In re TWA Inc. Post Confirmation Estate
United States Bankruptcy Court for the District of Delaware
312 B.R. 759 (2004)
Relevant factsFree
The USDA (creditor) performed federally authorized inspections on TWA's (debtor) aircraft and asserted statutory liens under 21 U.S.C. § 136a for over $300,000 in unpaid inspection fees, but never recorded any of those liens with the FAA as the separate Federal Aviation Act required for aircraft liens; after TWA's Chapter 11 filing, the bankruptcy estate moved for summary judgment that the USDA's unrecorded liens were unperfected and avoidable under § 545(2).
IssueFree
Under § 545(2) of the bankruptcy code, may the bankruptcy trustee avoid a statutory lien against the debtor's property if the lien was not perfected?