Credit Bids And Cramdown Provisions Court Rules In Radlax
Secured creditors had a big win in the Supreme Court this week. The Court ruled 8-0 Tuesday that debtors may not obtain confirmation of a Chapter 11 cramdown plan that provides for the sale of collateral free and clear of the bank’s lien, but does not permit the bank to credit-bid at the sale. In the opinion, Justice Antonin Scalia outlined the Bankruptcy Code’s three alternative standards for determining if a Chapter 11 plan is “fair and equitable” to an objecting class of secured creditors....