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Print PDF Erosion of Secured Creditors' Rights: Has the Pendulum Swung in Favor of Unsecured Creditors
By Larry G. Halperin, Michael Friedman and Joon P. HongDecember 10, 2009
The unprecedented economic crisis has led to increased scrutiny of secured creditors and challenges to rights generally enjoyed by them. Recent court decisions reflect a shifting of the pendulum from protection of secured creditors towards recoveries for unsecured creditors. This memorandum, written by Richards Kibbe & Orbe partners Larry G. Halperin, Michael Friedman and Joon P. Hong, looks at the seeming erosion of secured creditors' rights and discusses several recent cases that alter or affect long standing doctrines that have protected secured creditors.