The Bottom Line:
USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Credit (finance), Secured loan, United States bankruptcy court, Seventh Circuit
The Bottom Line:
USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Employee Retirement Income Security Act 1974 (USA), Debtor, Unsecured debt, Trade union, Consideration, Liability (financial accounting), Defined benefit pension plan, Title 11 of the US Code, United States bankruptcy court, Third Circuit, Sixth Circuit, Bankruptcy Appellate Panel
The U.S. Court of Appeals for the Third Circuit, in In re Philadelphia Newspapers LLC,1 has ruled that secured creditors do not have a right, as a matter of law, to credit bid their claims when their collateral is sold under a plan of reorganization. The Third Circuit held that secured creditors may be barred from credit bidding where a debtor's reorganization plan provides secured creditors with the "indubitable equivalent" of their secured interest in the assets. The court's ruling follows a similar ruling last year by the U.S.
USA, Insolvency & Restructuring, Litigation, Duane Morris LLP, Credit (finance), Debtor, Collateral (finance), Interest, Limited liability company, Liquidation, Fair market value, Dissenting opinion, Secured creditor, Secured loan, United States bankruptcy court, Fifth Circuit, Third Circuit