NEW ABI PUBLICATION TACKLES FULL SPECTRUM OF ISSUES SURROUNDING CREDIT BIDDING IN BANKRUPTCY

July 9, 2015, Alexandria, Va. — American Bankruptcy Institute's Credit Bidding in Bankruptcy Sales: A Guide for Lenders, Creditors, and Distressed-Debt Investors examines issues surrounding credit bidding in bankruptcy. Credit bidding — in which the secured creditor can credit bid the amount of its allowed claim in any sale of its collateral by its debtor — is acknowledged as being an important part of the secured creditor’s bundle of rights, even though some experts argue that the practice can chill bidding or otherwise prevent the debtor from maximizing the value of its assets. Credit Bidding in Bankruptcy Sales details how the courts have handled this debate, with reference to specific cases such as Fisker and Free Lance-Star, and also provides practitioners with the information that they need to know when reviewing credit agreements, debtor-in-possession financing orders and sale orders related to credit bidding.

Authors Paul R. Hage of Jaffe Raitt Heuer & Weiss (Southfield, Mich.), Brian M. Resnick of Davis Polk & Wardwell LLP (New York) and Brent Weisenberg of Ballard Spahr LLP (New York) cover when, and to what extent, credit bidding is allowed, as well as how a credit bid might be submitted in a bankruptcy sale, and they provide an in-depth analysis of how credit bidding affects professional fees. Listen to an ABI Podcast featuring Hage discussing the book and issues surrounding credit bidding in bankruptcy.

Credit Bidding in Bankruptcy Sales: A Guide for Lenders, Creditors, and Distressed-Debt Investors is currently available for purchase in the ABI Bookstore. Members of the press looking to preview the book or to arrange an interview with the authors should contact ABI Public Affairs Manager John Hartgen at 703-894-5935 or [email protected].

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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 more than 12,000 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.abi.org/calendar-of-events.