Cross-collateralization in the wake of Shapiro v. Saybrook Manufacturing Co
Article Abstract:
Bankruptcy courts, following the 11th Circuit US Court of Appeals' holding in In re Saybrook Manufacturing Co, should only allow creditors to cross-collateralize their loans when the newly-secured creditors' claims will not jeopardize the claims of already-secured creditors. This is because cross-collateralization, where creditors loan a corporate debtor reorganization capital in exchange for a security interest in both pre-debt and post-debt corporate assets, can undermine Bankruptcy Code provisions intended to give secured creditors debt repayment priority over unsecured creditors.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1993
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Super-priority of securities intermediaries under the new section 9-115(5)(c) of the Uniform Commercial Code
Article Abstract:
Section 9-115(5)(c) was added to the Uniform Commercial Code in 1994 to add certainty to secured transactions involving intermediaries, but the section will be subject to divergent interpretations by secured creditors and intermediaries. Section 9-115(5)(c) grants super-priority in the investment securities of a debtor to the debtor's intermediary. Secured creditors will argue that this super-priority is unwarranted and inefficient. The intermediaries will respond that the statute is clear on its face.
Publication Name: Harvard Law Review
Subject: Law
ISSN: 0017-811X
Year: 1995
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Ordinary business terms: ending the debate surrounding s. 547(c)(2)(C)
Article Abstract:
The author discusses a provision of the Bankruptcy Code allowing bankruptcy trustees to prevent preferential pre-bankruptcy transfers of a debtor's property.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1999
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