{"id":1851,"date":"2016-09-23T12:23:03","date_gmt":"2016-09-23T16:23:03","guid":{"rendered":"http:\/\/www.lindabury.com\/firm\/?p=1851"},"modified":"2019-12-23T18:10:49","modified_gmt":"2019-12-23T23:10:49","slug":"common-carriers-can-utilize-maritime-lien-law-enhance-creditor-position-chapter-11-matters","status":"publish","type":"post","link":"https:\/\/www.lindabury.com\/firm\/insights\/common-carriers-can-utilize-maritime-lien-law-enhance-creditor-position-chapter-11-matters.html","title":{"rendered":"Common Carriers Can Utilize Maritime Lien Law to Enhance Their Creditor Position in Chapter 11 Matters"},"content":{"rendered":"<p>In re: World Imports LTD (No. 15-1498)<\/p>\n<p>Recently, the U.S. Court of Appeals for the Third Circuit issued a favorable decision for a secured creditor in the context of maritime liens on the prepetition goods of a Chapter 11 debtor, World Imports, Ltd., et al. The court noted the existence of a strong presumption that the creditor, OEC Group (\u201cOEC\u201d), a provider of non-vessel-operating common carrier transportation services, did not waive its maritime liens in connection with the prepetition goods. The court indicated there was clear documentation that the parties intended such liens to survive delivery of the goods, and evidence of an intention to preserve the lien after delivery. The contract stated that the \u201clien shall survive delivery, for all sums due under this contract or any other undertaking to which the merchant was party.\u201d In support of the decision, the Court noted the \u201cfamiliar doctrine\u201d of admiralty courts that enables maritime liens to attach to property substituted for the original object of the lien. Although the lien arose by operation of law, the Court held that the parties were free to modify or extend the existing liens via contract, extending the lien from the prepetition goods to the \u201ccurrent goods\u201d which included landed goods in OEC\u2019s possession and those goods in transit for which OEC was to provide delivery in the near future.<\/p>\n<p>The Court reasoned that the express agreement that OEC would not waive its liens upon delivery, constituted an ex ante agreement that OEC would retain the position already afforded by operation of maritime law. Essentially, the extension of the outstanding liens from prepetition goods to current goods functioned, in the aggregate, as it would have as to individual shipments, under maritime law.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.lindabury.com\/firm\/insights\/common-carriers-can-utilize-maritime-lien-law-enhance-creditor-position-chapter-11-matters.html\"  title=\"Continue Reading Common Carriers Can Utilize Maritime Lien Law to Enhance Their Creditor Position in Chapter 11 Matters\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In re: World Imports LTD (No. 15-1498) Recently, the U.S. Court of Appeals for the Third Circuit issued a favorable decision for a secured creditor in the context of maritime liens on the prepetition goods of a Chapter 11 debtor, World Imports, Ltd., et al. The court noted the existence of a strong presumption that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[399,236,65],"tags":[],"coauthors":[168],"class_list":["post-1851","post","type-post","status-publish","format-standard","hentry","category-banking-financial-services-insights","category-b-width","category-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Common Carriers Can Utilize Maritime Lien Law to Enhance Their Creditor Position in Chapter 11 Matters &#8212; September 23, 2016 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. Firm News &amp; Events<\/title>\n<meta name=\"description\" content=\"In re: World Imports LTD (No. 15-1498) Recently, the U.S. Court of Appeals for the Third Circuit issued a favorable decision for a secured creditor in the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lindabury.com\/firm\/insights\/common-carriers-can-utilize-maritime-lien-law-enhance-creditor-position-chapter-11-matters.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Common Carriers Can Utilize Maritime Lien Law to Enhance Their Creditor Position in Chapter 11 Matters &#8212; September 23, 2016 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. 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