Trust created to facilitate secured financing held ineligible for bankruptcy relief
Article Abstract:
The 2nd Circuit has given a divided decision on whether a special-purpose trust qualifies for bankruptcy relief, and lawyers should carefully relate the opinions to their particular trusts. Relief was denied in In re Secured Equipment Trust of Eastern Air Lines, Inc., for a sale and leaseback arrangement of aircraft. The trust was denied status as a business trust and therefore not protected under the Bankruptcy Code.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1995
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From the bankruptcy courts: a trustee's power to compel a secured creditor to pursue remedies against a guarantor: marshaling of assets revisited again
Article Abstract:
A district court ruling for In re Vermont Toy Works Inc shows that a marshaling order under Section 544(a) of the Bankruptcy Code is difficult to sustain. The Bankruptcy Court ordered asset marshaling based upon the request of a senior secured creditor of the company. The creditor claimed that an asset marshaling would benefit unsecured creditors.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1993
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