J. JULIUS BOLOCK
In May 2012, the United States Supreme Court cleared up confusion in the United States Circuit Court of Appeals and Bankruptcy Courts as to whether debtors were allowed to sell encumbered assets free and clear of liens without allowing secured lenders to credit-bid to pay for a potential sale of those assets. In RadLAX Gateway Hotel, LLC, , v. Amalgamated Bank, the Court concluded that RadLAX Gateway Hotel, LLC and RadLAX Gateway Deck, LLC (hereinafter referred to as “RadLAX”) could not gain confirmation of their reorganization plan that provided for the sale of their encumbered assets free and clear of liens without allowing Amalgamated Bank (hereinafter referred as “Bank”) to credit bid. Continue Reading…
