credit bid

credit bid
USA
credit bid, Also known as credit bidding. The right of a secured creditor under the Bankruptcy Code to use its secured claim against a debtor as currency in an auction of its collateral in a debtor's Section 363 sale (§ 363(k), Bankruptcy Code). In most jurisdictions, the secured creditor can offset up to the full face amount of its claim against the purchase price of the collateral. This mechanism allows a secured creditor to acquire the assets of the debtor on which it holds a lien in exchange for a full or partial cancellation of the debt, allowing it to acquire the assets without paying any actual cash for them.
Credit bidding can be used as a defensive strategy by lenders to protect the value of their collateral from falling asset prices. It can also be used as a defensive loan-to-own strategy by investors to acquire distressed assets at below-market prices.
For more information on credit bidding, see Practice Note, Credit Bidding in Section 363 Bankruptcy Sales (www.practicallaw.com/7-500-4339).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • credit bidding — USA credit bid, Also known as credit bidding. The right of a secured creditor under the Bankruptcy Code to use its secured claim against a debtor as currency in an auction of its collateral in a debtor s Section 363 sale (§ 36 …   Law dictionary

  • Bid-ask-spread — Als Spread bezeichnet man in der Wirtschaft allgemein die Differenz zwischen zwei einheitsgleichen zu vergleichenden Größen. Als Indikator findet der Spread insbesondere Anwendung im Wertpapierhandel und in der Volkswirtschaftslehre.… …   Deutsch Wikipedia

  • Bid-ask spread — Als Spread bezeichnet man in der Wirtschaft allgemein die Differenz zwischen zwei einheitsgleichen zu vergleichenden Größen. Als Indikator findet der Spread insbesondere Anwendung im Wertpapierhandel und in der Volkswirtschaftslehre.… …   Deutsch Wikipedia

  • Credit default swap index — A credit default swap index is a credit derivative used to hedge credit risk or to take a position on a basket of credit entities. Unlike a credit default swap, which is an over the counter credit derivative, a credit default swap index is a… …   Wikipedia

  • WGA screenwriting credit system — In the United States, screenwriting credit for motion pictures and television programs under its jurisdiction is determined by either the Writers Guild of America, East (WGAE) or the Writers Guild of America, west (WGAw). The Guilds are the final …   Wikipedia

  • Social Credit Party of Canada split, 1963 — The split between Ralliement des créditistes, which was the Quebec wing of the Social Credit Party of Canada, and the national organization had its roots in a long standing dispute between the de facto leader of the Ralliement, Réal Caouette, and …   Wikipedia

  • Federation credit — The Federation Credit is the basic monetary unit of the United Federation of Planets in the fictional Star Trek series.It has been said in episodes like the episode The Neutral Zone and movies like that the economy of the Federation is quite… …   Wikipedia

  • Long-Term Credit Bank of Japan — Infobox Defunct company company name = The Long Term Credit Bank of Japan, Ltd. company slogan = company type = fate = Bankruptcy; acquired by Ripplewood Predecessor = long term financial divisions of Nippon Kangyo Bank and Hokkaido Takushoku… …   Wikipedia

  • Foreclosure — For Lacan s psychoanalytic process, see Foreclosure (psychoanalysis). House in Salinas, California under foreclosure, following the popping of the U.S. real estate bubble. Foreclosure is the legal process by which a mortgage lender (mortgagee),… …   Wikipedia

  • MatlinPatterson Global Advisors — MatlinPatterson Global Advisers Type Private Industry Private equity Founded 2002 F …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”