UCC Paperwork Error at Forefront of GM Bankruptcy Dispute
UCCRegular readers know that here on the FCS blog, we have discussed unauthorized/accidental terminations in several posts. For those of you who may be new to the blog. Here is a sampling of some of our previous posts on the topic:
- Tips for Tackling Fraudulently Filed Termination Statements
- When is a Terminated UCC Record not Really Terminated?
- Two Important Reasons to Include Terminated Filings in Your UCC Search Efforts
Now, a termination error is making big news in the GM bankruptcy proceedings. According to a report from Thomson Reuters:
NEW YORK (Reuters) – Unsecured creditors of General Motors Co are appealing a defeat in a $1.5 billion fight with the company’s lenders that shows the potentially drastic implications of a paperwork error.
Through an appeal lodged on Thursday in U.S. Bankruptcy Court in Manhattan, the creditor group continued a three-year fight over whether lenders, led by JPMorgan Chase & Co, should have to pay for accidentally filing a financing document that may have terminated their lien on GM’s assets.
Read all about it here!