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Creditors Liens Bankruptcy Code

Jones Day

New York Bankruptcy Court Adopts "Realistic Possibility" Standard for Free and Clear Sales Under 11 U.S.C § 363(f)(5)

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Section 363(f)(5) of the Bankruptcy Code allows a bankruptcy trustee to sell estate property free and clear of any competing interest in the property (such as a lien or other security interest) if the interest holder "could...more

Jones Day

Secured Lenders Win Victory in Sanchez Bankruptcy

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The Ad Hoc Group of Senior Secured Noteholders and DIP Lenders (the "Ad Hoc Group") obtained a unanimous judgment in their favor in an appeal following Sanchez Energy Company's long-running, hard-fought bankruptcy case. Once...more

Offit Kurman

Acquisition Strategies: Navigating Section 363 Sales and the Impact of Undersecured Liens

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Section 363 of the Bankruptcy Code allows a Chapter 11 debtor to sell assets "free and clear" of existing claims, liens, encumbrances, and other liabilities. This provision facilitates expedited sales that might otherwise be...more

Loeb & Loeb LLP

SDNY Bankruptcy Court Explains Differences Between Preferential Judicial Liens v. Statutory Liens

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In Firstbase.io, Inc. v. Harbor Business Compliance Corporation, No. 24-04043, 2025 Bankr. LEXIS 1092 (Bankr. S.D.N.Y.), the U.S. Bankruptcy Court for the Southern District of New York found that a judgment execution lien...more

Holland & Knight LLP

Oil and Gas Counterparty Risk: Dealing with Statutory Mineral Liens

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The legal frameworks governing statutory lien rights of oil and gas trade creditors vary significantly between Texas and Louisiana (as well as among other hydrocarbon-producing states). Material distinctions exist between...more

Eversheds Sutherland (US) LLP

In re Urban Commons 2 West LLC (Bankr. SDNY Mar. 4, 2025)

Bankruptcy Court Elects to Follow Majority Interpretation of 11 U.S.C. § 363(f)(5) On March 4, 2025, the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) issued a significant...more

Blank Rome LLP

Security Interests and Liens Priorities

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This practice note discusses the requirements for the attachment and perfection of consensual security interests in personal property under Article 9 of the Uniform Commercial Code (UCC). A security interest is said to attach...more

Goodwin

Intercreditor Agreements and the Bankruptcy Code

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There is no set of fixed rules when negotiating intercreditor arrangements as every deal is fact-specific, generally subject to significant negotiation and ultimately dependent on competing business rationales and negotiating...more

Quarles & Brady LLP

Intercreditor Agreements in Bankruptcy: How Intercreditor Agreements shape the proceedings and outcomes for secured creditors

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Junior and Senior Lenders work hard to negotiate Intercreditor Agreements. What difference does it make? Isn’t it enough to simply agree that the Junior Lender is in a junior position? This article follows a borrower,...more

Lowenstein Sandler LLP

Do Not Take Consignments Lightly

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While things worked out for vendors who did not file a UCC-1 in the Sports Authority Chapter 11, you may not be so lucky. Never assume that it is not necessary to properly perfect a consignment arrangement by filing a...more

Jones Day

An Equitable Tightrope: Blackjewel's Balancing Act on After-Acquired Property in Bankruptcy

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It is well recognized that, in keeping with the "fresh start" or "rehabilitative" policy, the Bankruptcy Code invalidates after-acquired property clauses in prepetition security agreements, but also includes an exception to...more

Patterson Belknap Webb & Tyler LLP

Recent Decision on Derivative Standing by a Creditors’ Committee to Challenge a Lender’s Liens

In many chapter 11 cases, creditors’ committees can play a vital role in maximizing the recoveries of unsecured creditors. But the powers of creditors’ committees are circumscribed by both the Bankruptcy Code and case law....more

Patterson Belknap Webb & Tyler LLP

New Court Ruling on Whether Avoidance Powers Require Benefit to Creditors

The Bankruptcy Code grants the power to avoid certain transactions to a bankruptcy trustee or debtor-in-possession. See, e.g., 11 U.S.C. §§ 544, 547–48. Is there a general requirement that these avoidance powers only be...more

Emmet, Marvin & Martin LLP

Pre-judgment Attachment Lien May Be Sufficient “cause” To Lift Automatic Stay

11 U.S.C. 362(d)(1) empowers the Bankruptcy Court to grant relief from the automatic stay on the request of a party-in-interest “for cause, including lack of adequate protection of an interest in property of such party in...more

Spilman Thomas & Battle, PLLC

Top 10 Bankruptcy Truths for Creditors to Know

Much of the bankruptcy chatter arising from the pandemic world in which we find ourselves is now focusing on the cascade of new bankruptcy cases that are predicted to arrive soon. We have already seen the effects of closed...more

ArentFox Schiff

In the Third Circuit, an Intercreditor Agreement Means What it Says

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The Plain Meaning Language of an Intercreditor Agreement Determines Whether it Governs Plan Distributions or Adequate Protection Payments - In a recent non-precedential opinion, the United States Court of Appeals for the...more

BCLP

In Case You Missed It – PACA Trust Rights in Bankruptcy are Just Plain Old Secured Claims

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Happy 2018! We at The Bankruptcy Cave have been itching to write about the Cherry Growers Chapter 11 case – which really is ground-breaking – but the holidays, life, and yes, work for clients too, all just got in the way. ...more

Best Best & Krieger LLP

Bankruptcy Procedure in the Context of Turnover and Preference Law

In the course of collections activities, a creditor can become singularly focused on aggressively pursuing enforcement of a debt by levying against the debtor’s property or by demanding and receiving payment from the debtor....more

Mintz - Public Finance Viewpoints

Statutory Liens vs. Consensual Liens: Why it Matters and When it may Not

While secured creditors are entitled to special rights in bankruptcy, those rights may differ depending on whether creditors have a statutory or consensual lien on their collateral. This is primarily because section 552(a)...more

Pullman & Comley, LLC

Bankruptcy Beat: The Second Circuit Establishes a Binding Standard For Lien Extinguishment Under a Plan of Reorganization

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The Second Circuit Court of Appeals recently issued an opinion, City of Concord, N.H. v. N. New England Tel. Operations, LLC (In re N. New England Tel. Operations LLC), 795 F.3d 343 (2d Cir. 2015), addressing an issue of...more

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