SFIG Files Brief Supporting Liquidation Of Securitization Vehicle

The Structured Finance Industry Group ("SFIG") submitted a proposed amicus brief to the SDNY Bankruptcy Court presiding over the involuntary chapter 11 petition pending against Taberna Preferred Funding IV, Ltd. In the brief, SFIG argued that Taberna is a non-recourse securitization that lacks the capacity to be reorganized and should be liquidated by its terms.

The potential erosion of this fundamental tenet of the securitization industry is not just of significant import to Taberna, SFIG asserted, but to securitization markets and the industry at large: