► In This Issue:

• Secured Creditors Must Insist on Credit-Bidding Rights; Otherwise Waivable
• Collateral Interest in Insurance: Confusing Territory
• New and Improved! ABI’s Committee Website has Moved

George Klidonas BakerHostetler New York

The Secured Credit Committee is pleased to welcome George Klidonas of BakerHostetler in New York as the committee's Newsletter Editor. George previously served the Bankruptcy Taxation Committee as Education Director and Co-chair, and is eager to continue his work with ABI's committees in this new position.

If you are interested in authoring for the Secured Credit Committee Newsletter, please email George to set your topic and deadlines.

Secured Creditors Must Insist on Credit-Bidding Rights; Otherwise Waivable

Jeffrey E. Altshul Carlson Dash LLC Hawthorn Woods, Ill.

What happens if an undersecured creditor makes an election under 11 U.S.C. § 1111(b) but does not otherwise participate in the bankruptcy process? The Fifth Circuit Court of Appeals addressed this question in In re R.L. Adkins Corp.[1] In In re Adkins, the debtor filed a plan of reorganization recognizing the lien of Bakers Hughes Oilfield Operations, Inc. (BHO) on four mineral leases and one well. The total amount due to BHO far exceeded the value of its collateral.

Prior to the confirmation hearing, BHO filed an election for treatment of its claim under § 1111(b), which allowed its claim to be fully secured while giving up rights to any unsecured portion. BHO did not appear at the confirmation hearing, nor did BHO file any objection to the debtor’s plan. The plan proposed a sale of numerous mineral leases and several wells to a third party in a bulk sale.  Read More

Collateral Interest in Insurance: Confusing Territory

Peter C. Blain Reinhart Boerner Van Deuren s.c. Milwaukee

Secured lenders often look to the borrower's or guarantor's rights under insurance policies to improve their collateral position. For example, obtaining a collateral interest in a business interruption insurance policy may protect a lender who is dependent upon the ongoing cash flow of its borrower for debt service. Moreover, obtaining an assignment of an interest in a life insurance policy of the borrower's owner or a principal guarantor protects the lender against the economic effect of the sudden loss of a member of the borrower's team essential to its success.

Despite its importance to many commercial loan transactions, the law governing lien interests in insurance is non-uniform. Since 1945, matters relating to insurance have been left to each state. More importantly...  Read More

New and Improved! ABI’s Committee Website has Moved

You may have noticed a few changes to the committee site over the last week, including a new location. The committees' webpages have now been integrated into the main ABI website. To access these new pages, simply visit abi.org, hover over the "Membership" tab, and click on "Committees." Here, you will be able to access newsletter articles, recent recordings, announcements, listserve activity and contact information for your leadership team.

Not sure of what committees you are a member? Update your profile, select the "Committees" tab and use the check boxes to update your status. While you're here, take a few moments to update your full preferences, including CLE and bar information, contact information, title, and more. Uploading a professional photo is also a great way to make yourself more visible in the directory. Not only will your photo be included in the directory, but ABI staff will also have it available for use with any future article or speaking bylines.

Have comments, questions or concerns? Email us through our new support system: [email protected].