Credit Bidding Goes to Washington: Supreme Court Justices Weighing Radlax Case

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The U.S. Supreme Court takes on a limited number of cases per year, and those relating directly to the credit profession and bankruptcy activity make up only a minute portion of those annually slated. This year, a key case regarding protocol in a bankruptcy asset auction conducted as part of a plan of reorganization, RadLAX Gateway Hotel LLC v. Amalgamated Bank, found its way onto the schedule for April 23 arguments with a decision to follow by the summer. At stake is whether secured creditors have an absolute right to bid the value of debt owed to them by a debtor selling assets at auction, when the sale is part of a plan of reorganization, a process called credit bidding, as the U.S. …