Publications

Credit Bidding After Fisker: Challenges Lacking Substance Will Not Be Upheld

April 1, 2016ABF Journal

Stephen Selbst authored an article analyzing a number of cases affecting the rights of secured creditors seeking to credit bid in a bankruptcy. Selbst analyzed several cases occuring since litigation in the Chapter 11 of Fisker Automotive Holdings reignited questions about the rights of parties to credit bid “for cause.” He concluded, “Lessons from post-Fisker cases include: creditors that engage in misconduct may be barred from credit bidding, courts will not tolerate chilling the auction process, having a counter-bidder strengthens the case for limiting credit bidding and mere boilerplate allegations of cause are insufficient.”