U.S. Supreme Court
Apr. 25, 2012
Supreme Court considers creditors' case
The U.S. Supreme Court considered Monday whether to deny secured creditors in a bankruptcy the right to bid on their collateral using credit they're already owed, which lawyers say is a key guard against assets being undervalued.
Daily Journal Staff Writer
WASHINGTON - Until recently, secured lenders could count on the chance to use the credit they're already owed to bid on collateral on sale as part of a Chapter 11 bankruptcy plan. That opportunity grants the creditors some protection from those assets being undervalued by allowing them to push up the price or keep the asset themselves, bankruptcy lawyers said.
"The oldest principal in bankr...
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