Recent Trends in the Credit Bidding of Assets and Cross-Border Issues

This panel will explore recent cases and trends of credit bidding in chapter 11 cases. Many lenders are now requesting up-front approval of credit bid rights in debtor-in-possession financing orders, which would curtail the bankruptcy court’s ability to modify or limit credit bidding rights under Bankruptcy Code § 363(k) later on when the assets are auctioned. The panel will examine recent decisions on credit bidding and what limitations courts have applied to a secured creditor’s right to credit bid in bankruptcy cases. The panel will also explore cross-border issues concerning credit bidding on groups of assets that are be owned by foreign entities, and the interplay between courts concerning the sale of these types of assets.