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Secured Creditors' Credit Bid Rights Under Cramdown Plan

On June 28, 2011, in a decision of great significance to secured creditors, the U.S. Court of Appeals for the Seventh Circuit held that secured creditors have a statutory right to credit bid their debt at an asset sale conducted under a so-called "cramdown" plan. This decision is directly at odds with recent decisions in the Third and Fifth Circuits regarding a secured creditor's right to credit bid under a plan.

19 minute read November 28, 2011 at 01:24 PM
By
Lawrence V. Gelber, James T. Bentley and Mike Paek
Secured Creditors' Credit Bid Rights Under Cramdown Plan

On June 28, 2011, in a decision of great significance to secured creditors, the U.S. Court of Appeals for the Seventh Circuit held that secured creditors have a statutory right to credit bid their debt at an asset sale conducted under a so-called “cramdown” plan.

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