Rulings Shift Leverage Away from Secured Creditors

The National Law Journal published an article written by Darryl S. Laddin and Sean C. Kulka entitled, “Rulings Shift Leverage Away from Secured Creditors.” The February 15th edition discusses how many companies in financial trouble now use the bankruptcy process to sell their assets quickly, free and clear of liens. The decisions in In re Pacific Lumber Co., 584 F.3d 229 (5th Cir. 2009), and In re Philadelphia Newspapers LLC, 418 B.R. 548 (E.D. Pa. 2009), focused on the tension between sections of the Bankruptcy Code that specifically retain a lienholder’s right to credit bid and seemingly provide an independent basis for satisfying the fair-and-equitable test for a sale under a plan. The article appeared in both the online and print version (page 30) of the National Law Journal. To read the article, please click here.