« UFTA now the UVTA | Main | Plain Meaning and Chapter 15 »

I'm Confused

posted by Stephen Lubben

Again.  This morning's Daily Bankruptcy Review reports that Fisker's creditors want to sue the debtor's secured lender.  This is part of a fight over the proceeds of a 363 sale, where the holder of the secured debt was infamously limited to credit bidding the amount it had paid for the debt, rather than the full face amount.

Now the creditors want to contest the validity of the $168.5 million secured loan that Hybrid Tech Holdings LLC purchased from the Department of Energy.  In short, they argue that Hybrid discouraged bidding at the loan sale, so it was able to pay the DOE less than the loan was worth.  Thus they want to void part of the creditor's lien ...

This is where I get lost. How do the creditors have standing to challenge a sale they were not part of? And how are they harmed by the secured creditor's actions?  Isn't this something for the DOE to complain about?

Alas, the story provides no answers.

Comments

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF

Powered by TypePad