Bankruptcy and Secured Creditor Priority: Identifying, Resolving, or Avoiding Hidden and Springing Liens

A live 90-minute CLE video webinar with interactive Q&A


Wednesday, October 6, 2021 (in 11 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926

This CLE course will offer bankruptcy counsel best strategies for establishing a rigorous methodology for identifying and resolving hidden and springing liens encumbering their collateral. The program will review types of hidden and springing liens, Bankruptcy Code provisions that allow post-petition perfection and priming of liens, and strategies for protecting secured interests before their liens are diluted or destroyed.

Description

Challenging the validity, extent, and priority of liens is part and parcel of the bankruptcy process. But not all liens that affect priority are disclosed in standard tax, lien, and judgment searches, and not all exist when the loan is incurred. "Springing" and "hidden" liens arise without the consent of the parties and by federal or state statute, as a part of the financing and refinancing arrangements, from the nature of the debtor's or a subsidiary's industry.

These "hidden" liens may prime the secured creditor's liens in bankruptcy with serious consequences to its priority and ability to recover. They can derail or terminate sales of assets, regardless of the size of the hidden lien or the asset. They can even follow property out of bankruptcy. They arise in favor of governments and private parties.

Counsel must prepare to address the problems that can arise from conflicting laws and liens favoring multiple parties in multiple jurisdictions, perhaps multiple times. More recently, courts have been reevaluating historic lien jurisprudence with surprising results in some cases. Counsel for creditors must be vigilant in identifying these liens and adopting a vigorous method for challenging them or preventing the lienholder from controlling the case.

Listen as this panel of bankruptcy counsel discusses what secured creditors need to know to protect themselves from hidden and springing liens and best strategies for strengthening their position in bankruptcy.

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Outline

  1. Problem of hidden liens
  2. Types of hidden liens and how to identify them
    1. Non-UCC recorded liens
    2. Tax liens
    3. Mechanics and materialman's liens
    4. Agricultural and livestock liens
    5. CERCLA
    6. ERISA
    7. FLSA
  3. Recent case law
  4. Creditors strategies for challenging and removing liens

Benefits

The panel will review these and other essential issues:

  • What are the most overlooked types of hidden or springing liens?
  • What law governs whether such liens exist?
  • Does the automatic stay prevent hidden liens?
  • What are best strategies for uncovering hidden liens?
  • What protections from hidden liens are available under Section 363?

Faculty

Herman, Ira
Ira L. Herman

Partner
Blank Rome

Mr. Herman concentrates his practice on distressed public debt issues, insolvency matters involving upstream and...  |  Read More

Sargent, Brandy
Brandy A. Sargent

Partner
K&L Gates

Ms. Sargent represents debtors, lenders, vendors, purchasers, and official and unofficial committees in a variety of...  |  Read More

Steinberg, Rick
Rick A. Steinberg

Of Counsel
Price Meese Shulman & D’Arminio

Mr. Steinberg specializes in the representation of transportation and logistics companies in maritime, bankruptcy and...  |  Read More

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A savings of $148

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A savings of $148

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

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