Seventh Circuit disagrees with Philadelphia Newspapers and finds that credit bidding required for asset sales in bankruptcy plans

When entering into secured transactions, most secured lenders long assumed that, even in a bankruptcy, their borrowers would not be able to sell encumbered assets free and clear of the lenders’ liens without the lenders’ consent or, without at least providing the lenders the opportunity to bid their secured debt at an auction.

Filed under:
USA, Insolvency & Restructuring, Litigation, Latham & Watkins LLP, Bankruptcy, Credit (finance), Debtor, Interest, Limited liability company, Secured creditor, Secured loan, US Congress, Supreme Court of the United States, United States bankruptcy court, Third Circuit, Seventh Circuit
Authors:
Josef S. Athanas , Caroline A. Reckler , Matthew L. Warren , Andrew J. Mellen
Location:
USA
Firm:
Latham & Watkins LLP