Surprise! Where Did My Collateral Go (Again)? The Story

April 1, 2019

By David W. Morse

By now, many lenders have heard of the steps taken by J. Crew to remove its valuable intellectual property from the collateral securing its term loans and asset-based credit facilities through a clever (although disputed) use of the transactions permitted under the negative covenants included in the credit agreements governing such credit facilities (the “baskets”).

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About the Author

David Morse
David W. Morse is a member of the law firm of Otterbourg P.C. in New York City and is presently head of the firm’s finance practice. He has been recognized in Super Lawyers, Best Lawyers and selected by Global Law Experts for the banking and finance law expert position in New York. Morse is a representative from the Commercial Finance Association in one of the current projects of the United Nations Commission on International Trade Law (UNCITRAL) concerning secured transactions law.