Cash Collateral—An Illusion or a Reality?

Partners Barbara Goodstein and Adam Wolk, examine a recent bankruptcy court decision that serves as a powerful reminder for secured creditors: holding cash collateral requires more than good intentions — it demands actual control, proper documentation, and continuous tracking. In In re Servicom, LLC, the court denied a creditor's $1.4 million claim after finding the cash had been spent and commingled, reinforcing that the ability to access funds is not the same as holding them as security.