Credit Bidding by Secured Lenders in Bankruptcy Sales
Amy A. Zuccarello was a panelist at a live web seminar entitled "Credit Bidding by Secured Lenders in Bankruptcy Sales" on March 31, 2011.
The seminar provided strategies for decision making in credit bidding to resolve the myriad of disputes among lenders and unsecured creditors, including a discussion of the Philadelphia Newspapers case and overcoming legal challenges to the lender's right to credit bid.
Ms. Zuccarello and her fellow panelists offered their perspectives and guidance on these and other critical questions:
- What issues arise when the lender bids for a basket of assets that includes assets of value in addition to the lender's collateral?
- What rights do minority lenders in a syndicated loan facility have to block the agent from credit bidding?
- How does a lender's right to credit bid differ under a Section 363 sale versus a sale under a plan of reorganization?
- What are the trends in enforcing intercreditor agreements in bankruptcy?