• S.D.N.Y. Bankruptcy Court Provides Guidance on Fixture Classification and Valuation
  • November 22, 2017 | Author: Peter J. Keane
  • Law Firm: Pachulski Stang Ziehl & Jones LLP - Wilmington Office
  • In an incredibly detailed and lengthy 205-page post-trial ruling, Judge Martin Glenn of the Southern District of New York Bankruptcy Court delved into the weeds of a dispute between the Avoidance Action Trust (the “Trust”)—a body serving on behalf of Old GM’s unsecured creditors— and certain secured term lenders of Old GM in Motors Liquidation Co. Avoidance Action Trust v. JPMorgan Chase Bank, N.A. (In re Motors Liquidation Co.), No. 09-50026, 2017 WL 4280934 (Bankr. S.D.N.Y. Sept. 26, 2017). The defendant term lenders initially held a security interest in approximately $1.5 billion of Old GM’s assets, with a perfected security interest originating from a UCC-1 financing statement filed in Delaware. Id. at *3. In an earlier stage of the litigation, the perfected security interest was terminated when a UCC-3 termination statement was mistakenly filed. Id. Despite the termination statement, the term lenders argued that at the time of the historic section 363 sale of GM’s assets in 2009, they held a perfected security interest in over 200,000 fixtures at various GM plants because of 26 fixture filings in counties where the disputed assets were located.Id.