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Uniform Commercial Code (UCC) Commercial Bankruptcy

White and Williams LLP

Uniform Law Commission Approves Uniform Assignment for Benefit of Creditors Act

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At its recently concluded annual meeting, the Uniform Law Commission (ULC) voted final approval of the Uniform Assignment for Benefit of Creditors Act (“Act”). Set forth below is a short discussion of “ABCs” as they...more

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

Ice Miller

Puff, Puff, Pass the Assets: Purchasing Distressed Assets in the Cannabis Sphere

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Following years of explosive growth and regulatory change, the cannabis industry is at a turning point. Initial enthusiasm has fallen to harsh realities, and many cannabis businesses must address mounting financial pressure,...more

Troutman Pepper Locke

Navigating Jurisdictional Pitfalls: Lessons From Global One Media, Inc. v. Newtek Small Business Finance, LLC on Lien Filing...

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The Ninth Circuit Bankruptcy Appellate panel recently reaffirmed the longstanding principle that a UCC-1 financing statement securing personal property must be filed at the debtor’s location. In a recent case, the lender did...more

Foley & Lardner LLP

What Every Multinational Company Should Know About … Managing Import Risks Under the New Trump Administration (Part IV):...

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In an increasingly volatile global economy, suppliers and buyers face unforeseen challenges that may impact their ability to perform under commercial contracts. Longstanding assumptions about the level of tariffs, even under...more

Seward & Kissel LLP

Party On, Burning Rubber and Casual Relationship

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Tupperware cancels auction, agrees to lender takeover | Reuters - On Tuesday, bankrupt Tupperware Brands concurred to sell its company for $23.5 million in and over $63 million in debt relief to a group of lenders,...more

Troutman Pepper Locke

Taking Stock of Liens While There Is Still Time – Do You Really Have the Collateral? - Creditor’s Rights Toolkit

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Trade creditors are usually grouped with “general unsecured creditors” in bankruptcy, but some have liens that can elevate their claim priority. To achieve this, the lien must be properly granted and perfected under...more

Seward & Kissel LLP

Hertz So Good, Drawing Lots, and Sack Lunch

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Hertz Noteholders Land Win in Bankruptcy Interest Payoff Fight | Bloomberg Law - On Tuesday, an appeals court ruled that car rental company the Hertz Corp, which emerged from bankruptcy in 2021, must pay over $270 million...more

Proskauer Rose LLP

Key Uniform Commercial Code Financing Statement (UCC-1) Requirements

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The UCC‑1 form is a staple of any secured lending practice. In the wake of the 2022 proposed Uniform Commercial Code (UCC) amendments, which have been adopted in 24 jurisdictions, many jurisdictions have updated their UCC‑1...more

ArentFox Schiff

Understanding Suppliers’ Rights and Remedies in Retail and Hospitality Bankruptcies

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On May 14, Outfox Hospitality LLC, the parent company of the retail chain Foxtrot Market, along with its affiliates, filed for Chapter 7 bankruptcy protection in the Bankruptcy Court for the District of Delaware, with the...more

Troutman Pepper Locke

Can I Enhance My Prospects for Payment Through a Purchase Money Security Interest? - Creditor’s Rights Toolkit

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A seller of goods may gain priority over other creditors, and enhanced prospects for payment, by taking and perfecting a purchase money security interest (PMSI) in the goods sold to a customer. This article will explain what...more

Nelson Mullins Riley & Scarborough LLP

Does Electricity Supplied Within 20 Days of a Bankruptcy Qualify for Section 503(b)(9) Priority Status? Recent Decisions Say “No”

Section 503(b)(9) Overview - Ever since its addition to the Bankruptcy Code in 2005, there has been an ongoing debate as to whether electricity is a “good” or a “service” for purposes of section 503(b)(9). If electricity...more

Jones Day

New York Department of Financial Services Issues Guidance on Virtual Currency Custodial Services

