An oversecured creditor is generally entitled to post-petition interest, to the extent provided for under a loan agreement, as a part of its secured claim in a bankruptcy case. However, courts are split as to (1) whether or not the same applies to interest incurred at a contracted d
Secured creditors whose collateral includes its borrowers’ accounts are empowered by Article 9 to collect money that is owed to borrowers from their borrowers’ account debtors, by a simple notice process. The secured creditor can notify account debtors of the security interest and advise them that they should pay the secured creditor directly, instead of paying the borrower.
In this time of COVID-19, creditors and debtors alike have looked for ways to address the financial squeeze the pandemic has imposed on the global economy. On the one hand, debtors are likely to look for more time for their business operations to return to “normal.” On the other hand, creditors are likely to look for certainty of results in an otherwise uncertain time.
It may seem counterintuitive for banks and other lenders to provide loans to companies in bankruptcy, but they often do. All companies, especially those in bankruptcy, need liquidity to continue operating. Ensuring the availability of cash is one of the most important considerations in a chapter 11 reorganization, because debtors are often unable to reorganize without adequate cash flow.
This year has been like no other. With the rest of the world, ABI’s Secured Credit Committee was jilted by the speed at which our in-person conferences and activities came to a halt. At the same time, we marveled at how efficiently the Annual Spring Meeting was retooled for virtual happy hours, networking opportunities and webinars that have lasted through these trying months.
When asked whether a foreclosure sale can be avoided in bankruptcy, the first answer that comes to many practitioners’ minds is “no” because of the Supreme Court’s opinion in BFP v. Resolution Trust Corp. The correct answer, though, is a much more nuanced “it depends.” The Third Circuit’s Sept.
Throughout 2019, the retail industry continued to struggle as numerous retailers — from a variety of product and apparel categories — sought bankruptcy relief. Further, many retailers entered chapter 11 with an intent to liquidate all, or substantially all, of their assets quickly and efficiently.
Secured creditors should file UCC-1 financing statements. A proper UCC-1 must list both the name of the debtor and a description of the collateral. In a recent case before the First Circuit, both components in initial financing statements were insufficient to perfect the secured creditors’ interests.
In an insolvency situation, a lender’s strategy is very dependent upon the nature and extent of its collateral. Nothing can be more frustrating to a lender than believing it is in a senior position, only to find out that it has been primed. While a standard UCC Article 9 search will discover most liens and security interests, certain liens and interests require enhanced diligence.
“First in time, first in right,” is one of the first things taught in a law school’s secured transactions class. Yet a recent ruling from the U.S.
Hosted by the Secured Credit and Unsecured Trade Creditors Committees. Unsecured trade creditors and secured creditors confront similar plan analysis issues, including gerrymandering, vote incentivization schemes, drop dead provisions, and golden shares. The panel will discuss some of those “creative” plan provisions and interesting confirmation issues that impact both secured and unsecured creditors.
This panel hosted by the Commercial Fraud and Secured Credit Committees will take a fresh look at secured creditor rights and unique solvency issues in fraud and Ponzi cases. Learn how to avoid being trumped in federal forfeiture proceedings or paying on bankruptcy clawback claims by treading in the safe harbor of § 546(e) — and learn how to navigate the shoals of receivership.
This program will provide an introduction to the most common types of intercreditor and subordination agreements involved in transactions today and will highlight drafting considerations and points of negotiation involved in each. Additionally, the panelists will provide an overview of important bankruptcy court decisions involving the interpretation and enforceability of intercreditor agreements and subordination agreements and will provide insight about how intercreditor and subordination agreements have changed (or should change) in response.
Legal and Practical Issues Involving Secured Creditors and the Retention of Financial Advisors.
Secured Credit Under the Code and Commission Report
The Asset Sales Committee hosted their most recent committee call on Wednesday, November 12. This call was titled "Bankruptcy Reform Commission’s Consideration of a Proposal to Surcharge Secured Lenders for 363 Asset Sales," and worked to more broadly inform and engage bankruptcy and restructuring professionals about the proposal being considered by the Bankruptcy Reform Commission to assess a charge on secured lenders for 363 asset sales in Chapter 11.
Ice Miller LLC
New York, NY
Bryan Cave Leighton Paisner LLP
Kansas City, MO
Membership Relations Director
Greenspoon Marder LLP
West Palm Beach, FL
Spencer Fane LLP
Kansas City, MO
Special Projects Leader
Winthrop & Weinstine, P.A.