CASE AT A GLANCE
A bankruptcy plan can only be confirmed over the objection of a secured creditor if the plan is found to be “fair and equitable.” The fair and equitable standard requires, at a minimum, that (i) the creditor may retain its lien on its collateral; (ii) the collateral will be sold subject to the creditor’s right to credit bid its debt; or (iii) the creditor will receive the “indubitable equivalent” of its claim. The Supreme Court must decide whether a plan can provide for the sale of collateral without granting the creditor the right to credit bid (as required under clause (ii)) by providing the creditor with the proceeds of the sale as the “indubitable equivalent” of its claim, under (iii).
39 Preview U.S. Sup. Ct. Cas. 248 (April 16, 2012)