Douglas Gooding and John Ventola on Credit Bidding Disputes

View "Pendulum Swings Back Toward Lenders in Credit Bidding Disputes"

Douglas Gooding and John Ventola, partners in the Firm’s Finance & Restructuring Group were recently published in the Journal of Corporate Renewal for the article titled, "Pendulum Swings Back Toward Lenders in Credit Bidding Disputes." The article discusses whether secured lenders will be permitted by U.S. Bankruptcy Courts to credit bid only a fraction of secured claims in asset sales under Section 363 of the U.S. Bankruptcy Code.

From the article:

"The Aéropostale case indicates that the specter of a chilling effect is insufficient on its own to limit secured lenders’ credit bid rights. As a result, lenders may continue to exercise their credit bidding rights in full, which may continue to produce successful outcomes for debtors out of bankruptcy."