Secured Lenders’ Rights to Credit Bid: Indubitably Not

31 March 2010
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This client memo discusses a much anticipated decision by the Third Circuit in In re Philadelphia Newspapers, LLC holding that a plan of reorganization that prohibits credit bidding may be confirmed under Section 1129(b)(2)(A)(iii) of the Bankruptcy Code so long as it provides secured creditors with the “indubitable equivalent” of their secured claims.