John Carroll, co-chair of Cozen O’Connor’s Bankruptcy, Insolvency & Restructuring Practice Group, and Simon Fraser, a member of the Bankruptcy, Insolvency & Restructuring Practice Group, discuss a U.S. Court of Appeals for the Third Circuit decision on maritime possessory liens in the American Bankruptcy Institute Journal. John and Simon note that “In re World Imports is the first circuit-level decision on the question of whether these ‘contractually extended’ maritime liens are enforceable.” They also note that “The decision also stands to benefit financially imperiled customers, as their carriers may now be more inclined to release goods without first receiving payment, safe in the knowledge that courts, at least within the Third Circuit, will uphold their right to look to other cargo as collateral.”
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