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UCC Paperwork Error at Forefront of GM Bankruptcy Dispute

March 29, 2013 UCC

Regular 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:

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!



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