RadLAX Gateway Hotel, LLC v. Amalgamated Bank - Post-Decision SCOTUScast
SCOTUScast 06-08-12 featuring Thomas Plank
On May 29, 2012, the Supreme Court announced its decision in RadLAX Gateway Hotel, LLC v. Amalgamated Bank. This case involved Chapter 11 of the Bankruptcy Code, which provides for corporate reorganizations. The question here was whether a Chapter 11 bankruptcy plan could be confirmed over the objection of secured creditor when the plan proposed to sell collateral free and clear of the creditor’s lien without allowing the creditor to “credit-bid” on the collateral at the sale; meaning the creditor could not offset the purchase price of the collateral by the value of the creditor’s claim on it.
In an opinion delivered by Justice Scalia, the Court held by a vote of 8-0 that debtors may not obtain confirmation of Chapter 11 plan that provides for the sale of collateral free and clear of a creditor’s lien without allowing the creditor to credit-bid at the sale. Justice Kennedy took no part in the decision of the case.
To discuss the case, we have Thomas Plank, who is the Joel A. Katz Distinguished Professor of Law at the University of Tennessee College of Law.
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