Secured Creditors Vindicated: U.S. Supreme Court Affirms Credit Bid Rights of Secured Creditors

Sullivan & Cromwell LLP - June 13, 2012

On May 29, 2012, the U.S. Supreme Court unanimously held in RadLAX Gateway Hotel, LLC v. Amalgamated Bank that a plan of reorganization that contemplates a sale of assets subject to validly perfected security interests cannot be “crammed down” over the objection of secured creditors who have not been afforded the right to credit bid for the assets.