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Avoiding Liens in Puerto Rico
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. But in this litigation in the Puerto Rico bankruptcy case, the court held that the financing statement amendments were sufficient for perfection.[1]
Avoiding Unperfected Security Interests
Beware of Priming Liens: Four Common Types of Priming Liens and 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. Four common types of liens and interests that require such enhanced diligence are discussed here.
IRS Tax Liens
Sometimes First in Time Isn’t First in Right
“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. Bankruptcy Court for the Southern District of Mississippi reminds us that sometimes the winner of the race to the courthouse does not get the gold medal in a lien-priority contest.[1]
2017 Winter Leadership Conference - Plan Issues Facing Secured And Unsecured Creditors
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.
2017 Annual Spring Meeting - The Rights of Secured Creditors in a Commercial Fraud Case
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.