• Seventh Circuit Upholds Secured Lenders’ Right to Credit Bid in Asset Sales Under a Chapter 11 Plan
  • July 18, 2011 | Authors: Thomas S. Kiriakos; Brian Trust
  • Law Firms: Mayer Brown LLP - Chicago Office ; Mayer Brown LLP - New York Office
  • The US Court of Appeals for the Seventh Circuit has weighed in on the question of whether a secured creditor’s ability to credit bid—to offset the amount of the creditor’s debt against the purchase price of sale assets rather than bid in cash—is a right guaranteed by statute even in “cramdown” plans of reorganization conducted under Chapter 11 of the Bankruptcy Code. On June 28, 2011, the court ruled in favor of secured creditors with its much anticipated decision in In re River Road Hotel Partners, LLC (River Road).