River Road Hotel Partners, LLC v. Amalgamated Bank

Bankruptcy Ct. did not err in denying debtors' motion to approve proposed bid procedures that sought to sell all of their encumbered assets free and clear of all liens through auction via use of "stalking horse offer" without allowing secured lenders ability to bid their credit at said auction. Under 11 USC section 1129(b)(2)(A)(iii), instant secured lenders must be given credit-bidding rights. Ct. rejected debtors' contention that their proposed plan satisfied "indubitable equivalent" requirements set forth for plan approval under 11 USC 1129(b)(2)(A)(iii), where, according to debtors, auction itself established market price for company assets, and where instant lenders would receive proceeds of sale.