The “Easy Case”: RadLAX and the Right to Credit-Bid

The “Easy Case”: RadLAX and the Right to Credit-Bid
Monique Bair DiSabatino
ABI New and Young Members Committee Newsletter

Monique A. Bair, an associate in the Bankruptcy and Restructuring Practice, wrote this article about the implications of the U.S. Supreme Court’s May 29, 2012 8-0 decision RadLAX Gateway Hotel LLC v. Amalgamated Bank.

In her article, Monique provides background on credit-bidding and the pre-RADLAXcase law to explain and analyze the significance of the Supreme Court’s decision, which was a clear directive that the right to credit-bid cannot be bypassed through the “indubitable-equivalent” prong. She also concluded that the Court’s decision resolved many open issues that had bubbled up from the Third, Fifth and Seventh Circuit Courts regarding whether the right to credit-bid can be bypassed.