RadLAX Gateway Hotel, LLC v. Amalgamated Bank
|Docket No.||Op. Below||Argument||Opinion||Vote||Author||Term|
Apr 23, 2012
|May 29, 2012||8-0||Scalia||OT 2011|
Holding: Debtors may not obtain confirmation of a Chapter 11 bankruptcy “cramdown” plan that proposes to sell substantially all of the debtors’ property at an auction, free and clear of the Bank’s lien, using the sale proceeds to repay the Bank, but that does not permit the Bank to credit-bid at the sale.
Plain English Summary: This case considers the procedures that apply when a bankrupt company wants to sell a major asset –in this case, a hotel. The lender that has a mortgage on the asset argues that it has a right to take the asset if it goes unpaid. The borrower argues that the asset should be sold and that the lender gets the asset only if it is willing to pay the most for it. The lender says this is ridiculous, because it requires the lender to put in new cash to buy an asset for which it already has an unpaid loan. The Court agreed with the lender.
Judgment: Affirmed, 8-0, in an opinion by Justice Scalia on May 29, 2012. (Kennedy, J., recused)
- Opinion analysis: Justices preserve lender prerogatives in bankruptcy auction dispute (Ronald Mann)
- Argument recap: Justices see world through lender’s eyes in bankruptcy auction dispute (Ronald Mann)
- Court to consider rules for bankruptcy auctions (Ronald Mann)
- December grants: In Plain English (Amy Howe)
- Petition of the day (Joshua Matz)
Briefs and DocumentsMerits Briefs for the Petitioners
- Brief for Professors Richard Aaron et al.
- Brief for Bankruptcy Scholars
- Brief for the Loan Syndications and Trading Association et al.
- Brief for G. Eric Brunstad, Jr.
- Brief for the United States