Partner Fredric Sosnick (New York-Bankruptcy & Reorganization) and associate Craig Culbert (New York-Bankruptcy & Reorganization) published an article entitled "Recent Cases Reveal Trend Towards Limiting Secured Creditors' Right to Credit Bid in Connection with Sales Under a Debtor's Plan of Reorganisation" in Executive View Media's Corporate Bankruptcy & Restructuring 2010 Digital Guide.

The ability of secured creditors to credit bid in the event that the collateral securing their debt were sold in a bankruptcy proceeding often is viewed as a fundamental creditor protection. Two recent decisions - from the Court of Appeals for the Fifth Circuit and one from a district court within the Third Circuit - have found that a secured creditor may not have such right in the context of a plan of reorganisation that involves a sale of collateral. In both the Fifth Circuit's decision in In re Pacific Lumber Co and the District Court for the Eastern District of Pennsylvania's decision in In re Philadelphia Newspapers, LLC the courts held that a plan of reorganisation involving the sale of the collateral securing the secured creditor's loan could be crammed down on the secured creditor as long as the plan provided the secured creditor with the "indubitable equivalent" of the value of its collateral from the sales proceeds.

View Executive View Media's Corporate Bankruptcy & Restructuring 2010 Digital Guide