Radlax Gateway Hotel, LLC, et al. v. Amalgamated Bank (566 U.S. 639)
U.S. Supreme Court · decided May 29, 2012 · Supreme Court Database (Spaeth)
- Citation
- 566 U.S. 639 · 132 S. Ct. 2065
- Decided
- May 29, 2012
- Term
- October Term 2011
- Vote
- 8–0
- Majority author
- Justice Scalia
- Issue area
- Civil Rights
- Disposition
- Affirmed
- Outcome
- Petitioning party lost
- Ideological direction
- Conservative
Opinion excerpt
Justice SCALIA delivered the opinion of the Court. We consider whether a Chapter 11 bankruptcy plan may be confirmed over the objection of a secured creditor pursuant to 11 U.S.C. § 1129(b)(2)(A) if the plan provides for the sale of collateral free and clear of the creditor’s lien, but does not permit the creditor to “credit-bid” at the sale. I In 2007, petitioners RadLAX Gateway Hotel, LLC, and RadLAX Gateway Deck, LLC (hereinafter debtors), purchased the Radisson Hotel at Los Angeles International Airport, together with an adjacent lot on which the debtors planned to build a parking structure. To finance the purchase, the renovation of the hotel, and construction of the parking structure, the debtors obtained a $142 million loan from Longview Ultra Construction Loan Investment Fund, for which respondent Amalgamated Bank (hereinafter creditor or Bank) serves as trustee. The lenders obtained a blanket lien on all of the debtors’ assets to secure the loan. Completing the parking structure proved more expensive than anticipated, and within two years the debtors had run out of funds and were forced to halt construction. By August 2009, they owed more than $120 million on the loan, with over $1 million in interest accruing every month and no prospect for obtaining additional funds to complete the project. Both debtors filed voluntary petitions for relief under Chapter 11 of the…
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