The United States Supreme Court (Scalia, J.) held that a a Chapter 11 cramdown plan could not be confirmed over objection of secured creditor, where the plan called for the sale of collateral free and clear of the Bank’s lien, without permitting the Bank to credit bid at the sale. RadLAX Gateway Hotel LLC v. Amalgamated Bank.
As many of our clients know, this is consistent with the position taken by the majority of the Bankruptcy judges in Connecticut.
Chapter 11 Cramdown Plan Not Confirmable Because It Did Not Provide Opportunity for Bank to Credit Bid