< meta name="DC.Date.Valid.End" content="20050825"> Amendment Nine: Judicial Lien Creditors

Thursday, February 03, 2005

Judicial Lien Creditors

Scum of the earth... or so the bankruptcy courts typically so hold. Not only did Tower go 11 yesterday, but little ol' USM (shoemaker based in Mass) went to the undertaker. A lot of people ignored this, but I always find it amusing when a judicial lien creditor forces an 11. This time, the creditor was USM's landlord! How dare they? Collect rent on a corporation? The audacity!

Despite my dropped jaw, Teradyne, a landlord of USM's former headquarters in NH, got an $800K plus judgment against USM. Next it seems the judgment triggered a default provision in the bank debt, which of course made it impossible for USM to pay out cash (dirty landlords). The whole thing is really amusing, and with the ... well, "laces off" progress of the N. American shoe industry these days, USM ain't looking so hot.

This novelty of the case got me thinking a little about Mitya's proposal on tort reform. How much you think Teradyne would sell that judgment for? Cause I have a damn good idea how much its truly worth.