• Court Ruling Won't Allow Secured Creditors to Be Shut Out by Crafty Bid Procedures
  • October 18, 2010
  • Law Firm: Haynes Boone LLP - Dallas Office
  • On October 5, 2010, Judge Bruce Black of the United States Bankruptcy Court for the Northern District of Illinois (the “Bankruptcy Court”) issued a ruling in the River Road Hotel Partner LLC, et. al. (the “Debtors”) bankruptcy cases denying the Debtors’ bid procedures motion incident to plan confirmation. The bid procedures motion, among other things, sought the denial of secured creditor’s right to credit bid. Judge Black ultimately ruled that the Debtors may not use section 1129(b)(2)(A)(iii) to deny secured creditor’s right to credit bid, and the Debtors failed to show sufficient cause to deny credit bidding under sections 1129(b)(2)(A)(ii) and 363(k).