September 9, 2016
Special counsel Benjamin D. Feder’s blog post, “Secured Creditors Can Chill a Bit Following Aeropostale Ruling,” was included in Rust Omni Bankruptcy Today’s newsletter, which provides access to recent significant Chapter 11 case filings, relevant restructuring news and samples of current distressed company profiles. Originally published in Kelley Drye’s Bankruptcy Law Insights blog, the post discusses Bankruptcy Judge Sean Lane’s decision in the Chapter 11 case of Aeropostale to allow secured creditors to credit bid their debt in connection with a sale of a debtor’s assets. Mr. Feder explains that if other courts follow Judge Lane’s decision, credit bidding rights may not be limited “for cause” where a secured creditor exercises its rights in good faith, and in the absence of any malfeasance or issues regarding the extent or validity of liens.
To read the full blog post, please click here.