Article

| February 2, 2012

Protecting Liens on Debtors' Commercial Tort Claims

Commercial tort claims of a debtor can constitute valuable collateral for a secured party, provided, of course, the secured party’s lien on that collateral is properly created and perfected. Because tort claims are not ordinary-course assets of most debtors, they are generally not a focus of most secured parties. Nevertheless, commercial tort claims can arise, often unexpectedly, after a debtor experiences financial distress.

This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent. For further information on Dewey & LeBoeuf, please visit www.dl.com. +1 888 532 6383