On March 22, the United States Court of Appeals for the Third Circuit issued a decision that could significantly impact the rights of secured creditors to credit bid in connection with Chapter 11 asset sales under a plan of reorganization.
USA, Insolvency & Restructuring, Litigation, Katten Muchin Rosenman LLP, Bankruptcy, Credit (finance), Debtor, Collateral (finance), Debt, Dissenting opinion, Secured creditor, Leverage (finance), Secured loan, Chief executive officer, United States bankruptcy court, Third Circuit, US District Court for Eastern District of Pennsylvania
Lehman Brothers Holdings Inc. (LBHI) and its affiliated U.S. chapter 11 debtors (the “Debtors”) filed a joint plan with the Bankruptcy Court on March 15, the last day on which the Debtors who filed petitions on September 15, 2008, had the exclusive right to file a plan. As a result of the filing, the Debtors have an additional 60 days during which no other party may file a plan.
USA, Insolvency & Restructuring, Litigation, Katten Muchin Rosenman LLP, Debtor, Unsecured debt, Interest, Liquidation, Exclusive right, Secured loan, US Congress, Lehman Brothers, United States bankruptcy court