Secured Credit Committee

ABI Committee News

Unsecured Creditors May Claim Postpetition Attorneys' Fees*

The Second Circuit Court of Appeals held on Nov. 5, 2009, that a creditor was entitled to its postpetition legal fees incurred on a prepetition indemnity agreement. In affirming the lower courts, the Second Circuit explained that the Bankruptcy Code “interposes no bar to recovery.”[1]

Read the full article.

Third Circuit Rejects Implied Waiver of Article 9 and Confirms What Constitutes a “Commercially Reasonable Search”

In September 2009, the Third Circuit issued a ruling in Wawel Savings Bank v. Jersey Tractor Trailer Training Inc. (In re Jersey Tractor Trailer Training Inc.), 580 F.3d 147 (3d Cir. 2009), that addressed significant issues that can arise in situations where competing claims to a debtor’s accounts receivable exist between a traditional lender and a factor. Although the court emphasized that it was rendering its decision based on the New Jersey version of the Uniform Commercial Code (UCC), its relatively broad holdings are generally applicable in the Circuit.

Read the full article.

Kansas Bankruptcy Court Offers Guidance to Secured Lenders Regarding Settlement with Unsecured Creditors’ Committees

In In re Crescent Oil Company, et al., Case No. 09-20258, pending in the U.S. Bankruptcy Court for the District of Kansas, the court entered an order approving a gifting carve-out that could provide a road map for some undersecured lenders in their dealings with unsecured creditors’ committees.

Read the full article.

ABI's 15th Annual Rocky Mountain Bankruptcy Conference

Winter Leadership Conference Session Now Available in Audio Format

Secured Credit Committee Session at ABI's 28th Annual Spring Meeting