Everyone who has attended a commercial bankruptcy seminar or read an advance sheet in the past two years is aware of the "credit bid" controversy arising under the cram-down provisions of i i U.S.C.A. § I 129(b)(2)(A)(ii) and (iii). Under § 1129(b)(2)(A) (iii), can a plan proponent sell property without allowing the creditor secured by that property to credit bid, instead giving that creditor the proceeds of an auction sale or a private sale based on a judicial valuation of the property, on the basis that such proceeds are the "indubitable equivalent" of the creditor's claim? A circuit split on the issue has arisen among the Third, i Fifth,2 and Seventh3 Circuit Courts of Appeals. On December 12, 20 I I, the U.S. Supreme Court granted certiorari in III re River Road Hotel Partiiers, LLC,4 which may, but is certainly not guaranteed to, resolve this conflict.

To read the whole article, download the pdf here.