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Lexington Hospitality Group: Not A Very Hospitable Decision

LexisNexis (December 19, 2017, 2:57 PM EST) -- A Kentucky bankruptcy court recently held that a secured lender did not have a perfected security interest in hotel or restaurant revenue, thereby allowing a debtor to use cash from those operations without restriction. In re Lexington Hospitality Group, LLC, 2017 Bankr. LEXIS 3782 (Bankr. E.D. Ky. November 1, 2017). Yet the secured party had all the loan documents you would expect a secured party to have for this type of loan, and made only a modest, debatable mistake on its financing statement. We think the...
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