QUESTION PRESENTED

Section 1129(b)(2)(A) of the Bankruptcy Code sets forth three alternative standards for determining whether a chapter 11 plan is “fair and equitable” to an objecting class of secured creditors. In this case, Petitioners (the Debtors) proposed a chapter 11 plan involving a sale of assets free of liens that satisfies one of these standards by providing their secured lender with the “indubitable equivalent” of its claim pursuant to § 1129(b)(2)(A)(iii). The courts below, however, held that the Debtors must proceed under § 1129(b)(2)(A)(ii) and allow their secured lender to “credit bid” (bid its debt in lieu of cash) at the sale.

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