Most states have enacted laws creating materialmen’s and mechanics’ liens in favor of suppliers of goods and services for construction projects. This program focuses on a creditor’s ability to obtain, preserve, and enforce its lien rights where a customer in the construction supply chain files for bankruptcy. The speakers will discuss:
- Differences among state laws governing the creation, perfection, maintenance, and enforcement of lien rights;
- The impact of a bankruptcy filing, including the automatic stay, on lien rights and related remedies;
- Strategies to protect lien rights, including how inaction risks loss of lien rights in connection with chapter 11 DIP financing, a bankruptcy sale, and a chapter 11 plan
- Special defenses that a lien creditor can assert when confronted with a preference claim.
