Recent Developments
European Union, Germany, Italy, United Kingdom, Banking, Insolvency & Restructuring, Litigation, Jones Day, Debtor, Board of directors, European Commission, European Banking Authority, ECB
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