A federal “secured tax claim takes priority over [a professional’s] claim to fees” in an aborted Chapter 11 case, held the U.S. Court of Appeals for the Fourth Circuit on Jan. 26, 2016. In re Anderson, 2016 WL 308590, at *1 (4th Cir. Jan. 26, 2016).
The uncertain economic times and high leverage multiples on many loan transactions have combined to create distress in many commercial loan portfolios. An understanding of commercial loan workouts is integral to loan officers, portfolio managers and internal lenders’ counsel.
With the latest wave of bankruptcies sweeping the aviation and airline industries, you will find bankers and lawyers sweating over the priority and perfection of their aircraft liens. These bankruptcies seem to have a different character when contrasted with the bankruptcies of 2002 through 2004. Many of the 2008 bankruptcies are operational shut-downs and liquidations rather than restructurings. That means that the status of creditors (as secured or unsecured) is going to become acutely relevant and will determine how much the bankruptcy affects the creditor's financial outcome.
With the latest wave of bankruptcies sweeping the aviation and airline industries, you will find bankers and lawyers sweating over the priority and perfection of their aircraft liens. These bankruptcies seem to have a different character when contrasted with the bankruptcies of 2002 through 2004. Many of the 2008 bankruptcies are operational shut-downs and liquidations rather than restructurings. That means that the status of creditors (as secured or unsecured) is going to become acutely relevant and will determine how much the bankruptcy affects the creditor's financial outcome.
The U.S. Court of Appeals for the Fifth Circuit recently held that a transfer of a tax lien to a tax buyer under Texas law does not constitute an extension of credit that is subject to the federal Truth in Lending Act (TILA).
A copy of the opinion is available at: Link to Opinion.
The Bottom Line
In re Killmer, 513 B.R. 41 (Bankr. S.D.N.Y. 2014) –
After reopening a bankruptcy case, a mortgagee moved for a determination that a post-petition delinquent property tax sale was void because it was held in violation of the automatic stay. In response, the tax authority requested retroactive annulment of the stay.
A federal “secured tax claim takes priority over [a professional’s] claim to fees” in an aborted Chapter 11 case, held the U.S. Court of Appeals for the Fourth Circuit on Jan. 26, 2016. In re Anderson, 2016 WL 308590, at *1 (4th Cir. Jan. 26, 2016).