The Supreme Court has granted cert. in RadLAX Gateway Hotel, LLC, a case involving the right to credit bid when a sale is done as part of a chapter 11 plan. The Code clearly allows credit bidding in 363 sales, but the courts had split on the issue in the plan context.
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One response to “We Get a Chapter 11 Case!”
I’m glad your Dealbook prediction turned out to be wrong and the court granted cert. I too want to see the 7th Circuit affirmed. The rational of the 3rd and 5th Circuits not only undercuts 363(k) credit bidding protections, but it also would enable a debtor to avoid the consequences of an 1111(b) election by a major secured creditor. Both of these are protections against undervaluations of collateral.