For better or worse, 2018 did not see a large number of notable cases addressing secured transactions issues. One case that did generate attention was the decision of Judge Kevin J. Carey in the Delaware bankruptcy proceeding of Woodbridge Group of Companies, LLC (see In re Woodbridge Group of Companies, LLC et al., 2018 WL 3131127 (Bank. D. Del., June 20, 2018)).

The Woodbridge case upheld a provision in a promissory note prohibiting transfers. In so doing, it not only unsettled the robust bankruptcy claims trading market, but was roundly criticized by commentators for its analysis of UCC §§9-406 and 9-408, admittedly among the most complex and inscrutable provisions in UCC Article 9.

Background

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