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O'Melveny's Bender and Logan Offer Comments on Upcoming Supreme Court Bankruptcy Case in The Deal Pipeline

February 09, 2012 As the US Supreme Court prepares to hear oral argument in April on the issue of credit-bidding by lenders in bankruptcy matters, The Deal Pipeline quoted the perspectives of Gerald Bender and Ben Logan, two O'Melveny Restructuring Practice Group partners, on the issue.

In a February 9, 2010 article, "Credit Issue," The Deal Pipeline reports that a conflict within the federal Circuit Courts of Appeal has landed the issue of "whether lenders must be allowed to credit-bid their debts in bankruptcy auctions" before the High Court. The Third Circuit barred the practice, which many lawyers have long interpreted the Bankruptcy Code to sanction, in the bankruptcy of Philadelphia Newspapers LLC. Logan and Bender represented the official committee of unsecured creditors in the Philadelphia Newspapers matter.

"[The Third Circuit's ruling] threw a monkey wrench into the system," Bender told the publication. Logan added that the ruling "caused bankruptcy lawyers across the country to scratch their heads."