Table of Contents

• Jurisdiction: United States

Chapter I

Introduction ...................................................................................................... 1

Chapter II

Credit Bidding Generally ................................................................................ 7

A. The Policy Behind Credit Bidding...................................................................................8

B. In re Delphi Corporation: An Illustration of the Value of Credit Bidding.................9

C. Credit Bidding Under Pre-Code Law .......................................................................... 12

1. The Right to Credit Bid Under State Law................................................................12

2. The Supreme Court's Decision in Radford: Credit Bidding as a Property Right.....................................................................................................14

3. Credit Bidding Under the Bankruptcy Act ............................................................. 15

Chapter III

Credit Bidding in § 363 Sales in Bankruptcy..............................................17

A. § 363 Sales Generally......................................................................................................18

B. Credit Bidding in § 363 Sales.........................................................................................21

C. "Cause" to Deny a Credit Bid Under § 363(k) ............................................................25

1. When There Is a Dispute as to the Validity or Amount of a Creditor's Claim or Lien..................................................................................... 26

2. When Improper or Inequitable Conduct Is Present ............................................. 31

3. When One or More Parties Fail to Comply with Court-Ordered Procedures....36

4. When Allowing Credit Bidding Will Likely Chill Bidding...................................38

5. The Loan-to-Own Conundrum and Increased Judicial Scrutiny with Respect to Credit Bidding................................................................. 44

Chapter IV

Credit Bidding Under a Plan ........................................................................55

A. Requirements for Confirmation of a Plan....................................................................56

B. Secured Creditor Cramdown: §...