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Indiana State Police Pension Trust V. Chrysler: A Missed Opportunity To Improve Collateral Valuation Doctrine, Jason A. Pan

Jason A Pan

Section 506(a)(1) of the Chapter 11 bankruptcy code addresses how to value collateral. This issue arose in Indiana State Police Pension Trust v. Chrysler, but unfortunately the Supreme Court declined to hear the case. As a result the current doctrine on whether to value collateral according to a liquidation versus a going concern standard is Assocs. Commercial Corp. v. Rash, which held that collateral should be valued according to its proposed use. The Rash doctrine, that collateral is to be valued using a going concern standard when proposed to be used in a going concern context, creates opportunity for economic …