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In Short - The Situation: Following a string of bankruptcies among virtual currency firms, the New York Department of Financial Services has issued guidance on the practices and procedures it expects from certain...more

Troutman Pepper Locke

NY Court of Appeals' Ruling Results in Account Debtor Owing Its Counterparty's Debts Under UCC Article 9

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In Worthy Lending LLC v. New Style Contractors. Inc., the New York Court of Appeals held that a security interest includes a lender’s right to force the borrower’s account debtors to remit payments directly to the lender,...more

Polsinelli

Court Rules that Earn Account Assets are Property of the Debtor: Celsius Bankruptcy Case: January 13, 2023

Polsinelli on

Court rules that Earn Account Cryptocurrency is owned by Debtors and will not be returned - In our latest Bitblog update regarding the Celsius Network LLC, et al. (the “Debtors”) bankruptcy proceeding (Case No. Number:...more

Sullivan & Worcester

Zero Degrees Celsius: The Effects of a "Crypto Winter" and Celsius’ Bankruptcy on Crypto Customers

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Part 1 – Celsius Bankruptcy - The Celsius Network was conceptualized as an alternative to conventional banking, offering its customers return rates of up to 20% on deposits of digital assets, and providing digital...more

Faegre Drinker Biddle & Reath LLP

Do You Know Your Debtor’s Name? Minor Mistakes in UCC-1 Financing Statements Might Be Seriously Misleading

Zero tolerance continues to be the name of the game in drafting Uniform Commercial Code (UCC) financing statements. While in some states, minor mistakes in UCC financing statements may be forgiven, in at least Florida, no...more

Nelson Mullins Riley & Scarborough LLP

A Rose by Any Other Name Might Get Your Lien Stripped Under Florida Law

To the long list of things people love about lawyers we can add last week’s holding by the Eleventh Circuit Court of Appeals that “Blvd.” is utterly unrecognizable as “Boulevard” – at least by Article 9 of the Uniform...more

Proskauer Rose LLP

The Other Side of The Coin: Cryptocurrency Assets in Bankruptcy

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On July 5, 2022, cryptocurrency brokerage Voyager Digital filed for chapter 11 in the Southern District of New York Bankruptcy Court, citing a short-term “run on the bank” due to the “crypto winter” in the cryptocurrency...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

Greenberg Glusker LLP

A Decline In Chapter 11 Filings Allows Attorneys to Utilize Their Skills Elsewhere

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Due to its relation to the state of the economy, a bankruptcy lawyer’s practice can be highly cyclical – actually, counter-cyclical. In the last 30 years or so we have seen a number of economic downturns – the bankruptcy boom...more

Troutman Pepper Locke

In In re Karcredit LLC, US Bankruptcy Court Holds Stock Issuer Liable to Lender for Double-Pledged Stock

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In In re Karcredit LLC , the U.S. Bankruptcy Court for the Western District of Louisiana was faced with two lenders with claims to one original stock certificate as collateral. On June 1, the court held that the corporation...more

Seyfarth Shaw LLP

Commercial Litigation Outlook - 2021

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As the nation emerges from the pandemic, clients face the double-whammy of delayed resolution of existing disputes (thanks to court shutdowns) and increased litigation activity across the board. The third quarter of 2020 saw...more

Gray Reed

Red River Statutory Rivalry: Texas Lien Statute is Fatal to Texas Producers’ Security Interests

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The lesson from In re First River Energy LLC:  Even though Texas lien law does not require the filing of a financing statement for perfection, file one anyway. It will be helpful in the event a dispute is decided under the...more

Cozen O'Connor

Yeah, About That Consignment Agreement … How You Can Lose Your Goods in a Retail Bankruptcy

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You just heard a rumor that your largest retail customer is in financial distress and may file for bankruptcy. After a moment of panic, you review your consignment agreement with the retailer (this assumes that you have a...more

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