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Emory Bankruptcy Developments Journal

Authors

Merriam Mikhail

Abstract

Secured creditors have generally enjoyed the opportunity to credit bid at the public auction of their collateral during bankruptcy proceedings. Recently, however, the Third and Fifth Circuits have authorized unprecedented cramdown plans that allow sales of collateral free and clear of liens to be authorized under § 1129(b)(2)(A)(iii) of the Bankruptcy Code. Consequently, they have permitted secured creditors' once powerful credit bidding rights, granted in § 1129(b)(2)(A)(ii), to be circumvented. This Comment supports the plausible catch-all reading of § 1129(b)(2)(A) ignored by the majorities in Philadelphia Newspapers and Pacific Lumber.

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