BASELESS: A federal court's rationale for barring a bankruptcy auction in the Fisk Automotive case "is just made up," says Elliot Ganz, general counsel of the Loan Syndications and Trading Association.

Credit Bidding Under Attack — Again

Legal experts are becoming increasingly concerned that federal judges are questioning the right of a lender of secondary creditor to bid the full value of claims in Chapter 11 cases. For banks looking at bankruptcy, this development provides more encouragement to settle with certain debtholders before seeking legal protection.

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