Madlyn Gleich Primoff, a Partner in Kaye Scholer’s Bankruptcy & Restructuring Practice, shares her perspective on the US Supreme Court RadLax case (RadLAX Gateway Hotel, LLC and RadLAX Gateway Deck, LLC v. Amalgamated Bank).
Depending on the outcome, the case will either be used to preserve and confirm the rights of secured lenders in bankruptcy sales – or to undermine the secured lenders’ position. This case tests the well-established principle in bankruptcy cases that lenders are either entitled to be repaid or to take their collateral.
When the debtor in RadLAX filed for bankruptcy, $120 million was owed to the secured lender. The debtor in this case attempted to sell their assets to a bidder for $47.5 million, blocking the lender’s credit bid. The Court of Appeals for the Seventh Circuit ruled in favor of the lender. However, the Third and Fifth Circuits ruled to the contrary in other cases.
The U.S. Supreme Court is now scheduled to rule on this case, which has far-reaching importance for all parties in bankruptcy cases involving a sale under a plan of reorganization. The video can be viewed here.
Also of Interest
- IFLR1000 Recognizes Kaye Scholer’s Global Presence, Practices and Lawyers October 19, 2016 • Recognitions
- Kaye Scholer Clients Achieve Nearly Full Recovery in Arch Coal Chapter 11 Proceeding October 14, 2016 • Client Successes
- New LSTA Par/Near Par Delayed Compensation Regime August 31, 2016 • Client Alerts
- Following Five-Day Trial, Kaye Scholer Secures Win for Medicalgorithmics August 25, 2016 • Client Successes
- Primoff Named Best in Insolvency & Restructuring at Americas Women in Business Law Awards August 22, 2016 • Recognitions
- Best Lawyers 2017 Recognizes 41 Kaye Scholer Lawyers August 15, 2016 • Recognitions
- Summer Associates Successfully Assist Transgender Clients July 27, 2016 • Client Successes
- LSTA Distressed vs. Par/Near Par Secondary Trading Documents—A Review and Analysis June 30, 2016 • Client Alerts
- Brexit—What We Know June 29, 2016 • Client Alerts