General Motors

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You Should Know - February 2015

In This Issue: - Year of the Recall - Check Your Car Here - Free Accident Guide - Excerpt from Check to See If Your Car Is on the List: Auto Safety Crisis Spurs Record Year of Recalls - A...more

UCC Lien Termination Error May Result In Huge Loss For Lender

The legal principles governing corporate finance are often complex. Sometimes, however, the simplest of errors can be the most costly. Such was the case with a large syndicated secured loan made to General Motors. Due to a...more

"Congressional Investigations Highlight Risks for Companies Across Industries"

An examination of congressional investigations in 2014 reminds us that such investigations can strike an industry or company at any time. Irrespective of the subjects, the investigations typically share one or more of the...more

Second Circuit to Lenders: Get Your UCC Filings Right

On January 21, 2015, the U.S. Court of Appeals for the Second Circuit issued an opinion regarding a mistaken UCC-3 termination statement that all loan market participants should consider carefully. The Second Circuit held...more

Game Changer? The S.D.N.Y. Endorses a Company-Friendly Privilege Standard

In In re General Motors LLC Ignition Switch Litigation, No. 14-MD-2543 (JMF), 2015 U.S. Dist. LEXIS 5199, at *220 (S.D.N.Y. Jan. 15, 2015), Judge Furman upheld General Motors' claim of privilege and work product protection...more

The GM Engine that Couldn’t: $1.5B Nail in JPMorgan’s Coffin

In our recent post, “Review Twice, File Once, Review Again; UCC-3 Termination Intent Irrelevant,”we described how the Delaware Supreme Court set forth how a secured party’s lien can be terminated without the requisite intent,...more

Second Circuit Rules Unintended UCC Termination Statement Was Authorized

When terminating a financing statement, it is necessary to be certain that other financing statements are not unintentionally released, according to an opinion last week of the Second Circuit Court of Appeals. The effect of...more

Erroneous UCC-3 Termination Leads to Disastrous Consequences

In a recent decision, a U.S. Court of Appeals held that the filing of a UCC-3 termination statement in a relatively simple payoff transaction between General Motors and a lender was still considered "authorized," despite the...more

Second Circuit: A Mistakenly Authorized UCC Termination Statement Is Effective to Terminate Original UCC Filing

On January 21, 2015, the United States Court of Appeals for the Second Circuit entered an opinion holding that an authorized UCC-3 termination statement is effective, for purposes of Delaware’s Uniform Commercial Code (the...more

Mistakes and Regrets: UCC Filing Error Terminates Security Interest

Action Item: When a secured loan is being paid off, lenders routinely authorize the borrower’s counsel to prepare and file UCC termination statements releasing the lender’s security interest in the borrower’s property. ...more

Mistakenly Filed UCC Termination Statement Results in Lender’s $1.5 Billion GM Bankruptcy Unsecured Loan

On October 20, 2014, we issued a Legal News Alert commenting on a decision of the Delaware Supreme Court, on certification from the Second Circuit, regarding the effect of a mistaken UCC-3 termination statement. The Delaware...more

A Cautionary Tale – The Need for Bank Oversight on Collateral Releases

Beware!! The story brought to us today courtesy of the Second Circuit Court of Appeals (In re: Motor Liquidation Co., 13-2187) is one that should strike fear into the hearts of all bankers and lawyers. It is a cautionary tale...more

What's Next for NHTSA and Automotive Safety?

This past year, we witnessed the GM Ignition Switch investigation, which involved massive recalls, multiple Congressional hearings, and civil penalties; the ongoing Takata airbag inflator investigation and recalls (and more...more

ML Strategies Energy and Environment Update: Week of 1/13/2015

ENERGY AND CLIMATE DEBATE - The 114th Congress and the final two years of the Obama Administration include a full energy and environment agenda....more

2015 Trends: #3 Culture (Still) Trumps Compliance

We asked industry experts, colleagues and compliance officers what they believe will be the top issues impacting workplace ethics and corporate compliance programs in 2015. We gathered their best thinking and prepared our...more

C-Suite Risks and Compliance

A nickel ain’t worth a dime anymore. – Yogi Berra With all the hubbub about ethics and compliance, senior managers somehow are able to escape any focus or responsibility for compliance programs except in a managerial...more

Delaware Supreme Court: A Mistakenly Authorized UCC Termination Statement is Effective to Terminate Original UCC Filing

On October 17, 2014, the Delaware Supreme Court entered an opinion holding that a UCC-3 termination statement that is authorized by the secured party is effective to terminate the original UCC filing even though the secured...more

Delaware Supreme Court Finds UCC Termination Filings Valid Despite Lack of Lender’s Intent

On October 17, the Delaware Supreme Court held that JP Morgan (JPM) terminated its security interest in all of the collateral provided by General Motors (GM) in support of a $1.5 billion loan, despite neither party intending...more

Delaware Supreme Court Rules Mistakenly Filed UCC Termination Statement Is Effective in $1.5 Billion Secured Loan Transaction

Lenders need to exercise great caution when filing a UCC-3 termination statement. They must make sure that the list of security interests terminated is accurate and that the statement does not mistakenly include other,...more

Goodbye Mr. Millikin: GM’s Continuing Culture Challenges

The GM debacle over its handling of the ignition switch defect continues. GM’s CEO Mary Barra and the rest of GM’s leadership just do not seem to be getting the message. It is not unusual for C-Suite executives to lead from...more

Cadillac Moving to the Big Apple

General Motors’ Cadillac luxury car division, founded in Motown and named for the city’s founder, is moving 650 miles east to New York’s SoHo neighborhood. Cadillac, which has been steadily losing sales to its foreign rivals,...more

NHTSA's September Scrutiny

September was a difficult month for NHTSA. During one week alone, a New York Times article blasted NHTSA for failing to investigate a number of defects that later resulted in injuries and fatalities and, ultimately, recalls;...more

A Busy Year for NHTSA Enforcement and Rulemaking

This promises to be one of NHTSA’s busiest years for enforcement and rulemaking activity. NHTSA is expected to continue its aggressive enforcement, sparked by GM’s massive ignition switch recall and the flood of follow-on...more

Credit Crunch Digest -- August 2014

This issue of the Credit Crunch Digest focuses on Libor yen manipulation; Bank of America’s nearly $17 billion settlement with regulators; ongoing investigations into “dark pool” trading; a $1.3 billion fine imposed on Bank...more

Fatal accident leads to another claim against GM

Alabama residents may be interested to learn that GM is facing yet another wrongful death lawsuit that was recently filed in another state, following the 2012 death of a man driving a 2011 Chevrolet Express 2500 van. The suit...more

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