Small business need-to-know.
Excerpt: …. cramdown option provides that a secured creditor can be crammed down if its collateral is sold, “subject to section 363(k),” and its security interest attaches to the proceeds of the sale. Section 363(k) allows a secured creditor to credit bid in a sale unless the court, for cause shown, rules otherwise. The Court would not permit confirmation of a plan that contemplated a sale of collateral free and clear of a security interest where the holder of that security interest could not credit bid.
Read full article via Secured Creditor’s Right to Credit Bid in Cramdown Plans — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
