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<a href="http://www.accessmylibrary.com/coms2/summary_0286-20845071_ITM" title="Facts and information about Extra, from the appellate corner--hot off the presses: Delaware appellate court affirms priority of trade creditor's stoppage of delivery rights over buyer's inventory secured lender.">Extra, from the appellate corner--hot off the presses: Delaware appellate court affirms priority of trade creditor's stoppage of delivery rights over buyer's inventory secured lender.</a>
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Extra, from the appellate corner--hot off the presses: Delaware appellate court affirms priority of trade creditor's stoppage of delivery rights over buyer's inventory secured lender.
Introduction
Trade creditors know the difficulty of collecting theft reclamation claims, particularly where the debtor has a secured lender with a floating lien in all of the debtor's present and future inventory. Just read the article entitled "Are Reclamation Rights Preserved Where Debtor's Secured DIP Lender Pays Off Pre-Petition Secured Inventory Lender? Yes and No" that appears in this issue of Business Credit, on page 16.
Well trade creditors, don't fret because an alternate remedy, the tight to stop delivery of goods sold to an insolvent buyer, is even more potent than reclamation! And the United States District Court in Delaware, in Trico Steel ...
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