Perspective
Mar. 9, 2017
Secured creditors bidding with play money in bankruptcy sales
Credit bidding by a creditor which has a valid and enforceable mortgage, trust deed or security interest in the property being auctioned, is allowed. The creditor simply bids in all or part its debt, while other bidders bid with real money. By David M. Reeder
David M. Reeder
Valensi Rose PLCbankruptcy, business reorganization, bankruptcy litigation
1888 Century Park E Ste 1100
Los Angeles , CA 90067
Phone: (310) 277-8011
Fax: (310) 277-1706
Email: dmr@vrmlaw.com
Drake Univ Law School
David Reeder practices with the firm of Valensi Rose PLC in Century City. His practice focuses on bankruptcy cases, business reorganization and bankruptcy litigation. You can reach him at dmr@vrmlaw.com
The bankruptcy arena is fast becoming a sale barn for distressed assets. Modern Chapter 11, codified in 1979, was launched amid well-intentioned statements of about preserving jobs, preserving going concern value, and allowing troubled companies to right-the-ship and move on. The present reality is that the vast majority of companies that find their way into the Chapter 11 process opt for a sale of assets, as compared to an "old...
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