FTX bankruptcy UCC-1 filings - debtor name consistency issues

This is exactly right. The continuation has to match the original UCC-1 debtor name character for character. Period vs no period, Ltd vs Limited, it all matters.

But what if the original filing has the wrong name? We've seen cases where the bankruptcy filing uses one name and the UCC uses another.

Good idea but I've already tried that. Found like 6 different variations of the FTX name across different filings. Some have 'Ltd.' others 'Limited' and some just end with 'Trading'. It's chaos.

That's why you need to stick with whatever's on YOUR original UCC-1. Don't worry about what others filed incorrectly.

How does that work exactly? Do you just upload PDFs?

Yeah, super simple. Upload both documents and it cross-checks debtor names, filing numbers, everything. Highlights any mismatches immediately so you can fix them before the SOS rejects your filing.

Sounds like it would have saved me a lot of headaches on my last amendment filing. Filed three times before getting the debtor name exactly right.

I get the frustration but the name matching rules exist for good reasons. Protects against fraudulent filings and ensures proper notice to debtors.

Yeah well it also screws over legitimate secured creditors when the system is this picky about punctuation and abbreviations.

Good point. I think most of the FTX entities were Delaware corps. Will check their Articles of Incorporation for the exact legal names.

Delaware Division of Corporations online search is pretty good for this. Just search 'FTX' and you'll see all the exact entity names on file.

We're filing continuations to extend the 5-year effectiveness period. The debtor names on our original UCC-1s are correct, but the SOS system keeps rejecting because it can't match the format.

Oh okay that makes sense. Yeah continuation statements are super picky about exact name matches. You can't even fix a typo with a continuation, has to be identical.

That's expensive but probably the safest approach. Better to pay extra fees than have your security interest lapse because of name technicalities.

How long did that whole process take? We're getting close to our 5-year deadline.

About 3-4 weeks total. Amendment took a week to process, then continuation was quick once the name was corrected.

Good suggestion. The UCC staff are usually pretty helpful if you can get them on the phone.

I'll try that. Worth a shot before paying for amendment filings.

Did it help you figure out which name format to use for the continuation?

It showed me exactly which original UCC-1 had which debtor name format, so I could match the continuation perfectly. No more guessing.

Great point. We have filings in NY, Delaware, and California. Need to check each state separately.

Each state's UCC database is separate so you'll need to verify debtor names in each one individually.

California's system is particularly picky about debtor names. Had three rejections there before getting it exactly right.