The legal profession has been atwitter with the discussion of the Second Circuit’s opinion regarding Simpson Thacher inadvertently consenting to the release of JP Morgan’s (JPM) lien, as agent on behalf of a group of lenders, over certain equipment securing a term loan made in 2006 to General Motors (GM).1
The inadvertent release of the lien over the collateral for the term loan occurred in 2008, prior to GM’s bankruptcy filing. At the time of the inadvertent lien release, GM had sought to terminate a synthetic lease entered into in 2001 and obtain release of the liens over the equipment that had been the subject of that transaction.
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1 Official Comm. of Unsecured Creditors of Motors Liquidation Co. v. JPMorgan Chase Bank, N.A. (In re Motors Liquidation Co.), 777 F.3d 100 (2d Cir. 2013).