Nothing is more frustrating to a creditor collecting on a promissory note than having the defendant object to the authenticity and/or admissibility of the note—particularly, in response to a creditor’s summary-judgment motion.
Committees
On June 28, 2011, the U.S. Court of Appeals for the Seventh Circuit affirmed the U.S. Bankruptcy Court of the Northern District of Illinois’ decision and held that a secured creditor has a statutory right to credit-bid its debt in the sale of assets proposed under a nonconsensual reorganization plan pursuant to § 1129(b)(2)(A) of the Bankruptcy Code.
Picture the typical bankruptcy case. The decision is made to sell the assets, and debtor’s counsel drafts bidding procedures to create a framework to generate the highest and best bid for a particular estate asset. The committee and the secured creditors make comments and the court approves the bidding procedures.
Asset sales of substantially all of the assets of a corporate debtor early in a chapter 11 case have become routine.
Asset sales of substantially all of the assets of a corporate debtor early in a chapter 11 case have become routine. Orders approving motions to approve streamlined procedures for sales of de minimis assets in large chapter 11 cases have also become routine. In re Borders Group, Inc.
Picture the typical bankruptcy case. The decision is made to sell the assets, and debtor’s counsel drafts bidding procedures to create a framework to generate the highest and best bid for a particular estate asset. The committee and the secured creditors make comments and the court approves the bidding procedures.
On June 28, 2011, the U.S. Court of Appeals for the Seventh Circuit affirmed the U.S.
![Photo of William Snyder [1]](https://abi-org-corp.s3.amazonaws.com/committee/Authors/ABICommitteeLogo_42.png)
Editor’s Note: For more information about this case, please read two features by Jonathan S. Covin and David G. Gamble that were published in the July/August and October 2010 issues, respectively.
In In re Douglas Ray, [1] the Ninth Circuit recently held that a bankruptcy court lacks jurisdiction to reopen a closed case to preclude a collateral attack on its prior, final sale order.
Background
It's Never Too Late to Deal with Unscheduled Assets by: Krystiana L. Gembressi
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