Debtor Naknek is a cooperative that serves its members in a remote part of western Alaska Its primary source of fuel was diesel which exhibited a substantial increase in its price from 2005-2008. In mid-2009, Naknek sought to diversify its power source by pursuing a geothermal development. It acquired a drilling rig and moved it to lands it owned. In September 2010, Naknek field a chapter 11 bankruptcy petition due to the large debt it had incurred in pursuing the geothermal project. Prior to the filing a number of creditors had filed statutory liens. Two of Naknek's largest creditors, Baker Hughes and CoBank had obtained and recorded judgments against it prior to the filing of the petition. This adversary proceeding involves competing lien priorities between National Rural Utilities Cooperative Finance Corp. (CFC) and other creditors with liens against the well and the drilling rig. All sides filed summary judgment motions. CFC asserted that its financing statement gives it priority over all of the plaintiffs' statutory Hens.
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