this month of Sbarro and Quiznos share many similarities . Both companies are looking to survive in a difficult sector of a tough industry. Both were forced to seek bankruptcy despite recent successful efforts to reduce debt – an out-of-court restructuring...