In this podcast, Pepper attorney Henry Jaffe, a partner in Pepper’s Philadelphia and Wilmington offices, and a member of the firm’s Corporate Restructuring and Bankruptcy Practice Group, discusses a recent court ruling that dealt with a creditor’s right to “credit bid” on an asset for sale in a bankruptcy case.

In the Chapter 11 bankruptcy case of Electroglas Incorporated, the court decided, the creditor’s right was compromised because the creditor is a bondholder or noteholder whose rights are subject to a trust indenture agreement. Specifically, the court ruling stated that credit bids come from the trustee, not the noteholder.

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