Originally Posted by
Thor
Check your federal bankruptcy law, and note the Mechanics Union filing a claim as a creditor in BK is not the same as a "mechanics lien". A creditor can file a claim against tangible assets held in bankruptcy to secure payment, which is what the mechanics did. The company was faced with liquidating the encumbered assets to pay the claim via the creditors committee or find another way fund the mechanics claim. The company chose the latter.
PS. TK = Total Konfusion
Bankruptcy claims aren't for the specific assets. The trustee gets to potentially liquidate whatever assets have value and then distribute to specific lien holders. So the mechanics can't just pick an asset, like TK, and say they get all the proceeds if that asset is liquidated.