Credit-Bidding Should Be Allowed in a Bankruptcy Sale According to Latest ABI Quick Poll
Alexandria, Va. — An overwhelming majority of respondents in a recent ABI Quick Poll think that credit bidding should be allowed in a bankruptcy sale. Seventy-eight percent of respondents (58 percent “disagreed strongly” and 20 percent “somewhat”) to the poll question of “Credit-bidding should not be allowed in a bankruptcy sale.” Eighteen percent thought that credit-bidding should not be allowed (8 percent “strongly” agreeing with the poll question and 10 percent “somewhat” agreeing). Three percent did not know/had no opinion on the poll. Credit-bidding is a process in bankruptcy sales used by secured creditors to bid using the amount of debt that they are owed, rather than using cash. The right to credit-bid gives secured creditors more control over the sale of collateral, which normally happens in Bankruptcy Code § 363 sales. In the case of RadLAX Gateway Hotel, LLC v. Amalgamated Bank, the Supreme Court in 2012 held that debtors must permit credit-bidding when selling an asset free and clear of a secured creditor’s lien under a chapter 11 plan. ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://news.abi.org/quick-polls/archive to access the results of previous ABI Quick Polls. ### ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes over 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
Wednesday, August 6, 2014