Upstream Producers Affected by Appeals Ruling

Third Circuit holds that State-specific protections in favor of oil and gas producers did not apply under Article 9 of the UCC

Filed under:
USA, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Baker McKenzie
Authors:
Natalie L. Regoli , Mark Tibberts , John F. Lawlor
Location:
USA
Firm:
Baker McKenzie
Sixth Circuit Court of Appeals rules that collateral proceeds do not include accounts

The US Court of Appeals for the Sixth Circuit has ruled that a lender’s security interest in accounts was not perfected because a reference to “proceeds” in the lender’s UCC financing statement did not expressly refer to “accounts.” The Sixth Circuit surprisingly interpreted the definition of “proceeds”1 in Article 9 of the Uniform Commercial Code to exclude “accounts”2 (despite and without reference to provisions of UCC Article 9 to the contrary).

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Mayer Brown, Debtor, Collateral (finance), Accounts receivable, Uniform Commercial Code (USA), Sixth Circuit
Authors:
John F. Lawlor , Kevin C. McDonald , Craig E. Reimer
Location:
USA
Firm:
Mayer Brown
Sixth Circuit Court of Appeals rules that collateral proceeds do not include accounts

The US Court of Appeals for the Sixth Circuit has ruled that a lender’s security interest in accounts was not perfected because a reference to “proceeds” in the lender’s UCC financing statement did not expressly refer to “accounts.” The Sixth Circuit surprisingly interpreted the definition of “proceeds”1 in Article 9 of the Uniform Commercial Code to exclude “accounts”2 (despite and without reference to provisions of UCC Article 9 to the contrary).

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Mayer Brown, Debtor, Collateral (finance), Accounts receivable, Uniform Commercial Code (USA), Sixth Circuit
Authors:
John F. Lawlor , Craig E. Reimer
Location:
USA
Firm:
Mayer Brown